The Ultimate Guide On ACH Debit For Business
ACH payments are secure, fast and convenient means of payment processing. ACH payments have shown an everlasting increment since the last few years and merchants are opting the ACH processing solution to gain an edge over the competitive market. ACH credit or ACH debit for business is an excellent option for merchants to diversify their payment solution. We at Quadrapay offers merchants an array of merchant services such as eCheck. ACH, Credit card Processing, Prepaid cards and more. It let merchants accept payments hassle-free. Moreover, in this article, we will talk about ACH debit for business and how it is different from ACH credit. We will also talk about ACH payment status that every merchant should know, so stay tuned!
What Are ACH Payments
An ACH payment is a type of Electronic Fund Transfer(EFT) and is the widely used payment instrument in the USA. ACH(Automated clearing House ) is an electronic payment method that helps businesses to receive payments directly from the customer’s checking account. The ACH payments are usually processed in batches through Automated Clearing House Network. The beauty of ACH payments is that it can be processed as a Lump-sum amount as well as recurring billing schedule. The fees or transactional charges to accept ACH payments are far lower than that of credit/debit card processing.
How ACH Debit And ACH Credit Different?
Merchants can accept ACH payments in two different ways, or we can say that ACH processing is of two types, i.e. ACH Debit or ACH Credit.
- ACH Debit: ACH debit is a type of ACH payment in which the customer gives permission to the merchant to pull out funds from his account. The authorizes the transaction, and funds get transferred from his checking account to the merchant’s bank account. ACH debit is usually used by merchants who offer recurring billing features or subscription-based payments. For example, utility bill payment, GYM Membership payment, weekly magazine, mortgages, insurance premiums are few of the examples of the ACH debit for business.
- ACH Credit: ACH credit is a type of ACH transaction in which a customer makes a payment to the merchant. It means a merchant does not request for the funds or pulls the fund from the customer’s account. A customer itself pushed the funds into the merchant account. ACH credit is usually used for the lump-sum payment or a one-time payment.
How ACH Debit For Business Help To Thrive?
- Subscription or Recurring Payments: Most of the merchants opt for an ACH Debit For their business just for the sake of subscription-based payments. It helps the merchants to split the bills into instalments. It helps the merchants to accept payments on time, and it is convenient for merchants also.
- B2B payments: ACH or eCheck is the widely used payment methods for Business-to-Business transactions. As per the report of NACHA, a governing body of ACH network reported that more than 45% of the payments in B2B are done by ACH payment method.
- High-Risk Merchants Are Supported: The challenge among the merchants from high-risk industries is getting a payment processing solution. ACH payments processing is easy to get and suitable for high-risk merchants.
- Virtual Terminal To Accept ACH Payments: Virtual Terminal is an easy way to accept ACH debit payments. Merchants fill in the customer’s details into the terminal and set-up the recurring billing cycle. It helps merchants to get paid on time.
How Does A merchant Get ACH Debit For Business?
To Start accepting ACH credit as well as ACH debit for business, a merchant needs to set up an ACH processing account with an ACH processor. Finding one of the best ACH processors can be tricky, but we at Quadrapay can help you with this. Follow the simple four-step:
- Fill the pre-application form available on our site.
- Get ready with your thriving business idea.
- Have all your documents ready.
- Enjoy smooth onboarding.
Once we receive your application form, we will get back to you to hear your thriving business plan. It will help us to understand your industry better so that we can provide exactly what your business requires.
Every Merchant Should Know About ACH Transaction/Payment status.
- Pending/Originating: The ACH payment has been initiated, but has not moved yet.
- Originated: Transaction is in the process but has not settled yet.
- Declined: transaction error or transaction not approved.
- Voided: Voided means that money will not be moved or settled
- Settled: Transaction successfully completed and settled.
- Charged Back: the reason could be insufficient account balance or suspended account.
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