In modern times, accounts payable has producedvastaccomplishments in automating various financialpractices. Howevernumerousbusinesses have been left behind owing to the cost and difficulties of employing and operating the new technology available. Furthermore, the use of, paper statements,paper records and paper checksmagnifies the chancesof fraud and mistakes, which can cost the companyindispensable time and money.
One of the most straightforward yet important processes to automate,which also receives a strong return on investment isthroughadapting to ACH payment processing (Automated Clearing House). Countless businesses are presently using ACH payments, as it isextremelyeffective for businessessince it removes the obligation of paper checks, trips to the bank, obstructionin the mail, fraud and all the other disturbancesentwined with receiving and depositing your weekly paychecks.
Presented below are the leading benefits of adapting ACH payment processing into your business.
- Reduce Processing Time
One fundamental aspect about ACH payment processing, is that banks routinelyprovide them internal precedence, meaning that ACH payments are much more credible to get handled and processed before paper check payments. Additionally, ACH transactions have low contention rates as mistakes may only transpire due to one of three primary reasons: the sum was not the precise amount authorized, the payment was processed before the sanctioned date and time, or that the payment was not approved at all.
Alternatively, credit card payments may be disagreed upon for anassortment of reasons. Moreover, since credit cards have ahigher non-payment occurrence, banks may occasionallyrestrict the funds for weeks at a time. Utilizing and employing ACH payment processing awards its handlers much faster access to their funds.
- Cut Costs
While processing and dispensation costsmay be at variance, businesses can end up expending a considerableamountjust to process checks, and it is additionally morecostly for businesses that process credit card transactions. These costs may appearminor on a single transaction perspective, but they can accumulate over time to a substantial amount. In contrast, ACH payment processing is considerablymore economical per transaction processed, indicating that ACH transactions characteristically have the lowest costs associatedout of any other available payment method
- Enhance Efficiency
When accommodating to ACH payments, companiesare no longer required to depend on paper statements, paper checks, mailing costs and excursions to the bank. ACH processing can also automate billing payment and track ongoing and completed transactions. This not only simplifies the wholeprocess, but also saves money, time andefficiently eradicates the likelihood of human errors from the process.
- Added Security
In order to productively process ACH payments, customers or businessesare required to provide a bank account number, which is then encoded and entered into a safeguarded system that iscomparableto processing paper check payments. Conversely though, the practice of paper checks is considerably more insecure and liable to risks,as the checks are passed through numerous hands and is more liable to getlost or pilfered. These hazards associated are vastlyalleviated through the use of ACH payment processing as themoney is managed and transferred automatically, reducing thechances for frauds or misconducts to transpire.
If you’d like to learn more about ACH payment processing, get started by contacting a trusted ACH processor today.