Whether you’re doing business across the country or in your hometown, utilizing Automated Clearing House (ACH) services to make and receive electronic payments can save you time and money. ACH services can be used for a variety of payments that occur regularly, helping to reduce strain on staff and resources.
ACH services connect financial institutions by using the Automated Clearing House Network. According to the National Automated Clearing House Association, the non-profit organization that oversees the ACH network, over 24 billion payments were processed over the network in 2019.
What Can Businesses Utilize ACH For?
ACH services can be used for many different types of payments internally and externally. Some examples include processing payroll through direct deposit, payments to various vendors, or paying loans or debt. Businesses can also electronically receive payments from customers or vendors they utilize to sell products or services.
What are the benefits?
There are many benefits for using ACH services to make and receive electronic payments. By making payments electronically, businesses can instantly reduce many of the costs associated with writing checks. This includes staff time, the cost of ordering checks, office supplies, and postage. While the cost of writing one check may be small, when a business must write hundreds or thousands of checks annually, these expenses can add up quickly.
The accuracy and speed of electronic payments are additional benefits. Payments are processed quickly and reach accounts after 1-3 business days, and they can also be scheduled at regular intervals. The ACH network is also secure and eliminates the possibility of checks being lost in the mail or stolen.
While there is a small fee to utilize ACH services, it’s a fraction of the cost of the traditional method of writing checks. The added benefits of efficiency and security also make it an attractive option for businesses to consider as they grow or seek ways to cut costs.
If you’re a business owner looking into the benefits of ACH services, talk to a Bank of Southern California banker today.