If you have a business checking account, you can theoretically already accept ACH payments; the process may be more cumbersome and costly. However, if you intend to accept ACH payments regularly, you’ll probably want to find a TPPP. If you already accept credit cards, you can use the same credit card processing company for your ACH payments. With so many ways for customers to pay, it’s important to understand what each option offers. The following sections explain the major payment methods, including cards, ACH payments, mobile wallets, and buy now, pay later (BNPL).
Comply with NACHA & Regs
Throughout the ACH payment process, it’s imperative to adhere to relevant regulations and security standards governing electronic fund transfers. First, we suggest you take advantage of a free offer ledger account from Nacha, the organization that governs the ACH network. You can sign up for a free 15-minute consultation from Nacha, and use your time to discuss strategies for encouraging customers to pay via ACH transaction. Since it’s hard to change payment behaviors, it makes sense to start new customer relationships on the right foot.
Credit Risk Management
The most significant advantage of accepting ACH payments is the potential cost savings for your business. As you know, the hassle of writing paper checks can bring shoppers and checkout lines to a standstill. And credit card processing typically involves fees ranging from about 1.5 percent to 3.5 percent. Instead, they’re transmitted electronically for faster authorization and are batched to help keep expenses down. Before you can offer a discount to customers who move from paper checks or credit cards, you’ll need to understand how ACH transactions affect your bottom line. Don’t give away more than you’ll realize in savings on payment processing fees.
- ~ If the ACH payment was processed on an earlier date than was authorized.
- The information contained herein is shared for educational purposes only and it does not provide a comprehensive list of all financial operations considerations or best practices.
- ACH payments are especially handy if you’ve got customers who pay on a recurring basis, like for subscriptions or membership fees.
- If your business is looking for a way to streamline transactions, cut costs and offer your customers a safe, convenient payment option, accepting ACH payments could be a smart move.
- In fact, paying by ACH rivals credit cards across many points, such as ease of use, payment churn, and even speed, thanks to the option of same-day service.
- The banks in the ACH network are primarily based in the United States.
Continue learning with BILL
It includes robust client management and integrates with Stripe for online payments. When I owned a brick-and-mortar print shop, I needed both a point-of-sale system for walk-in business and an invoicing system for bigger jobs. Whichever payment processor you use, you should have visibility Retained Earnings on Balance Sheet into your transactions. Keep an eye on those, including daily and weekly summaries you receive, to catch any errors quickly.
Authorize.net’s new user experience combines trusted functionality with a sleek design and streamlined user experience that simplify navigation and help you get more done every day. Deliver custom digital invoices to any customer with an email address. ACH debits were most susceptible to fraud according to a 2023 study. When a customer claims a transaction was unauthorized or incorrect.
