Ach Payment Processing
What Is Ach Payment Processing?
Ach payment processing is fast becoming one of the most popular payment options available. Ach is often used in place of the full term, Automated Clearing House. Automated Clearing House is a network of ach processors and operators that complete monetary transactions in the United States. For a merchant this can include direct debit ach payments on bills, direct deposit employee payroll, and point of purchase debit transfers in the receipt of payments from customers.
How do Ach Payments Work?
Ach payments are processed as an electronic transfer of funds from one bank account to another. Traditionally, when a bill was paid with paper check, the check provided written instructions to the financial institutions involved to transfer the funds from one account to the other. Ach payments make this happen without the paper check being involved. Ach processors typically act on behalf of the originator and or the receiver. The originator is the person or business initiating the transaction. The receiver is the person or business receiving the ach transaction. An Ach processor is a third party company that is hired to process the electronic transactions. Ach operators, otherwise known as the clearinghouse, are typically managed by the Electronic Payments Network and the Federal Reserve.”
Why Offer Ach Check Processing as a Payment Option?
Ach check processing is quick, convenient, and requires no check writing. Ach payments can be easily set up as a pre-authorized monthly transaction to pay recurring expenses. Ach payment processing is done by an ach processor and requires no deposit slips or trips to the bank. Ach check processing typically costs less than traditional credit card processing and offers customers an alternative method of payment. This allows a business to include a larger market in online shopping by allowing customers who do not have credit cards to provide their ach authorization online. The ach process is secure and overseen by federal regulations and compliance agencies so businesses and individuals can rest easy that their financial information is safe. Ach processor services are a great option for many businesses and consumers looking for quicker and easier ways to pay expenses. Ach payments will only increase in popularity. Merchants and businesses looking for ways to expand their customer’s payment options should consider the benefits of ach check processing and the advantages over traditional credit card processing.