In today’s modern age of digitized payments, A clear majority of individuals and businesses are regularly using Automated Clearing House (ACH) and may not even realize they are doing so.
ACH payment processing is progressively becoming the dominant choice for both business and commercial payments to online merchants and consumers, allowing funds to be gathered electronically for both singular and recurring payments. This method involves directly debiting a customer’s bank account on an established date.
ACH is generally utilized by online merchants because ACH processing is very streamlined and effective while being a considerably cheaper alternative to conventional payment options such as paper checks and credit card. From the perspective of e-commerce, ACH payment processing is principally utilized for P2P, B2C, and B2B type of transactions due to its flexibility, precision, and haste.
How Does ACH Profit Online Retailers?
With ACH payment processing, online retailers can have more influence over payments, providing them the benefit of improved payment accuracy, straightforward forecasting, as well as quicker access to funds. ACH payments are predictable processed within three business days, allowing retailers to send-off their products faster and increase the rate of their turnovers.
Now e-commerce merchants can manage their orders quickly, which helps them enhance their customer retention rate. Where online purchases are concerned, customers are more liable to trust and conduct repeat business to an online merchant that agrees to their payment process while shipping their purchases faster.
How Does ACH Provide Value to Online Consumers?
A very commonplace reason as to why some customers are still uncertain when it comes to online shopping is the concern that their personal information might fall into the wrong hands. When using ACH payment processing, customers can now feel secure when making an online purchase. Since ACH payment processing is an automated payment process, there are less manual procedures involved, which will aid businesses in avoiding human errors and fraudulent activities such as having checks misplaced, damaged or stolen.
Apart from protected transactions, online customers will also receive their purchases faster. ACH payment processing supports in speeding up the item distribution process allowing customers to receive their products faster. As ACH payments are processed significantly faster than traditional payment methods, most of the products can be shipped within three or four business days.
For customers who want to steer clear of using their credit cards, ACH payment processing can be a great alternative payment possibility. As credit cards are a high interest-bearing payment device that often results in debt accumulation, an increasing number of people are now trying to reduce their credit card usage. On the other hand, ACH payments are backed up by an individual’s savings or checking account, online merchants don not require shoppers to have a credit card, providing their customers with an additional payment option.
It is evident that ACH payment processing is the superior choice when making online payments. Businesses should start considering implementing this payment method. Get started by opening an account with the best ACH payment processor.