The Benefits of ACH Processing For Your Business
Cash may be king, but card is certainly close after that. In the US, paying by debit or credit card has been the norm for years now, especially when paying for online services. But let’s face it – card payments are rife with issues, and there’s a solution sitting right under your nose that could eliminate decline rates and lower your processing cost: ACH Processing.
But how does ACH Processing work for your business, and what are the benefits? Let’s take a look.
What is ACH Processing?
Where credit and debit cards offer a kind of “middle man” to your bank account, ACH Processing debits or credits the savings or checking account itself. Operating via the ACH payment rail, ACH payments are sent to the Federal Reserve via batches, usually on the next working day, with the banks involved then confirming adequate funds and transferring payment.
Where ACH Processing particularly shines is for recurring payments, a business model that thousands of SaaS platforms operate worldwide. By eliminating the credit or debit card, you instantly gain a host of benefits.
But what are the main ones?
A Cheaper Way To Process Payments
A huge draw of ACH Processing is that it’s much cheaper than paying by card for your business. For card payments, transaction fees can hover at around 2.5%, and may even be more in some cases. That means that every time your customer pays, you’re paying a fat percentage – and if you have thousands of customers paying every month, that adds up enormously.
ACH Processing, on the other hand, is vastly cheaper, with transaction rates being as low as 0.3%. Again, if you have thousands of customers paying monthly, that’s a huge saving.
A Lower Rate Of Rejection
We all know how often credit and debit cards can be declined. And with decline rates sometimes topping 15%, this can leave your business out of pocket fast.
By going directly to the bank account with ACh Processing, though, you can slash these rates significantly. ACH Processing operates on a much slimmer margin of decline – around 2% – thanks to the simple fact that most people when they get a bank account, keep it. No fussing around with new credit card numbers, no changes, and more money for you.
A Variety Of Solutions
The one thing that people don’t know about ACH Processing? It’s pretty versatile for your business, folks. ACH Processing solutions can be implemented through a variety of avenues.
Your platform can integrate an ACH Virtual Terminal which offers comprehensive reporting and allows your employees to manage recurring payments. Customers can pay through a portal on your website, over the phone, or even by text message. And robust reporting and communication from the bank can allow you to perform analytics and make your business even more successful.
The Bottom Line
ACH Processing is on the rise – formerly a dark horse of the payment world, it’s now quickly becoming a go-to solution for platforms worldwide. Between lower rejection rates and smaller payment costs, it’s a no-brainer, both for your customers and for you.
To further discuss your options around ACH Processing, contact Agile Payments today. The team at Agile Payments has decades of experience in the payments sphere and can help you take your business to the next level. Get in touch now.
