When it comes to cash flow, ACH payment processing for small businesses gives you an edge over your competition. ACH, or “automated clearing house” payments quickly process transactions electronically. This eliminates the need for a paper check.
Merchants can receive funds much faster and easier than if they had to wait for a check to process. So how does it work? What benefits are there to using ACH payment processing for small businesses?
How Does ACH Payment Processing Work?
ACH payments are usually used to move funds from one bank account to another. You can use ACH for things like paying for a service or for payroll. The funds move through the ACH Network, with the funds deposited into the receiving bank account within a few business days. ACH, at its simplest, moves funds without needing to use a physical check, credit card, or debit card.
ACH payment processing for small businesses is particularly handy for paying recurring bills. Direct Payment via ACH is used for customers to pay for services. They can pay through ACH Credit or ACH Debit. ACH Credit pushes the funds to an account, while ACH Debit takes from the account. A customer would use ACH Debit for recurring bills they want to put on autopay, whereas they would use ACH Credit for making a one-time payment.
How Can ACH Payment Processing Help My Business?
ACH payment processing saves businesses time and money. You can track expenses and cash flow, especially if you use recurring billing or invoicing. ACH payments are a better alternative to wire transfers, since they’re free for customers.
ACH also is less expensive than paying with a credit card. For merchants, ACH costs less than $1 per transaction no matter the size of the transaction. Interchange rates for credit cards vary depending on the brand, but the more you process, the more you’ll pay if you use a traditional credit card processor that charges a markup. You’ll save on processing fees while tracking your incoming payments. You just need your customer’s banking information to use ACH payment processing.
How Do I Get ACH Payment Processing?
You’ll need to work with a processor to use ACH payments at your business. Payment processors facilitate the actual payment and deposit the money into your account. Using ACH payments lowers your processing costs.
If you use a subscription-based processor like Fattmerchant, you pay a one-time transaction fee no matter how big the transaction is. Whether it’s a one-time payment or recurring billing, you can set up ACH through a virtual terminal and accurately track your payments.
ACH payments are a secure way to get paid faster, and with Fattmerchant, you’ll receive funds quicker. It’s a smart solution for managing your business operations and your cash flow!
If you’re ready to see how Fattmerchant works for businesses, check out How it Works to learn more.