What It’s Worth

What It’s Worth

5 Ways Your Business Can Benefit from Using ACH Payments

Author: Lisa Steiger, SVP, Treasury Management Sales Manager
Published Date: 8/29/2019

Business owners have several options for sending and receiving payments, but more and more are using Automated Clearing House (ACH) solutions for this vital part of their business. ACH payments allow businesses to charge customers’ bank accounts directly, bypassing the need for written checks or debit and credit card transactions. This payment method can help you and your customers save time and money while increasing security and convenience at the same time. Following are five ways that ACH payments can help your business and boost customer satisfaction.

  1. Reduce Costs

ACH processing can be a real money-saver, especially for a growing business. Credit card fees are typically 2.5 to 3.5 percent of a transaction which can quickly add up. And the cost of a business check has been estimated to range from $4 to $20 when factoring in an employee’s time spent writing, mailing, and reconciling. On the other hand, ACH processing fees are usually less than $1 per transaction. As your business grows and the number of transactions increases, the savings provided by ACH can go a long way toward reducing your overhead.

  1. Manage Cash Flow

Whether receiving or sending funds, ACH payments allow greater control of your money and a more dependable cash flow. When customers use ACH to make payments, you don’t have to wonder when their check will arrive because the funds are transferred directly from their bank account.

When you use ACH to pay vendors or suppliers, you can schedule payments to process on the date they are due, allowing you to keep your funds in your own account for as long as possible. In both cases, you reduce uncertainty, maximize value, and simplify your accounts receivable and accounts payable functions.

  1. Add Convenience

More than ever before, today’s customers are used to paying bills online with the click of a button. ACH payments allow for recurring billing to automatically invoice your customers and receive their payments electronically to help avoid guesswork and ensure that their bills are paid on time. And as a business owner, in addition to the added reliability, ACH payments are less likely to be disputed. They can only be disputed if the payment was not authorized, was processed too early, or was for an incorrect amount, whereas credit cards are disputed far more often for any number of reasons. In addition, ACH payments settle faster than the five business days it can take checks to clear, giving you much quicker access to your money.

  1. Improve Security

Some customers may hesitate to provide their bank account information to your business, but if they’re sending you checks, this information is already included. And ACH payments add an additional layer of security by eliminating the risk of forgery or having checks lost or stolen. All ACH transactions are encrypted and direct, unlike check transactions which are more prone to be comprised. Protecting your customers’ identity and account information should always be a priority, and ACH payments help you do this.

  1. Protect the environment

Consumers and businesses are more environmentally conscious than ever before, which is one more reason to go green with ACH solutions. Since the transactions are completely electronic, ACH payments eliminate the need for paper invoices, checks, envelopes, and stamps, not to mention the trucks or planes needed to transport the mail.

Increase Efficiency and Convenience with ACH Payments

Business owners are always eager to find new ways to increase efficiency and provide simple, secure, and convenient payment solutions for their customers. With the right banking partner, ACH payments could be a perfect way to make your customers’ lives easier, while saving you money and time.

To find out more about how PlainsCapital Bank’s Treasury Management team can help you find the right ACH solution for your business, call 866.762.8392.

Tags: Commercial Banking