Differences Between Credit Card and ACH Payment Processing
April 8th, 2011 | 
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A majority of business owners know about the Automated Clearing House, which is more commonly known as ACH. Since about 43% of households in the United States have used this payment method for utility bills, you can bet that if Automated Clearing House payment is an available option for your customers, your loyal client base will also grow. Basically, ACH is a countrywide network that process electronic financial transactions. You should not worry about the safety and security of this efficient and reliable network because it is governed by the National Automated Clearing House Association, the body that upholds the NACHA operating rules as well as supervise all ACH procedures and activities.
One of the misconceptions about ACH payment process is that it is similar to credit card processing. Well, the glaring difference between the two is that the former does not offer real time transaction authorization. It would just allow the electronic transfer of funds to a certain deposit account for a specified time period. If you avail of this processing service, your business will be able to accept payments via in-store transactions, telephone and the Internet. This service is not only convenient to you but to your clients as well. Imagine. You can automatically debit your clients’ bank accounts for recurring bills by means of ACH payment processing.
For businesses that accept credit card transactions, you probably know that in order to accept such transactions, you need to pay a lot of fees. However, with ACH payment processing, you do not have to worry about mountains of fees. Moreover, you can easily convert paper checks into e-checks, which are helpful if you are paying your creditors online or electronically. Truly, ACH payment processing is beneficial to your business, clients and creditors as well. It is worth mentioning that if you pay your creditors and business loans using this payment processing option, your credibility among financial institutions and suppliers will be stronger.
Finally, you also need to know that ACH is more reliable and stable than other merchant accounts that process credit card transactions. If you have an online store, the stability of your payment system is of utmost importance. You will surely lose a lot of money if your merchant account does not provide you a consistent and efficient service. Besides, a huge number of people do not own credit cards or refuse to use one. So, if you do not provide alternative electronic payment options to your customers, you also stand to lose sales.
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