4 Reasons Businesses Should Shift To ACH Payment Processing

ACH Payment

Thanks to technological advancements, customers will usually have several ways to pay for goods and services. The popularity of specific payment methods such as paper checks, credit, and debit cards has grown exponentially over the last few years. They have simplified the payment process, significantly improving convenience and, in turn, customer satisfaction.

But why are businesses looking for other payment methods? One of the main reasons is the high processing costs associated with the payment methods mentioned above. This has led to the development of more efficient payment methods for businesses, with automated clearing house (ACH) payments being one of the best examples.

The following article discusses what you need to know about the ACH payment method. You’ll learn what ACH payment is, reasons why you should consider shifting to this payment method, and much more.

What Is An ACH Payment Processing?

ACH is a type of financial network for digital payments and money transfers. Also known as a direct payment, ACH allows businesses and customers to deposit funds from one bank to another, reducing the need for credit and debit cards, checks, and cash.

This payment method has been around since the 70s. But wasn’t until recently that most firms considered shifting to this payment processing. It is mainly used by government agencies, business-to-business transactions, and companies accepting international payments.

There are two different categories of ACH payments:

  • Direct Deposits: payments made by a business or government to consumers. It includes payrolls, refunds, interest payments, and more.
  • Direct Payments: funds for making purchases such as goods and services by consumers or other businesses.

How Long Does ACH Payment Processing Take?

An ACH payment process may not be instantaneous. It usually takes more than three business days to appear in your bank account. Factors such as the bulk payment process and the time you submit the ACH file to the bank may influence the length of the transactions.

Why Should You Consider Shifting To ACH Payment Processing?

The following are the reasons why you should consider using ACH for your business transactions:

Lower Processing Cost

Although credit and debit cards allow customers to pay for goods and services from the comfort of their homes, there are higher processing fees associated with these payment methods. But did you know ACH payments may have a lower processing cost than paper checks, credit, and debit cards?

With credit card payments, the cost is calculated as a percentage of the transactions. While paper checks have the lowest processing fees, you’ll end up spending more due to time and labour expenses. ACH allows all of your transactions to be added up through a clearinghouse, reducing the overall processing cost. This means ACH payment is the least expensive payment method.

Better Security

Security is an important factor in transaction processing. In paper checks transactions, the document is at risk of fraud and other issues such as loss. Because of this, the customer may be reluctant to pay using a paper check, affecting your business processes.

Fortunately, ACH payments are more secure than paper checks. This is because the ACH file can’t be lost in the mail and has no intermediaries, reducing the risk of fraud and manipulation. Due to improved security, the customers may be more willing to conduct transactions with your brand, increasing your potential revenue.

Less Environmental Impact

More and more people have realized the need to conserve the environment in recent years. For this reason, shifting to ACH solutions will make it easier for you to go green. Since the transactions are completely electronic, this will reduce the need for paper, protecting the surroundings. Using an eco-friendly payment method will improve your reputation, leading to higher customer flow.


Improving the convenience of payment methods may play a huge role in improving your business operations. Integrating an ACH payment into your business may be convenient for both you and your clients.

Unlike ACH payment, using paper checks will require customers to carry their checkbooks around or send cheques in the mail. Using an ACH payment method, they can easily conduct a safe and efficient international payment or recurring billing from the comfort of their homes.

As a business owner, using the ACH payment method, you won’t have to go to the bank to check for transactions. This will save you a considerable amount of time. You can utilize the saved time to deal with other important business operations such as administration, improving the efficiency of your operations.

Bottom Line

As discussed above, ACH payment could play a huge role in improving the efficiency of your business operations. You should consider conducting extensive research to learn more about your customers. This will make it easier for you to integrate ACH payment with other efficient payment methods, improving customer satisfaction.