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Benefits of ACH

What are the benefits of ACH compared to credit cards?

There are a number of reasons why businesses prefer ACH to credit cards and other payment options.

Here are the 4 major benefits of ACH processing:

Benefit #1 - Quicker access to funds: Often, your bank will not release funds from credit and debit card transactions for several days or even weeks. Credit card companies want to protect themselves from the risk of non-payment. If they release the funds to the merchant prior to a security period, the transaction could subsequently be denied by the credit card holder's issuing bank due to fraud or dispute. In contrast, Payment21® ACH processing is faster; funds are often released within 1 or 2 days.

Benefit #2 - More convenient: Purchases can be debited directly from your customer's checking accounts without any of the hassles associated with paper checks. As a result, Payment21® ACH processing is far more convenient.

Benefit #3 - More cost-effective: ACH transaction fees are lower than those for credit cards and other payment options. With credit cards, you pay a fee based on a percentage of the total transaction, with higher fees for bigger purchases. In contrast, ACH fees are fixed per transaction.

Benefit #4 - Easy recurring payments: There are millions of subscription-based businesses, such as publishers or online video and download music clubs that charge monthly or annual fees to customer accounts. Aside from a few administrative tasks, our recurring billing is automated. By setting up subscription-based billing through Payment21® ACH processing, recurring payments can be received more quickly and reliably at a much lower cost compared to other payment methods.

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