ACH PROCESSING

Accepting the payments from customers who don’t have credit card by using the payment options like ACH payment processing will ensure that merchants need have to worry about customers who shop online. In addition it will ensure that both, the merchants and the customers, are free from hassles of credit card. The ACH processing offers several advantages over other payments processing methods.

ACH payment processing differs from traditional credit card processing without offering any authorization in real time for transaction. Instead it has provision for electronically credit or debit funds from individual’s or company’s deposit account. This type of processing helps the merchants as they can directly debit the amount from the consumer’s bank account. Additionally the merchant can accept the payments even through phone, in store or online. Then he can setup a recurring billing for those customers who pay either annually or monthly for business service or product.

The other credit card processing providers charge certain percentage in total transacted volume. But the ACH transactions are less expensive as they charge a fixed fee for transaction irrespective of its size. Then customers need not have to pay for using postage and checks. Both customers and merchant will be able to save lot of time by using eCheck processing services.

E-check processing is a kind of ACH transaction, which gives provision for merchants to receive paper check, scan it using check scanner and produce it for electronic payment. Thus it saves time especially for customers who shouldn’t have to run into banks or financial institutions. There is another way of processing an eCheck that is by providing information on paper check through the web based secure system. The customer needs to enter the bank name, routing number, and account number so that transaction can be submitted into ACH system. In this method one can accept the check through online and by phone.

ACH processing provides the facility of scheduled payments which helps in improving cash flow as the payments gets deposited in merchant’s account. It’s also beneficial to customers as they shouldn’t have to worry on paying late fees.  The recurring bill system serves as core for ACH payment processing.

So the customer doesn’t need a credit card for online purchases. The ACH networked merchants or entrepreneurs will accept card payments with less transaction fees. Other than merchant benefits it could serve as an alternative for online payments. ACH payment processing effectively eliminates the cost relating to invoices, collection calls and other hassles especially during payment time period.

The merchants need to use ATM verifying software in order to protect their business from bad eChecks. ATM Verify is a software tool used to verify check used for payments. The software uses the ACH networked database of banks and will search for account in order to issue e-checks. In addition the software will determine if account is good or not; suppose if account is bad the merchant can deny e-check and ask for payment through other means. So it is best advised for any online business merchant to opt for ACH processing service.