ACH? Using ACH for Your Business
Beginning and seasoned entrepreneurs a like need sufficient funds to run a business. Often times, finances can get caught up in the red tape of a traditional banking system. Because traditional banks want to make certain that the originating funds are available to credit to the account of the recipient, it’s possible to encounter lengthy delays before the funds are made available to you. Further, you can meet with additional stumbling blocks such as checks returned for non-sufficient funds, sticking you with extra handling fees. Suppose this: You own a part-time business designing and manufacturing custom baby t-shirts and currently accept payments via check or credit card. On several occasions, a customer wrote a bad check. You need more supplies, but the customer is long gone with their purchase and you have no recourse and an operating budget that’s in the red. Using and automated clearing house (ACH) can help eliminate this risk.
ACHs are becoming an increasingly popular way to conduct business. The U.S. government and private sectors both rely on ACH tools to conduct financial dealing as seen with direct deposit paychecks or direct deposit tax returns. The theory behind using a clearing house is that funds are made available more quickly, often on the next business day, and the clearing house assumes the risk. A reputable clearing house that has been operating for a length of time, has a solid reputation in the business world, and has sufficient funds to assume the risk of returned checks or other bad payments can be an invaluable asset for business owners.
Revisit the above baby-t-shirt scenario. If an order comes in via your online store, the customer can have funds transferred directly from their account to yours without the hassle of a traditional banking system. It is likely the funds will clear before the order is even ready to ship out. That’s a situation that’s good for customer relations and good for your bottom line. ACH streamlines the process, but what about the customer?
As technological advances grown in leaps and bounds, you find customers apprehensive about giving out personal information such as bank account information online. There is a risk involved. Using a reputable ACH processing company can help put your customer at ease and make the transaction with confidence. Find out how ACH Processing for your business can help your business grow.