ACH (Automated Clearing House) is an electronic network for financial transactions in the US. ACH is developed to processa great number of credit/debit transactions in batches.Rules and regulations that govern the ACH network are established by NACHA (The Electronic Payments Association®)and the Federal Reserve. Automated Clearinghouse Payments are the preferred choice for many merchants since they don’t cost too much to process.
ACH Payment Processing
Electronic payments processed through the ACH Network in 2016 accounted for 25.6 billion transactions, according to NACHA. This is up 5.3% over 2015 volume, and it’s the 3rdconsecutive year in which volume increased by a billion transactions or more over the previous year. Moreover, $43.7 trillion was transferred over the ACH Network in 2016, which is up 5.1% compared to 2015.
Online bill payment, mortgage and loan repayment, and direct deposit of payroll are the most common uses of ACH. ACH payments can be described as anefficient and cost-effective alternative to paper checks and credit cards.On the Internet, ACH is mainly used for person-to-person (P2P), business-to-customer (B2C), and business-to-business (B2B) payments.
ACH payments are initiated when the customer gives an originating institution, corporation, or other customer (originator) authorization to debit directly from his/her checking or saving account for the purpose of bill payment. Authorization must observe the requirements of the ACH Operating Rules and must be either written and signed, or electronically displayed.
ACH transactions can be processed through:
- Check scanner
- Virtual terminal
- Website payments
ACH payments have the following benefits:
- Your customers get an alternative to credit cards and checks
- Offer lower-cost payment as compared to checks or credit cards
- Faster payments as compared to using checks
ACH Check Processing with EMB
To start processing ACH transactions, you should partner with a reputable merchant account provider like emerchantbroker.com. EMB, a reliable and experienced payment processor and business funding provider, offers ACH check processing to its clients at the most competitive rates and no setup fees. EMB, which is voted the nation’s #1 high risk processor, is rated A+ by the BBB and A by Card Payment Options. Moreover, emerchantbroker.com is among Inc. 500’s Fastest Growing Companies of 2016.
Thanks to ACH processing offered by emerchantbroker.com, you can get paid faster, cut payment processing fees, and improve cash flow. Being able to offer flexible online payments, create reliable revenue, and build trust with a secure payment gateway, you get an opportunity to
earn and keep loyal customers.
Businesses, regardless of their size, can choose ACH as an option. Businesses that have higher volumes, will be required to pay less. According to NACHA, average costs are nearly 11 cents per transaction. Small businesses may be charged 3-5 times that much.Sometimes, they’ll be charged per-transaction, a monthly fee, or a percentage of each payment.
Author Bio: Electronic payments expert, Blair Thomas, co-founded eMerchantBroker in 2011. His passions include writing/producing music, and travel. eMerchantBroker is America’s No. 1 ACH check processing company, serving both traditional and high-risk merchants.