ACH Payments and How They Can Benefit Your Business
As a health and wellness provider, both you and your clients stand to benefit from adopting ACH payments. Automated Clearing House electronic payments are a quick and efficient way to transfer money from your customer’s bank account to yours. And greater convenience, lower processing costs, and fewer administrative errors give them an attractive edge over paper checks and credit cards.
ACH payments are becoming increasingly popular with bill-paying consumers across the board. In fact, the number of payments processed through the ACH network exceeded 25 billion in 2016. According to the National Automated Clearing House Association (NACHA), that represents some $43 trillion dollars worth of electronic transactions.
Behind the Scenes with ACH Payments
In the healthcare industry, ACH payments can improve the collection of one-time and recurring customer charges. With an eCommerce solution such as the Beacon Gateway for example, clients can authorize your business to directly debit their checking or savings accounts for bills that are paid through your website.
The ACH network connects all the banking and financial institutions in the US, and is regulated by the NACHA. Here’s how it works:
- Once a customer payment has been authorized, the details are transmitted electronically to the Originating Depository Financial Institution (ODFI)
- The ODFI processes the payment information and transfers it, through the ACH network, to the Receiving Depository Financial Institution (RDFI) – otherwise known as your customer’s bank
- The RDFI then debits your client’s bank account for the appropriate payment amount
In most cases, customer payments are transferred (credited) to your bank account within one business day.
ACH payments help streamline receivables, and reduce the incidence of chargebacks and insufficient funds.
Unlike paper checks, ACH payments:
- Don’t get lost in the mail
- Don’t have to be toted to the bank
- Don’t have to be manually entered into your accounting system
And compared with credit card payments, ACH payments:
- Typically cost less per transaction
- Compound cost savings when they’re used for recurring billings
- Reduce the risk of fraud
With ACH fund transfers, your business benefits from real-time payment authorization and the ability to accept remote payments. And by automating your monthly billing cycle with electronic debits, you’ll gain more control over your collection process.
Many clients prefer to pay their bills electronically because it saves them from having to write, mail, and pay for paper checks. Automatic payments also mean they’ll never have to worry about missing a bill. And with payees indicated right on their bank statements, ACH payments make it easier for your customers to keep track of their financial transactions.
Accepting ACH payments is simple and secure when you partner with a reliable payment processor. Beacon offers a full range of integrated, efficient payment processing solutions for all your eCommerce and POS needs.