Advantages of ACH Transfers
ACH Transfers or eChecks help eliminate transaction problems for businesses and their clients. Paper checks are inconvenient because clients need to remember to pay the bill, and businesses must visit the bank each time they want to send a payment to a customer.
ACH or Automated Clearing House allows people to make electronic fund transfers between any two bank accounts, making them convenient and budget-friendly. NACHA (National Automated Clearing House Association) has reported that in 2020, the ACH payment volume hit 26.8 billion transactions with a value of $61.9 trillion. This guide examines the top advantages of switching to ACH Transfers.
Reduced Costs
Credit or debit card payments often charge a small fee for each transaction. This fee builds up over time, causing you to pay a significant amount for making simple payments. ACH reduces these costs significantly and does the same job without added fees.
While credit cards or debit cards charge a small fee per transaction, eChecks cost less because you only pay a fee on all transactions combined. This significantly reduces the processing fee and makes this payment method easier than checks.
Increased Security
The AFP Payments Fraud and Control 2021 Survey suggests that paper checks had the highest level of fraudulent activity in 2021. Mailed paper checks can be intercepted and toyed with easily, so switching to a secure alternative is a good idea.Some emails may never reach the client or get lost during transit.
Multiple people handle mail, which is why a paper check can easily be tampered with or even forged. Important or confidential information, including account number, name, routing number, address, phone, and email is also easy to lose.
Besides losing confidential information, businesses also face the risk of fraud as paper checks promote paper records or invoices. Clients aware of the hazards of accepting or sending payments via paper checks may not be willing to use this payment method. This can be a cause of concern for you as a business if you fail to offer various secure payment options.
Online payments cannot be lost or misplaced and are less susceptible to fraud or forgery. You may even be able to make your customers feel more satisfied and secure by offering ACH transfers.
Added Convenience
ACH is highly convenient as there is no hassle of carrying checkbooks, mailing checks, bank trips, managing paper invoices, or keeping paper files. Unlike paper checks, this payment method allows users to set up recurring billing if they feel there is a need. The added cost of labor is reduced, and time is eventually saved.
You can spend the time that is saved up on more productive tasks without having to worry about completing your payments. Reducing payment errors further improves client trust while allowing you to make payments swiftly at any time.
Eliminates Human Error
The Cost of a Data Breach Report of 2020 by IBM suggests that human errors or mistakes cause 23% data loss in companies. Businesses have lost around $3.3 million for every security breach in 2020, which shows that human errors can be a big problem.
Human mistakes are not easy to eliminate, so you need to opt for a method that reduces the chance of human error fully. This is where eChecks come in. ACH payments significantly reduce the chances of error as online transactions do not process incorrect data.
As fewer people deal with the transaction, they can easily be made more secure and confidential. Reducing human error means fewer losses for your business, increased client satisfaction, and more profits.
Recurrent Billing
Recurring bill payments can be a huge convenience. This option is perfect for business models that make use of subscription payments. This way, you can send bills to all your customers automatically every month without physically entering all user data each time.
Continuous transactions, late payments, and money flow issues can greatly bother businesses dealing with many clients monthly. Not only are ACH electronic transfers more budget-friendly, but they also allow you to select the recurring billing option for timely payments. Business owners can sit back and relax and watch payments flow in without having to constantly remind their customers or keep having to send a new invoice each month.
Processing Time Is Halved
The mailing time, check processing time, and other delays make accepting paper check payments lengthy and inconvenient. ACH payments reduce transaction time as funds are transferred electronically. These payments can be delivered faster than payments made via paper checks. A shorter processing time and confirmations on both sender and receiver ends make eChecks highly reliable and effective.
Clients Prefer ACH
The Federal Reserve Payments Study of 2019 states that paper check use dropped from 40 billion transfers to only 20 billion by 2018. Not only this, but ACH payments increased by 6% every year from 2015 to the year 2018. Nearly two billion new transfers were reported in 2020 alone.
The recurring bill option, quick transfer, reduced processing fee, less time, and elimination of conveyance costs and labor make eChecks very beneficial. Most customers trust businesses and feel more secure if they offer an electronic payment option. People also believe that your business is up-to-date and more modern if you offer them the latest options.
With most businesses offering ACH, failing to do so will make you look less of a competitor. It is an excellent choice for merchants and clients alike.
Endnote
Benefits like reduced fees, recurrent billing, and elimination of conveyance costs are only a few of the features you can enjoy once you switch to eChecks. This secure fund transfer option will allow your business to reach new heights and build upon customer trust.