ACH processing offers dramatic reduction in your processing cost and helps increase your sales. The implementation of ACH has helped many businesses set up recurring payment options for their customers.

More and more businesses are now using ACH processing to collect online payments from their e-commerce business websites rather than accepting debit and credit cards. Over the last few years, ACH processing has become one of the most popular methods for businesses to accept and make payments. It is cheaper and more reliable than the other payment options and it also helps save transaction costs.

Since 1970’s the ACH processing network has been used by many individuals, companies, businesses and financial institutions. Also referred to as an EFT (Electronic Funds Transfer), the ACH transfers funds electronically and processes them in a batch. The central clearing facilities for the ACH processing operators are the Federal Reserve and Electronic Network Act, these financial institutions help to transmit and receive the ACH entries.

ACH Processing for the growing needs of your Business

ACH processing offers various benefits over credit cards like discount rates, lower chargeback, reliable and stable services, no reserves, recurring billing and offers hassle free solutions. ACH processing is known to improve sales by at least a 20%, especially because it is preferred by all those who do not own a credit card and are therefore unable to pay for the purchases products or services, helping your company convert a significant amount of the US population into customers.

ACH processing includes:

• Direct deposit

• Social security

• Electronic funds

• Tax refunds

• Direct payments

• Consumer bills

• Loans, Mortgages and utility bills

• Insurance payments

• Local, federal and state tax payments

• Business to business payments

It is through a series of implied and explicit agreements that the ACH processing network functions. These agreements are made with the participating depository financial institutions that comply with the NACHA (National Automated Clearing House Association) operating rules and these allow the ACH network to function safely and efficiently. With the ACH network, funds are transmitted and processed electronically into an individual’s or company’s deposit account. The funds are either credited or debited and the deposit accounts they are processed into may include accounts that are either saving, checking, loan based or based on the general ledger of the financial institution usually on the behalf of the various companies or individuals who are utilizing the electronic payments.

The ACH processing options help provide better cash management capabilities to all who use it, thereby offering better and traceable ACH transactions. Due to its reliable and secure method, there have not been any reports of missing funds yet in relation to the ACH processing in all its history.

Merchant Accounts with Instabill offer ACH and Real-time Processing.