ACH Payment Processing Benefits
As an online merchant, you may offer your customers the option to pay with electronic checks. If you do, then you also have options for how you want to process those checks. The Automated Clearing House (or ACH) is an electronic network for transferring funds. In the early 1970s, the ACH created a solution for merchants processing large volumes of checks. ACH processing allows merchants to process checks in large batches, whether they are accepting payments from customers or issuing paychecks to employees.
If you've never used ACH processing, here is how it works when accepting electronic checks:
- A customer purchases an item on your website using an electronic check.
- Before you can process the check, you need the customer's authorization by having them read and agree to a statement of understanding.
- Convert all of your electronic check transactions into ACH transactions.
- Submit your ACH transactions in a batch to your Originating Depository Financial Institution (ODFI)--a financial institution that supports ACH processing.
- An ACH operator at your ODFI will send the transaction to the customers' Receiving Depository Financial Institution (RDFI)--their financial institution where they have their checking account.
- The customer's account receives a debit for the purchase.
- The funds transfer to your acquiring bank, and go into your merchant account until you receive your payout.
ACH payment processing benefits for your business
In 2006, merchants processed nearly 16 billion ACH transactions. With the rapid growth of the e-commerce industry, more businesses are turning to electronic funds transfer (EFT) for quick processing. With ACH payment processing, you will get:
- Fast access to funds--process within hours
- Saves you money in processing costs
- Allows you to set up recurring billing payments
- Eliminates the need for envelopes and postage, saving your customers money
- Environmentally friendly by eliminating the use of paper checks
- Convenient and reliable
- Improved cash management
ACH payment processing with Instabill
Instabill's high risk and offshore merchant accounts have ACH payment processing integrated into them. Just like with any form of online payment processing, electronic checks present risks of fraudulent customers.With our PCI compliant payment gateway, you can rest assured that your transactions will be in safe hands. We run a first-class customer service and risk management call center while also implementing a fraud prevention system.
- AVS checks
- Customer blocking
- Historical fraudulent customer database
For more information on our ACH payment processing benefits and services, call us at +1 800-318-2713 or contact us online today.
