As we observe the current cashless society situation, organizations are always trying to find how to make payments more effective and customer-oriented. One such solution is an ACH (Automated Clearing House) merchant account in which a High Risk Credit Card Processing can qualify for. It has been good to note that more and more clients are adopting the ACH payments since they are secure, cheap, and ease to make.
What is an ACH Merchant Account?
An ACH merchant account is a production that businesses use in processing Online transactions through the ACH network. ACH network is an electronic payment system that enables payment of checks through computer notification of transfers between banks. It should also be noted that while most card-not-present transactions like credit or debit card transactions, for example, rely on card networks, ACH payments are mostly employer and employee direct bank to bank transactions.
How Does an ACH Payment Work?
The customer confirms the transaction by giving their bank details, normally through an internet based form or by phone. ACH merchant account is used by the business to start the transaction process. One other feature about ACH payments is that they are usually conducted batch wise. The transaction is sent to the ACH network and checked against its got one. In the case of ACH transactions, the ACH network negotiates the amount with the customer’s bank and passes the amount to the merchant’s bank.
Key Advantages of ACH Merchant Accounts
Another advantage of ACH payments is that the accounts are cheaper to process than those of credit or debit cards. Credit card processors are often expensive while ACH payments tend to have virtually no fees at all. ACH payments are very safe since they need the customer to approve the transaction first before he or she is debited. Compounding the problem, ACH transactions unlike credit card payments come under bank level of encryption therefore minimizing the possibility of fraud.
Common Use Cases for ACH Payments
ACH is utilised in business to business credit transfers where companies require making payments or receiving payments from other companies, which are large and infrequent. Most companies take advantage of ACH to transfer salary payments directly into the employees’ bank accounts. ACH merchant account is used by most utility companies for direct billing where payment is transacted fast and secure. Businesses selling products on the Internet can opt for the ACH payments so that customers have numerous payment tools.
Conclusion
ACH merchant account works to assure the business with a means of accepting payments that is safe, affordable as well as very efficient. ACH as a payment method has check clear major benefits over traditional payment methods including lower charges, security, and are processed faster. From sole trader and online merchants to large businesses, businesses can improve the overall user experience and tailor their payment methods to improve effectiveness by including ACH payment processing.
