For too long, businesses have been relying on credit and debit cards to make and receive payments. But the tide is changing, and ACH Payment Processing is getting more and more popular as the days go on.
As ACH Processing solutions become more popular with customers, it’s only right that businesses start to reflect that in their offer to their clientele, to make sure they’re giving their base the best service out there. But how does ACH Payment Processing work, and why is it important for your SaaS platform? In this guide, we’ll tell you everything you need to know.
ACH Payment Processing: The Basics
ACH Payment Processing is about as simple as it gets. Whereas credit/debit card solutions work with card details, ACH processing operates via checking and savings accounts, allowing your business to provide an entirely new payment option.
Instead of the authorization process that credit and debit card payments undergo, ACH processing works using batches. Any transactions that you accrue over a day will be directed to the Federal Reserve, and then usually processed the next working day. Pretty simple, right?
Why Is It Right For Me?
ACH processing is particularly advantageous if you operate a business model that works on regular transactions. The main reason for this is the drastically lower transaction fee for ACH payments as opposed to credit card payments. Credit or debit card fees can set you back approximately 2.5% of your entire payment, and over time, this can seriously stack up for businesses.
Conversely, with ACH payments, your transaction fee could be as low as 0.3%. Over time, that can seriously stack up, especially if you’re retaining customers who are paying month in, month out.
There’s also the fact that ACH payments are typically far less likely to be declined. Think about it: Once you get a bank account, you’re likely to stick with it for a good few years, if not your entire life. Debit and credit cards, on the other hand, change hands with alarming frequency. This can seriously hamper recurring payments, and lead to sky-high rejection rates, creating nothing but headaches for your business.
What Are The Risks Involved?
Life is nothing without risk, and in the ACH world, it’s no different. Problems can arise when your business isn’t certain that the payment you’re taking is coming from an account that has the necessary funds, leading to the potential for “bad” checks.
Luckily, there are ways that you can safeguard against this, by using ACH Check Verification services. ACH Check Verification services are able to confirm a host of things, including whether an account has money currently in it, and whether the person who owns the bank account is the same person who uses your services. Although you’re not able to explicitly check the balance of a bank account, ACH Check Verification services go a long way to ensuring that your payments go smoothly.
What Kind Of Solutions Are Available?
Any payment company worth its salt will offer a range of ACH solutions for your platform. ACH Virtual Terminals are a key component of ACH processing and give you the ability to examine reports, liaise with customers simply and efficiently, and set up payments. ACH Integration also incorporates reconciliation and automation processes to make your business more robust.
ACH payments can also be made via the internet, over the phone, and via SMS message. For a full range of services available, contact your payment provider.
The Bottom Line
In a world where you need to be able to offer the biggest range of services for your customers, don’t let your payments fall behind. ACH processing is not only advantageous for you but is also smart for your business – and anything smart for your business will help it grow.
To discuss your payment options in more detail, contact Agile Payments today. Their team of industry experts will help you every step of the way, to augment your SaaS platform for your customers. Get in touch now.