The Ultimate Guide On ACH Payments For Business
The ACH payments are the fast, yet one the most secured and convenient payment method. ACH payments have shown a great and everlasting on-going increment in usage of it over the competitive payment market. Day by day, more business merchants and customers are now using ACH over other payment methods. It is always recommended for a business to integrate diversified payment solutions. There are a lot of benefits associated with ACH payments for business. We at Quadrapay offers several types of payment processing and merchant account solutions for businesses according to the requirements.
What Does A ACH Credit Or Debit Mean?
ACH payments for business can be accepted in two ways. This includes the process of ACH Debit and ACH Credit.
- ACH Credit: ACH credit is a type of payment transaction in which the customer initiates the payment to the customer. The means a business merchant does not request for the transaction to the customer. A customer pushes the funds to the business merchant acquiring bank account by himself.
- ACH Debit: ACH debit is a type of ACH payment for business in which the customers grant permission on the request of payment from the merchant. After successfully completing the process of authorization, the funds get debited from the customer’s bank account, and the same gets credited in the business merchant’s bank account. This method of ACH debit is mostly used in regular subscription-based payments. Some of the examples of recurring billing are as follows:
- Utility Bill
- Gym membership payments
- Music/Movie platform subscription
- Weekly magazine
- Insurance Premium
How ACH Payments For Business Helps Them To Grow?
There are a lot of benefits associated with ACH payments for business. Some of the significant features of ach payments are as follows:
- High-Risk Business Category Support: There are a lot of payment processing methods available in the market. But in order to get the solution, a merchant needs to go through a lot of procedures. This might even get rejected in case of credit card payment processing. Also, in this case, a business merchant can smoothly go with the ACH payments for business to accept payments from customers under the high-risk business category.
- Recurring Billing Or Subscription Based Payments: This is one of the features that attract a lot of customers and business merchants to accept ACH payments for business. Subscription-based payments help a customer to quickly pay for the products and services purchased in a split amount for a fixed tenure. This also brings a lot of extra benefits to business sales. It attracts a lot more potential for a customer to purchase goods from your business. It also helps a business merchant to get the payment at the right time. It provides the convenience of payment to both; the customer and the business merchant.
- Business To Business Transactions: In the back time, paper checks were mostly used for payments between business to business payment solutions and are still being used until now. But as time passes and advancements in payment methods. Businesses now prefer to pay using Echecks and ACH to retrieve and transfer the funds between two businesses. This provides a simple and straightforward payment processing experience. There is also a proper track of all the transactions in bank statements.
- Virtual Terminal Support: A virtual terminal is an application or software which enables a business merchant to efficiently provide the details of the customers to the payment processor for initiating the transaction. This also makes it easier for a business owner for starting the recurring billing service.
There are a lot more benefits associated with a business who accepts ACH payments for business sales and transactions. You can contact us at [email protected].