How to Make an ACH Payment: Backing Business Payments for Half A Century

by | Jun 1, 2023 | Payment Gateway | 0 comments

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how to make an ach payment

Automated Clearing House (ACH) payments are relevant and roaring in 2023. Nobody would have thought that. Businesses continue reviving their love affair with ACH payments to keep things simple and cost-effective. In an era where credit cards are the norm, the popularity of ACH underlines how technology makes space for other progressive techniques. Do you know how to make an ACH payment? If not, you’re about to find a new way of receiving and sending payments. Welcome to a world that made payments effortless in the last half of the century.  

You look at how Automated Clearing House payments work and figure that top services have a sense of simplicity. Professionals and businesses endorse it for its ease of use and lower rates. It is a transaction between two banks (Checking Accounts). Almost every Payment Service Provider (PSP) offers ACH payments. It tells us how crucial it is as a service. Small businesses find it indispensable. They find it useful, from payroll and bookkeeping to accounting. 

The best ACH payment processing for small businesses streamlines all kinds of payments. You don’t have to look for a separate service as it would complicate things. 

How to Make an ACH Payment and Which Industries It Serves Better

Selling subscriptions is way easier than sustaining them month in and month out. Retailers find that consistency is a massive challenge. Businesses struggle to hold onto customers after the first couple of weeks. Broken payments halt the process, and there is no way around it. Learn how to make an ACH Payment to lend your business a strategic edge.  

ACH Payments and Selling Subscription-Based Services

There are more chances of clients changing cards or running the expiry date. Do we change bank accounts frequently? You have a permanent fix to one of the most pressing issues of the subscription merchant account industry. If you still find payments broken, the problem is somewhere else. What does it tell you about business marketing? It is neither slow nor outdated. It is an ideal replacement for high transaction fees charged on credit cards. 

ACH Payments and Freelance Professionals

Businesses dealing with contractors or freelancers prefer ACH payments over credit cards. It is an easy-to-set-up service. The security aspect and other additional responsibilities make credit cards a cumbersome process. It serves both professionals and businesses to use ACH payments. They have more control over transactions. It helps to keep personal and professional expenses apart.

How to start ACH transfers

  • Ask for the bank account and routing number to send or receive payments.
  • Enter the details. (Check relevant information on the payment processing service dashboard).
  • Select the day of your choice for payment processing.
  • ACH transfers take place during business hours. 
  • The fee structure and the transfer processing time are service-specific.

ACH payment processing time is 1-2 business days. You can have the payments on the same day by paying extra. Banks provide free ACH payment processing, or they take a nominal fee. ACH transfers offer convenience and speed. You can avail of the same benefits of wire transfer but at a fraction of the cost. 

What do you know about types of ACH transfers?

ACH Direct Deposits: Small businesses or government institutions sharing payments with individuals fall into ACH direct deposits. As the term says deposit, you receive money in your account. It could be related to tax refunds, interest and annuity payments, government benefits, or paychecks.

ACH Direct Payments: Individuals or small businesses sending money through the bank are ACH direct payments. It could be about paying for a service. 

How does the ACH payment fee work?

There are situation-specific scenarios.

A) A contractor does not have to pay for receiving money if the business has a subscription to bear the costs. As a freelancer, the client manages the transaction fee.

B) The same individual needs to pay a fee that comes to around $1 or less for receiving ACH transfers. In this case, you pay the transaction fee.

A free ACH payment processing for small businesses if the party at the other end covers the cost. How does that sound? In other cases, it costs anything from $3 to $10. These meager figures attract attention as you pay manifolds for using credit cards or wire transfers. You don’t lose that much time even if ACH transfers take a day or two. It makes sense for small businesses to have ACH payments. You should have learned by now how to make an ACH payment.

Conclusion:

How to make an ACH Payment? You might love using credit cards or e-wallets, but ACH Payments haven’t picked rust with time. Small businesses prefer it for aligning things with accounting and bookkeeping. They can build a subscription-based model without the challenges faced using credit cards. Professionals charge their clients using ACH payments. They don’t have to chase clients every month. What is your excuse for using ACH payments?