Benefits of ACH Processing

By: Sara K | Posted: 14th November 2007

Automated Clearing House (ACH) is the name of an electronic network for financial transactions in the United States. ACH processing is a highly reliable and efficient transfer system governed by the NACHA OPERATING RULES in USA, which provides for the clearing of electronic payments. In developed countries these rules and regulations are defined by different regulatory bodies of the country.

ACH processing is an electronic payment network used by individuals, businesses, financial and government organizations. ACH payment possessing can process large volumes of both credit and debit transactions which are originated in batches.

Uses of ACH Payment Processing

    • Allows direct deposit of payroll, social security, other government benefits and tax refunds;

    • Direct payment of consumer bills such as mortgages, loans, utility bills and insurance premiums;

    • Business-to-business payments;

    • E-checks;

    • E-commerce payments;

    • Federal, state and local tax payments


How ACH Processing Benefits Big Companies and Individuals

    • Cheap method of transaction - ACH Processing also saves consumers an average of $85 a year in postage and up to $30 a year in check costs

    • Efficient and Fast - More efficient alternative to paper checks. ACH payment processing simplifies your life by taking the hassle of paying the bills and saves time

    • Reduces Payment Processing Expenses - We don't need to pay high credit card fees because ACH payment processing offers the same convenience with dramatic savings

    • Better option - ACH payment processing is another suitable payment option to offer to the clients, customers and donors. With 10 million credit cards less US households online it is clear that the impact of electronic checks on our business will be significant

    • Credit Card less people not to be Neglected - ACH processing enables us to deal with those potential customers who cannot pay by credit cards

    • Increases in Cash Flow - ACH processing helps the big companies recover their money easily and in a short period of time. This impact of electronic checks helps to improve the credibility of a company and brings more business.


With so many benefits, it is little wonder that most customers prefer to do business with companies that offer ACH payment processing.

Instabill offers you Offshore Merchant Accounts along with ACH Processing and various other Payment Processing options for all your e-commerce needs.
This article is free for republishing
Printed From: http://www.articlealley.com/article_247313_19.html
Back to the original article

Tags: electronic checks, payment processing, financial transactions, tax refunds, insurance premiums, paper checks, government benefits, government organizations, electronic payment, electronic payments, tax payments, regulatory bodies