Payment Technology

5 Benefits of Using ACH (Automated Clearing House) Processing

Moe Tassoudji
VP of North American eCommerce

ACH processing offers numerous advantages that can help many businesses improve their cash flow.

Credit and debit cards account for many of the payments your customers make. Still, you likely have customers—particularly business and government customers—who would prefer to pay by check, whether out of habit or due to the payment record it creates for them. If you are in this position, ACH processing can help improve your cash flow. All these benefits help bolster your fluidity and your bottom line.

1. Lower Fees

Every time you process a customer's payment, you pay a fee for that processing. ACH fees come in much lower than credit and debit card fees. You can pass some of these savings on to customers in your pricing models and still come out ahead with every ACH transaction.

2. Faster Processing

If you accept paper checks, you must wait for the check to clear before it hits your bank. ACH processing runs almost instantly, usually giving you access to funds from the transaction within 24 hours. Cash flow is essential for managing your business, from payroll to unexpected costs that arise. ACH processing helps you keep up with the speed your business demands.

3. Automatic Payment Setup

ACH transactions also make it easier for your customers to set up automatic processing for recurring purchases. When you have a subscription model, regular customer needs, or other recurrent billing, this can make life much more convenient for both you and your customers. Once you set up the process, it runs automatically until the customer cancels, giving both you and that customer a level of comfort with regular purchases.

4. Better Security

Of course, that comfort level only works if everyone involved feels like the transactions maintain security standards. ACH transactions immediately encrypt information as it is sent. While multiple people will handle a paper check and see the banking information printed there, an ACH transaction runs without that exposure. The opportunity for data theft is as close to zero as any payment process allows.

5. Fewer Disputes

Payment disputes and chargebacks are an area where ACH transactions are vastly superior to even credit and debit card transactions.

There are just three permissible reasons to dispute an ACH charge:

  • The transaction was not authorized, or authorization was revoked.
  • The transaction is for a different amount than was authorized.
  • The amount debited preceded the date of authorization.

This helps ensure that cash flow is secure, consistent, and reliable. Merchants retain access to the funds with fewer worries.

ACH payment processing may not come immediately to mind for business owners, but it serves as an effective, reliable means of payment. Not only does it add convenience for your customers, but it removes some worry from your plate too. Work with your processing partner today to make sure you are set up for ACH payments.

Nuvei’s ACH payments offer a secure, reliable, and fast way to transfer funds directly from a client’s bank account. Contact us today to learn more.

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Moe Tassoudji
VP of North American eCommerce
Moe is Nuvei's VP of North American eCommerce. He has over 15 years of experience in credit card and ACH payment processing and was previously COO of a boutique payments company, helping merchants transact globally.

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