Automated Clearing House (ACH) payment processing services allow you to accept electronic check payments, increase sales, and reduce the costs associated with paper check processing. For small businesses looking to help improve their bottom line, ACH payment processing provides valuable benefits – such as the ability to:
With an ACH processing solution, you can provide customers with another flexible payment option and accept electronic checks safely and efficiently. Similar to the paper check process, ACH payments are transmitted electronically for faster authorization and simplified transactions. You save time and cut costs associated with traditional check payments, while improving customer service and increasing profits.
The ACH payment process is similar to the traditional paper check process although governed by different authorities: clients provide their bank routing and checking account numbers. The payment is verified and sent electronically through a system pursuant to NACHA rules and regulations for the transfer of funds.
Because the ACH network processes transactions in batches rather than in real time, this payment method often costs less than accepting checks or credit cards. Further, since you only need to establish a connection between a sender and receiver once, the ACH network is ideal for recurring bill payments. Additionally, ACH payment processing is the method used for direct deposit payroll.
However, there are a couple limitations when using this payment method. For example, the ACH network is exclusively for payments made in the United States and Puerto Rico. Although you can use your small business’s bank account as a funding source, you cannot initiate payments via credit or debit card. The ACH payment processing method only transfers money from one bank account to another.
ACH/eCheck payments can be accepted through multiple channels including:
With eChecks, you can access your ACH transactions online to better manage your business, your payments, and your customers.
Electronic data theft is becoming more and more complex, making it crucial for businesses to take the proper precautions when accepting credit cards and ACH payments. ACH payment processing products should be NACHA-compliant to help protect merchants, businesses, and customers from electronic payment fraud.
While Clover doesn’t currently offer ACH payment processing services, our partnership with our parent company Fiserv enables us to connect you to the tools and resources you need to run your business. Learn about Fiserv’s ACH solutions here.