It’s true that ACH payments might not be suitable for every business. In fact, they might be an inconvenience for some. While this is the case, they might be perfect for others, especially those running subscription businesses or collecting payments in installments.
If you have a subscription business, it’s wise you start accepting ACH payments.
Why should you accept ACH payments for your small business? Well, there are plenty of perks that come with it, with the common ones being:
ACH payments are cheaper than credit and debit card
ACH bypasses the credit card networks, so they bypass assessment and wholesale interchange fees. This means they are cheaper to process, so you pay less in processing fees. As you can tell, this is more money you can pump into your business and grow it, right?
They are free for your customers.
Most banks offer their customers a free bill payment service that uses ACH transfers. Since your customers don’t incur any costs when they pay using ACH, you have an easier time convincing them to pay you directly from their bank account.
They are more secure.
If using the right gateway, ACH payments provide your customers with an option to pay without sharing their payment details with your staff. This means that their vital information is kept private.
Sometimes, the customers can even push payments directly from their bank account without disclosing their details.
They are easy to set up.
If you are already collecting credit card payments, you can use the same credit card processor and add the ACH option.
In some cases, you can even process the transactions directly through your existing POS system.
They allow convenient scheduling.
If you have a subscription business or regularly collect payments from your customers, you can easily set up the system to automatically collect the payments from the customer’s accounts. This comes in handy as it helps you plan for your business, as you have predictable revenue on a recurring basis.
You also don’t worry when or if your customers will send their monthly payment.
They have stricter chargeback rules.
One of the major challenges of collecting debit and credit card payments is chargeback. Scammers try to take advantage of the system’s loopholes, which might hurt your business if you fall victim.
ACH payments are much stricter, which protects your business. With ACH, there are only three reasons your customers can start a reversal:
- The transaction was never allowed, or the authorization was revoked
- The transaction is for an amount different from the allowed
- The transaction was processed on a date earlier than permitted.
Incorporate ACH payments into your business
It’s no doubt that ACH payments are valuable to businesses. If it makes sense to include them in your establishment, do it.
For a great experience, work with a reputable merchant with lower fees and easy-to-use platform.
The merchant should also have excellent customer service. You don’t want to be stuck, and you can’t find the help you are looking for, do you?