There are plenty of ways for businesses to accept payments, but between cash, paper checks, credit cards, or ACH payments, many businesses opt for ACH payment processing all the way. Below we provide three reasons why:
Many businesses accept ACH payments for the singular reason that they are the lowest cost option for electronic payments. Unlike the other payment options, the majority of ACH payments are billed with a flat fee per transaction.
In order for a business to accept different forms of payment, each business must be approved by partner credit card and ACH processors. Often, a merchant will be authorized to accept ACH payments, but not credit card payments.
While ACH payments are accepted in smaller volumes by businesses because they are a lesser-known, most merchants find them to be the optimal choice for their customers. Many merchants find ACH processing so convenient and cost-effective, that even with a credit card option, they will still make ACH their primary form of payment acceptance.
Some customers may dread providing their bank account number to a business and imagine that uttering the words aloud will immediately compromise their security. However, what they don’t realize is that their routing and bank account numbers are printed on the bottom of all paper checks. And this day in age, we’ve all been trained to keep our credit cards safe and secure, yet we allow paper checks to pass through many hands. Every time a check is used, a customer is actually exposed to a higher risk than by simply telling his or her account number to a business owner for ACH payments.
Storing paper checks or cash at the office and then transporting them to the bank increases the chance of a customer’s personal information being seen or even stolen. Accepting ACH payments mitigates these hazards not only for customers, but for the business itself.
By accepting ACH payments, your customer’s account numbers are encrypted and entered into a secure system for every transaction. This means no sensitive information is exposed as the encrypted data is transmitted via computers, removing the risk of prying eyes and predatory fraudsters.