is also known as e-check payment processing offers a flexible payment option for your business. Automated clearing house (ACH) payment processing services allow the merchant to accept check payment online that’s why it’s also known as an electronic check. ACH processing helps small businesses to increase sales and also by ACH, the businesses will be able to reduce costs associated with paper check processing. These payment methods help merchants to expand their capabilities and also by these modes of payments merchants are able to provide flexible payment methods to the customers.
SIMPLIFYING TRANSACTIONS: WHAT IS ACH PROCESSING?
You heard about the check payment process, the ACH payment process is also just similar to that traditional paper check process. For an immediate transfer, the payment is verified and sent electronically. Businesses often use ACH and credit card merchant processing as an alternative to accepting paper checks and other modes of payment.
With the iPaytotal’s ACH processing solution, Merchants can provide customers with another flexible payment option and accept electronic checks safely and efficiently. Similar to the paper check process, ACH payments are transmitted electronically for faster authorization and simplified transactions. Merchants save time and cut costs associated with traditional check payments, while improving customer service and increasing profits.
Benefits of ACH & Credit Card Merchant Processing
You can be able to increase your sales dramatically with merchant account because most people use the credit card and ACH payment processing as their first priority for payment today. By these form of payment mode, you’ll be able to feel your customer secure and you also feel secure. It will also allow you to keep track of your financial transactions and you keep better track of your financial transactions because when you sign up for merchant account for your business, you will receive a monthly statement of all your transactions and money you have received and these monthly statements are really very helpful at the time of tax.ACH & credit card creates several benefits for businesses. For example-
- ACH & credit card payments are easy to handle
- The main benefit is they are affordable (Affordability)
- Businesses are able to expand themselves because of the availability of long-distance payments
ACH PAYMENT PROCESSING FOR INCREASED CONVENIENCE
Accept online checks through iPayTotal’s virtual terminal, which allows E-commerce businesses to accept payments from any device with an Internet connection. Our ACH payment processing system integrates check readers to electronically deposit checks to Merchant’s bank account, eliminating trips to the bank to manually deposit checks. We work seamlessly with any bank to make sure your electronic checks are deposited safely and efficiently. With eChecks, you can access your ACH transactions online to better manage your business, your payments, and your customers.
There are two types of ACH transactions. One is in which money is credited (ACH credits), and another one in which money is debited (ACH debits). Use of ACH payments are as follows:
- Customers pay for the service provided by the service provider
- Funds deposited by the employers in the Checking accounts of employees
- To transfer fund from one bank to another by the consumers
- To pay suppliers for their products in businesses
- Funds sent to IRS or local or local organizations online by the taxpayers
Automated clearing house (ACH) is the third phase of transition by SDA, implementation of this third phase is taken place on March 16, 2018.
The first phase goes into effect in September 2016 but this phase is applicable only for credits, and only to transactions between US banks and another demerit of the first phase is it applies only to transactions less than $25,000.
If we talk about the second phase which initiated by SDA debits, now you can pull money from a customer’s account if you have proper authorization but the demerit of the second phase is that ACH debits can be used by US banks only and must be less than $25,000.
ACH sets up a more streamlined funds availability timeline which is required by Received Depositary Financial Industries (RDFIs). If you are interested in same day ACH, then we are here to provide you with high – risk merchant account for credit card processing.
AVOID ACH FRAUD WITH PCI SECURE ELECTRONIC CHECKS
Electronic data theft is becoming complex day by day, making it crucial for businesses to take the proper precautions when accepting credit cards and ACH payments. iPayTotal’s ACH payment processing products comply with PCI DSS (Payment Card Industry Data Security Standard) and are compliant, ensuring the highest levels of security to protect merchants, businesses, and customers from credit card and ACH fraud.
Advantages for small businesses are as follows:
- For debits, it enables to pay more quickly than any other mode
- Ach allows funds to be withdrawn from your account in 3 business days, it allows keeping your money longer.
- If you forget to make a payment, then it allows you to avoid late fees also
- Allows processing emergency payroll in any emergency cases
- Also allows to processing payroll for hourly workers
In market small businesses faces challenges daily, merchant account makes it easy for small businesses to accept credit cards so you can focus on growing your business.
ACH is a much secure and safe mode of payment because it is maintained by the NACHA national automated clearing house association and also regulated by the federal government. Having the support of the government and NACHA means it is the most secure and safe payment mode available.
7 Things You Should Know Before Setting Up ACH Billing
ACH Network: How it Works
How the ACH Network and ACH Payments Work: NACHA includes Members in the process of establishing Rules for the ACH Network, working collaboratively to create a clear picture of participant roles and responsibilities in the following ACH transaction process.
- An Originator– whether that’s an individual, a corporation or another entity– initiates either a Direct Deposit or Direct Payment transaction using the ACH Network. ACH transactions can be either debit or credit payments and commonly include Direct Deposit of payroll, government and Social Security benefits, mortgage and bill payments, online banking payments, person-to-person (P2P) and business-to-business (B2B) payments, to name a few.
- Instead of using paper checks, ACH entries are entered and transmitted electronically, making transactions quicker, safer and easier.
- The Originating Depository Financial institution (ODFI) enters the ACH entry at the request of the Originator.
- The ODFI aggregates payments from customers and transmits them in batches at regular, predetermined intervals to an ACH Operator.
- ACH Operators (two central clearing facilities: The Federal Reserve or The Clearing House) receive batches of ACH entries from the ODFI.
- The ACH transactions are sorted and made available by the ACH Operator to the Receiving Depository Financial Institution (RDFI).
- The Receiver’s account is debited or credited by the RDFI, according to the type of ACH entry. Individuals, businesses and other entities can all be Receivers.
- Each ACH credit transaction settles in one to two business days, and each debit transaction settles in just one business day, as per the Rules.
Third-Party Service Providers also perform vital services for ACH Network users such as Originators, ODFIs, RDFIs, and Receivers. When engaged and authorized, these Third-Party Service Providers can perform Network user functions, arrange transactions and otherwise increase efficiency for ACH Network participants.