What Is An ACH Payment?

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What is an ACH payment


ACH payment is an electronic mode of payment transfer. This mode of transfer was initiated in the 70s. In the 1980 lot of third party ACH payment processing companies started to try their hands in this industry.

ACH transactions are a lot cheaper than credit or debit card transactions. The primary reason for the same is that the ACH processors do not have to spend money on the interchange cost.

ACH or Automated Clearing House is a well-known term in the United States of America. Merchants from different industries can use it for receiving echeck payments. Customers get the flexibility to pay over the phone or over the internet. Most of the third party payment service providers offer easy to use interface to the merchants and the customers.

Customers can swiftly initiate the ACH payment transaction by visiting the merchant’s website. Merchants who are running their business through Call Centres can also take advantage of ACH. A virtual terminal allows a merchant to submit the transaction information directly on the system after collecting the information over the phone.

This has truly revolutionized the way payment processing works for high risk merchants. High Risk merchants face the biggest problem in getting a Credit Card processing solutions. ACH can be a wonderful replacement. Ach processing for small business has already established itself as a dominating payment mode among small size high risk merchants in USA. Since these businesses always face problems securing a card gateway they prefer to use ach.

Most of the ACH payment processor does not charge any setup fees. They also happily onboard merchants from high risk industries. The merchant must have a registered company and a business bank account to accept payments from the ACH payment processing solution provider.

Bankim Chandra
Bankim Chandra
Bankim Chandra is a Merchant Account consultant. He works with merchants globally and helps businesses in getting reliable payment processing solution. He writes extensively on the internet about Payment Gateways, Credit Card Processing, Echeck Processing, Chargeback Alerts, ACH and Business Funding.