ACH Processing

Since 1991, the use of ACH processing has grown by an impressive 15 percent annually. From direct debit to direct deposit, consumers have become increasingly comfortable with the benefits of electronic transactions. Beyond providing convenience and speed, they also save businesses a substantial amount of money.

Whether businesses accept credit cards or paper checks, merchants ultimately lose a certain amount of money to use traditional means of sale. Credit card companies usually charge fees to businesses for their use, while paper checks can be lost, stolen or even forged. ACH processing allows companies to set up recurring payments or debits automatically. In fact, consumers and businesses have become so comfortable with ACH processing that in 2004, over 12 billion transactions were processed electronically–and a projected 16 billion will be processed by 2006.

How does ACH processing work, and how can your company take full advantage of it? In existence since the mid-’70s, ACH processing was initially setup to counter the growing number of paper checks being processed. Initially limited to larger companies, the development of new, affordable software has now made it accessible to a wider spectrum of the business world. Nevertheless, since the ACH network is limited to financial institutions, the software selected must hold an existing agreement with a financial institution in order to route any transactions.

At Smart Payment Solutions, we offer companies flexible software which provides access to ACH processing. Easy to use and entirely secure, our software simply requires a computer with an internet connection. Obviously, costs for using ACH processing vary, depending on your volume. Even so, keep in mind that such transactions are far less expensive than using credit cards and will start saving you money immediately.

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