There are a lot of payments trends to keep up with today, which makes it hard to keep track of which methods are best. But there’s one three-lettered trend that should catch the attention of your business: ACH. More specifically, ACH and other alternative payment methods.
ACH payment methods have been gaining ground as financial organizations and banks have put more weight into sending and receiving money to and from their customers faster. In most cases, consumers expect money to move to and from their account in a matter of minutes, which is why ACH payment methods have caught on.
But from a business perspective, why do ACH payments really matter? Let’s break down the benefits.
Better Payment Reassurance
Just as every customer wants to know when their payment is being processed, every business wants to know when the money will actually show up in their merchant account. ACH payment addresses this common pain point.
Because ACH payment transactions pose a lower risk (verified by banks faster), and are disputed less than credit card transactions, your businesses has the advantage of knowing when you will be paid, and will be alerted faster if there are any payment issues.
Less Paper, More Convenience
What business doesn’t want to get rid of the paper trail that comes with writing invoices or issuing checks? Not only do ACH payment methods allow for you to skip those unnecessary trips to the bank, the ability to process ACH settlements multiple times a day provides for a more convenient way for you to stay on top of balancing your books — in near real time.
Ditch The Fees
Every business owner feels the sting of credit card fees. While that is considered the cost of doing business today, ACH payment offers alternatives to interchange fees. In some cases, ACH payment rates are less than credit card fees since the payments themselves are processed through an electronic network in batches.
Recurring Billing Made Better
If you’re a business that manages subscriptions, has recurring billing and processes automatic payments, then ACH payment methods may be able to solve a lot of the common friction points you deal with on a regular basis. ACH payment can be automated and made simpler from start to finish. This means no more manual processing of those recurring payments, which leaves less room for payment processing errors.
A Safer Route To Travel
While ACH payments used to move slower across the payment rails, causing delays in the process, advancements in same-day ACH payment have been a game changer. Thanks to better encryption technology, ACH payment can better protect your payments than when dealing with old-school paper checks.
Convert Customers Faster When You Rely on Alternative Payment Methods
The last key feature of ACH payment methods is one that’s critical for businesses growing their bottom line. Consumers like choice when it comes to payment methods, and as a business operating in a modern payments ecosystem, you should be able to give them choice of how they want to pay.
Whether it’s through digital payment methods, credit cards or ACH payment, having a multitude of options ensures your customers feel you are catering to their needs. This, in turn, can drive up your customer conversion rates, increase retention and turn those customers into repeat buyers.
Anna Lothson is a content contributor for Payline Data. She previously wrote for PYMNTS.com, as a Sr. Content Producer, where she focused on financial services and payments innovation, fraud and security, emerging payments, and FinTech news, research and thought-leadership content across the payments industry.