ACH Processing Benefits

ACH processing Benefits

ACH processing is a better way of completing transactions as compared to the traditional payment methods. Traditional payment methods like paper-based checks and credit cards are expensive but ACH processing is a faster and cheaper way to complete transactions electronically and securely. ACH processing has many other benefits as well which make it a better and convenient way of completing transactions.

ACH payments are a very useful and advantageous method for many organisations. People are not likely to get paid but they will get their payments quicker as well. It is also a very beneficial way of completing transactions for companies that deal with recurring payments like monthly utility bills, loans, subscriptions and many other payments that have to be repeated on a regular or periodic basis. ACH processing has low transactional costs. Customers can enjoy many benefits from ACH payments as it is more convenient and secure as compared to the alternative payment methods available to them. ACH processing provides far better experience.

ACH processing not only benefits the common people and customers but is also a better option for different organisations. It helps them increase their amount of customers. Organisations will be able to add more customers because those customers that were unable to use the services due to payment issues as many don’t have credit cards will find it an easier payment method.

Some of the significant benefits of ACH processing have been listed below:


Increased Convenience

Some of the payments are of recurring nature but you only require a one-time authorization before the very first transaction if you are using ACH processing. You are not required to have any further authorization according to the rules set by NACHA and you can continue to make payments easily. This makes direct deposit payroll checks a more convenient procedure because these payments have to be credited directly to the account of the employees. Using ACH payments, employees will not have to physically retrieve their checks or go to the bank to cash or deposit the check. ACH processing is also convenient because it erases the need to make special arrangements for employees that are away for a vacation, are on a leave or working from an unusual location for a long period of time.

Better Security

According to reports from the Federal Trade Commission, every year about 9 million Americans fall victim to identity theft. NACHA says that the most common cause of increasing identity theft crimes is the easy availability of financial information obtained from paper-based checks, credit card bills and bank statements. People are not careful when disposing of these documents and there are no proper measures being adopted to protect such personal information.

ACH processing is a great solution for reducing identity theft crimes. All transactions are completed electronically which reduces the number of people who can easily get their hands on a person’s personal and financial information through badly disposed off tangible documents. Since the transactions are electronic, there is a low risk of losing them among emails, getting misplaced or stolen. The electronic records make it easier and quicker to resolve any issue regarding ACH payments which is not the case with paper checks.

Convenient Access to Funds

Paper checks can typically require up to 5 working days to get cleared and for the funds to be available for access in the bank account. ACH payments are quicker to get cleared or settled and people can access their funds much faster.

More Chances of Getting Paid

There are very little chances of facing a dispute when using ACH payments. Usually, these disputes occur when the transaction is not of the amount that has been authorised, it got processed before the date of authorization or that proper authorization was not completed in the beginning. However, these types of incidents hardly occur due to the close monitoring and proper rules of NACHA. Therefore, ACH processing is a reliable payment method for recurring payments like bills, credit or debit cards and loans etc. these payments get settled much more quickly and banks are likely to release funds for access much sooner as compared to alternative methods. There is little chance of disputes and frauds in ACH processing.

Preferred Method of Funding

Transactions are not created equally, especially in the case of ACH processing. Moreover, banks prefer electronic methods of payments instead of traditional methods like paper checks. It is a common practice of the banks to bounce a paper check in case of multiple payments from the account at the same time but the customer doesn’t have enough funds to cover them. However, the preference of electronic methods or ACH processing makes sure that you are most likely to get paid in the above-outlined situation. Remember that this not might always be the case because it depends on the bank as well but mostly the likely thing is that you will get paid.

Low Transaction Fee

Regular payment methods like the credit cards can charge a transaction fee between 1% and 4%. However, transaction fee with ACH payments is much lower as compared to this figure. This is perhaps one of the best benefits of ACH processing.

Getting started with our ACH processing solution is easy, and starts with getting in touch with us.