ACH transfer is a nationwide network that coordinates electronic payments and payments between bank accounts using account and routing numbers. ACH is suitable for batch, automated, and recurring payments. For this reason, more and more businesses are choosing ACH as their preferred payment method.
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Advantages of ACH
You can schedule ACH payments in advance. It allows businesses to spend less time writing, sending, and tracking checks. Also, vendor details only need to be registered once. After that, it is easier and faster to make recurring payments.
ACH payments are generally less expensive than checks, wire transfers, or credit card payments. According to The Association for Financial Professionals (AFP), writing a check costs $4 – $20. The average internal cost of sending and receiving ACH payments is $0.29, and the price decreases with higher transaction volumes.
Easy Income and Expense Tracking
ACH makes it easy to track income and expenses. When each payment is recorded electronically, the transaction history is likely to be shared and readily available to you, your accountant, and the bookkeeper. In addition, ACH payments simplify the reconciliation process. Collecting all payments in a single location avoids the hassle of trying to link paper invoices with checks.
ACH payments eliminate the use of paper and ink. Otherwise, they are required when printing, sending envelopes, and using stamps. It also reduces the carbon footprint associated with check delivery.
ACH payments pass through a clearinghouse that enforces rules and regulations when account numbers are kept confidential. For this reason, ACH payments are more secure than other payments. Paper checks that carry through multiple hands display bank details and are often lost or stolen. The Electronic Fund Transfer Act ACH gives 60 days to recover funds lost due to fraud or error, so if there is any problem with your payment, there is an opportunity to resolve it.
How Safe are ACH Payments?
The Federal Government governs ACH and the National Automated Clearinghouse Association (NACHA), a non-profit organization is monitors, coordinates, and facilitates the ACH network. ACH fraud and error are uncommon due to the defensive measures essential in the banking and fintech industry and the rule guide set by NACHA. Although the error rate is low, it is around 0.3% of all transactions. Every business owner must approve, understand and protect their payment process from minimizing risk and promoting security when using ACH transactions.
Make ACH Payments with Online Check Writer
When it comes to making payments for your business, Online Check Writer can be the solution you need. With our platform, you will have access to features including same-day ACH transactions, addenda records, and intensive tracking, all helping your business manage payments regardless of whether your company is large or small. Also, it doesn’t matter what type of business you’re starting up; Online Check Writer offers a program to use with almost any aspect of financial management that your organization may need.