5 reasons to pay vendors with ACH bank transfers via Pay Bills

Editorial Team

3 min read
Coffee shop worker looking at tablet

Imagine you own a neighborhood coffee shop, and you purchase coffee beans from a local supplier on a regular basis. The supplier sends you a monthly invoice for coffee beans, so you probably want to pay the supplier as seamlessly and efficiently as possible. That’s where ACH payments come in.

ACH payments are more convenient and can help to improve your bottom line by ensuring consistent and on-time payments. In this article, we’ll discuss why ACH payments are good for your business and how Pay Bills can help. Plus, you can now send free ACH bank transfers with Pay Bills until the end of 2023.*

What are ACH bank transfers and what are the benefits for my business?

ACH payments or ACH bank transfers are electronic bank-to-bank money transfers processed through the Automated Clearing House Network. ACH payments allow for the secure electronic transfer of money between U.S. bank accounts. These transfers are generally more convenient, cost-effective, and secure—making them ideal for batched, automated, and recurring bill payments.

1. Reliable and safe

A key benefit of ACH payments for small businesses is that they are encrypted and less susceptible to malicious or incidental attacks than wire transfers, checks, or cash deposits. Another added value is easier recovery. Paper checks can pass through multiple hands, and are too often lost or stolen. There are protections in place to ensure you can recover lost ACH funds.

2. Trackable

ACH payments make it easier to maintain control and visibility over your finances. Every ACH payment comes with a unique tracking number that lets both parties know exactly where every payment stands at any given moment—freeing up time for your team and leading to better relationships with suppliers.

 3. More efficient

Schedule ACH payments in advance and spend less time writing, sending, and tracking checks. Bank transfers make it easier to keep track of income and expenses. When payments are recorded electronically, your accountant or bookkeeper can easily access your transaction history. Also, ACH payments simplify the reconciliation process, by consolidating all payments into a single location.

4. Cost-effective

Paper checks can not only be a hassle logistically, but the costs associated with checks are also pretty hefty. Small businesses can pay anywhere between $4 to $20 per check—factoring in the costs of writing checks to five bills a month could cost you up to $1,200 a year. ACH payments are one of the  most cost-effective ways to pay your vendors.

5. Free through 2023

Pay Bills typically charges a 49-cent ACH transaction fee, but you can take advantage of free ACH bank transfers until the end of 2023.*

Why use Pay Bills for ACH bank transfers?

Pay Bills is a secure and easy-to-use digital payments tool, giving small businesses the flexibility to pay vendors and suppliers exactly the way they want, including by card and ACH bank transfers (now free until December 31, 2023* when you use Pay Bills integrated into Clover POS). Your vendors still get paid how they want—with a bank transfer or paper check. Plus, we’ll only collect your vendors’ details once, conveniently saving you time.

When you schedule ACH payments in advance or set up recurring payments using Pay Bills, you’ll make your payments on time, and not a minute too soon—allowing you to hold onto your cash for longer. By streamlining your accounts payable process directly from your Clover dashboard, you can save time while managing all vendor payments from one centralized and easy-to-use platform.

*Applies to ACH-to-ACH payments debited and processed between October 16, 2023, and December 31, 2023.

Important Disclaimer: Melio is the sole and exclusive provider of services described in this article. Clover does not make any representations or guarantees as to these products / services. Please see Melio Terms & Conditions for more information.

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