Almost any business, on the Net or not, can benefit 
from using the ACH system to electronically move
money. Here are the top 5 reasons why:


1) Accepting checks via your web site.

Everyone knows you have to accept credit cards to
succeed online. The problem for many consumers is that
they either don't have a credit card or are at their
credit limit. The good news is that the vast majority
of these consumers have a checking or savings account
that you can access for payment.

Using ACH processing allows you to accept payment from
a checking or savings account electronically. Funds
are debited from the customer and credited to the 
business owner. Issues such as bounced checks or
closed accounts can be addressed through a combination
of fraud screening and collection tools. This includes
the ability to verify in real time that the account 
number the customer uses is valid and that there is
money in the account. 

There are many providers. PayPal, http://www.paypal.com
is perhaps the best known. There are more economical 
options available. The processor you elect to use
should have experience, a client list and easy to use
web site integration tools.

ACH processing can be much less expensive than credit 
cards. On a typical $100 transaction you could pay 
$2.75 or more for a credit card as opposed to .35 or 
less for an electronic check with no discount rate.
Using ACH processing can also save a great deal of
money if you receive an NSF (non-sufficient funds) 
check. Depending on what your bank currently charges
you can save 90% or more.


2) Accepting checks via phone.

NACHA (http://www.nacha.org) the governing body of
electronic transactions now allows a business to 
electronically debit a consumers account for 
payment taken by phone. Similar savings to web
transactions are possible. You can offer a new payment
vehicle to your customers and cut costs. Verification
services can reduce fraud and the charge back window
compared to credit cards is shorter.


3) Recurring payments.

If your site collects a monthly fee from consumers or
businesses and you only use credit cards you are both
paying too much and losing a significant percentage of
users who would pay electronically via ACH.


4) Electronic pay-outs.

If you pay affiliates by mailing checks you could be
electronically crediting their account. No postage
or invoice costs. Automation of payments is possible.

You can also pay employees and vendors via ACH.


5) Processing mailed payments.

Your bank probably charges between $10-$20 for
returned checks. You can convert these paper checks
to electronic transactions and get your money faster,
avoid expensive returns and trips to your bank. 


These are 5 solid reasons your business needs ACH 
processing. The bottom line is that it can save you
time and money while offering customers a payment
alternative.

Partner with a reputable ACH processor and you can 
enjoy the multiple benefits of ACH payment processing.
These include reduced costs and time as well as
automating manual tasks.


*ACH refers to the Automated Clearing House and
generically means money moves electronically.

©2004 by Wayne Akey