Most of us are not used or acustomed to banking terminologies. So what are ACH Payments? ACH stands for Automated Clearing House and these are payments made tru this network. This is a secure payment network so rest assured, your transactions are safe, fast and error free.
To better understand, ACH payment processing is the electronic transfer of funds. No physical movement involved and no paperwork needed. Common uses of ACH payments are for online services. Other typical uses are for salary deposits to employees accounts and fund transfers from one bank to another. Since theres hardly any use of natural resources like printers, paper, ink; fuel and the transactions all being done electronically, it is considered as environmentally friendly, naturally efficient.
As with almost everyone who buys or shops online, it is important that the businesses we transact have high quality products, excellent after sales, budget friendly prices and ofcourse, ease of payments. The ACH payment system is one of the innovator for online payment solutions for companies, business owners and individuals. It enables them to accept payments and fund transfers tru credit cards and other types of cards such as debit cards without any problem.
Because of this, business owners can widen their customers including those with no credit card capability. ACH payments is starting to be one of the preferred payment system as businessmen have started implementing as their preferred payment system. It has made cash transactions and remittance processing much safer, smarter, and faster.
Additional security feature incorporated during monetary transactions is the MICR check. This added security feature has found great favor among banks. This feature had helped the banking industry, online business communities to move money around securely in less time.
Many banks issue credit cards to customers and act as issuing banks. These banks hand out cards of a certain brand, with Visa, MasterCard and Discover the most common. American Express is a little different — it acts as both the issuing and the acquiring bank and charges a single fee directly to the merchant but will administer the transaction through the acquiring bank so that a merchant can process American Express transactions through the same terminal as the other cards.
Any company that conducts business online and processes payments using credit card or bank account information must obtain PCI Compliance. The criteria for PCI Compliance was set by The Payment Card Industry Data Security Standard (PCI DSS) and was created to reduce fraud and ensure credit cards and ACH payments are processed in a secure manner.
Check to ACH:
The benefits of moving from check to ACH payments are many with a reduction in costs being one of the most significant. But for nearly all Payers, moving to ACH means gathering and storing supplier’s banking information. Securing this information is critical because a data breach has the potential to become a large liability.
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