Billing and payment should be easy to predict, even if your accounting firm has a large book of business. For firms looking to simplify their billing, using ACH payments is the best way to do it.
ACH, or “Automatic Clearing House” payments are direct transfers between bank accounts. These payments are routed through a network, pushing or taking funds to and from bank accounts. Funds are usually deposited within a few days. ACH payments have a few key benefits over credit card payments. If you send clients a monthly retainer or any kind of recurring bill, ACH is a faster, less expensive option.
ACH has much lower fees than credit cards. Instead of paying a variable percentage of interchange, ACH costs nothing to your client and less than $1 to you. And it doesn’t matter the size of the transaction, making it a great solution if you charge clients a sizable recurring fee. That variable percentage on credit card payments adds up quickly, especially if your processor charges a markup on top of interchange. With ACH, you’ll save big on processing fees with all the benefits of being able to track payments.
Greater Convenience for Clients
ACH transactions are great for autopay, since clients can set it up once and forget about it. All you need to do is set up their invoice schedule on a virtual terminal and choose ACH as the payment method. ACH autopay takes the hassle out of monthly or recurring billing for your clients. Once the payment goes through, they’ll automatically receive a receipt, making for easy record-keeping. And because it has much lower processing fees than credit cards, it’s a better choice for your firm.
Better for Bigger Transactions
ACH is a better choice than check or credit cards for bigger recurring transactions like retainer fees. Checks can bounce, and the time it takes to sort that out can impact your bottom line. And credit cards with their high fees can eat into your revenue. With traditional credit card processors, the more you process, the higher your fees are. But you can work around that by only accepting ACH payments on high-volume transactions.
Between ACH’s lower fees and convenience, it’s a great choice for accounting firms and their clients. Its advantages over credit card payments don’t only extend to clients – your firm reaps the benefits too. Interested in learning more about ACH? Check out our blog on ACH payment processing!