The use of Automated Clearing House (ACH) is progressively becoming a renowned aspect of business transactions from the point of views of both merchants and consumers alike.In today’s modern age, the greater part of customer spays for their bills through conducting direct payments through the use of ACH, so why are there still businesses that rely on paper checks?
Owing to constantly increasing business operational costs and technological developments, businesses from all trades are now facing intense competition. To compensate with these adjustments, businesses must utilize the most effective systems for every aspect of business operations. One of the most fundamental and essential features to take note of are finances.
Below various reasons to why your business should eliminate the reliance on paper checks and instead deliberate on using ACH payment processing as your primary payment solution.
- Drastically Lower Processing Cost
Many businesses still complete their payments using paper checks, paying no attention to the exceedingly expensive delivery, printing and mailing charges. Theseexpenditures can amassinto a considerable amount over a duration of time, not to mention the increased used of manpower wasted on aspects such as writing and verifying each of these paper checks before they are sent off for distribution. By using ACH payment processing, companiesmay now apply to pay for all these expenditures electronically, reducing both financial and time related costs. Usually, the rates for ACH payment processing is considerably less than conducting payments through using a traditional paper check, making ACH payment processing aexceptional payment option.
2.Decreasing Time Loss and Accurate Tracking
Through using ACH payment processing, businesses can now efficiently lessen the time required to successfully process their ongoing transactions. Not only does this payment process decrease the “freeze time” of when both the payer and payee do not have access to the funds that is currently being transferred, the tracking of payments is also vastly improved with ACH processing. The businesses weekly cash inflow and outflow summaries may be received on a weekly basis through email, which allows your finance department to have more visible and informed data. This factor alone can be exceedingly beneficial to your business, particularly in situations where time-sensitive choices need to be made.
- Enhancing Cash Flow and Error Prevention
Profit is without doubttremendously important to your company’s strategy, but having a strong cash flow is similarly essential to your organization’s prosperity. By using ACH payments, your business can develop on error prevention as well as efficiently enhance your company’s cash flow. Organization of cash receivables and payables is avitally critical business process, and when using ACH processing, transactions may be performed and resolved within 24 to 72 business hours. Moreover, ACH payment processing involves very minimal human participation, which considerably decreases the likelihood of manual errors.
- Diminishing Frauds
Financial fraud can be a massive hazard to both the banking and financial industries. traditional payment systems such as paper checks involve too many activities that require manual obligations, such as the cutting of checks and delivery of mail. When it involves payments, having more human labor can result in an increased probability of human errors as well as a greater exposure to the chances of fraud. By utilizing ACH payment processing, businesses can now successfully reduce these unnecessary risks, as the transactions are dealt with automatically and electronically.
- Staying Ahead of the Curve
In today’s modern age, no matter which trade your business belongs in, technology is a progressively significant element to an organization’s success. Recognizing and implementing this fact will aidyour company in retaining market dominance. On the other hand, ignoring this may lead to a decline in competitiveness, and losing your customer base over time. Apart from the fact that electronic payments are accessible for your customers, both banks and financial institutes are also imposing this change through their structure and service developments, forcing businesses to adapt and integrate in electronic payment processing.
Your business should move to ACH payments processing promptly as it will only be more difficult to catch up if you delay the required integration more. Contact a trusted ACH payment processor today to obtain more information on how to start a high-risk merchant account with them.