What is Payment by eCheck (ACH)?
We live in the information age. Practically everything seems to be done by computers these days. One more thing that many businesses are turning to on a regular basis, electronically speaking, is electronic payments for goods and/or services in the form of eChecks or ACH (automated clearing house) transactions.
Most businesses and consumers in the U.S. have made some sort of ACH transaction, even if they didn't know. It's what happens whenever a debit card is used to remove funds from a consumer's bank to pay for goods and services. eChecks are simply another means of achieving the same objective. Money from the consumer's checking account is used to fund the transaction.
Who Uses ACH Transactions?
Many people are surprised to learn that the U.S. Government and private sector businesses alike are the primary beneficiaries of the conveniences eChecks and ACH transactions provides. These transactions are used for a wide range of purposes such as:
1) Direct deposit of payroll
2) Direct payments for goods and services
3) Tax payments and receipts
4) Tax refund receipts
5) Business-to-business transactions for goods and services
The beauty of eChecks is that they are simple to use, offer a great deal of flexibility, and promise security to businesses and organizations -- many of which are missing with traditional check payments.
Why do Businesses Use eChecks?
While the reasons vary from one business or organization to the next according to the type of work they do, the value of payments they receive, and just how many of their transactions in a given month are check transactions, there are some common reasons businesses find it beneficial to accept eCheck payments in addition to -- or instead of -- traditional check payments.
3) Generates less waste / better for the planet
4) Promises faster receipt of cash
The benefits of accepting eCheck payments are many while there are added, unnoticed benefits to the businesses that accept them in reduced fees for storing and securing physical checks, the time delay in getting checks to banks and waiting for them to clear, and so much more. If you aren't accepting eChecks for your business already, now is the perfect time to find out how eChecks can benefit your business right away.