The Benefits of ACH Payments
ACH payment services are more secure than checks and credit cards, and can save your small business time and money. Learn how.
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The Benefits of ACH Services for Small Business
Utilizing automated clearing house (ACH) services has become a necessity during the coronavirus pandemic. Many small businesses started using ACH to pay their employees via direct deposit as they started working from home. One small business we worked with got an overwhelmingly positive response from their employees and plans to continue offering this in the future.
These services allow you to send money directly between financial institutions without a paper check, credit card or physical contact. ACH payment services aren’t only for large businesses. ACH can save time and money for you and your team whether you’re a sole proprietor or running a business with 300 employees.
Read More: ACH provides online payroll services for small businesses
The Benefits of ACH For Business, Customers and Suppliers
Now, let’s dive into some of the ways ACH payments can make life easier for your business, your suppliers and your customers.
Faster than a check
Making and receiving payments by check takes a lot of time. You have to write out or print the check; then you have to sign it; then you have to get it to the person who needs it; then that person has to go through the process of depositing it into their own account or cashing it. By using ACH services instead, your supplier will receive your payment the next day, instead of needing to wait for a paper check to arrive and depositing it. The same goes for your employees on the payroll.
In some situations, it is easier for your customers as well. For example, if you are a rental property manager, allowing your tenants to pay rent with ACH can give you peace of mind knowing that those funds are going to be paid on time every month, and the tenants don’t have to try to remember to write a check each month.
This is especially convenient if you own property in another state. Waiting for a check to come in the mail can be a burden. With ACH, that payment can be made next day from anywhere in the country.
Cheaper than a credit card
For ACH payments, there could be a small fee but these are typically only a few cents, no matter the transaction size. A credit card, on the other hand, can charge a fee of up to 3% on each transaction. Going back to our property manager example, if your tenant is paying $1,000 with a credit card, the fee could cost $30. If you have 10 tenants all paying this way, that’s $300 per month in credit card fees that you either need to absorb or pass along to your tenants. Either way, someone is not happy about this. Allowing tenants to pay with ACH keeps more money in everybody’s pockets.
If you are able to pay your suppliers and vendors with ACH, it saves money on these transactions as well. Some suppliers may even offer a discount if you are willing to pay via ACH transfer.
More secure
Using ACH is more secure than paper checks, credit cards or wire transfers. When you write a check, your business’s account number is right there for anyone with the check to see. If the check gets lost in the mail or ends up in the wrong hands, your account could be compromised.
With ACH, you can set up multi-factor authentication for added security. So, even if your computer is hacked, they won’t be able to move any money without completing a second security procedure.
Get Started With a Treasury Services Representative at Northwest Bank
To get started with ACH services, you should connect with a treasury service representative at your bank. At Northwest Bank, we try to make your banking as efficient as possible, and we can help you identify the efficiencies available through ACH services.
Learn more about our treasury services and connect with a treasury services representative today to discover how ACH payments can improve the efficiency of your small business.