The E-commerce industry is booming and ACH/eCheck is playing an important role in its growth. The payment processing services of ACH/eCheck make business payment acceptance very convenient. It reduces the costs associated with the processing of paper checks. It allows you to accept electronic check payments which is very helpful for increasing the sales of your E-commerce business. ACH transactions not only grow business revenue but also increase customer satisfaction. Many ACH/eCheck processors accept recurring debit payments. You use the virtual terminal to electronically enter the check information. It eliminates your trip to the back for depositing customer checks.
The processing of ACH/echecks will benefit you in many ways. The process gives you twenty-four-hour access to online reporting which is very convenient for business owners. You do not get charged for automated recurring billing. The system is very easy to implement because no installation and upgrades are needed. As compared to credit cards, the processing cost is very low. The process and charges related to ACH/eCheck are very attractive for customers.
They are:
• Approval takes less than forty-eight hours
• No fees for early termination or cancellation
• No annual fee is charged
• Technical support is available twenty-four hours
Using credit cards is not the choice of all customers. It is something that all merchants must understand for improving their revenue. ACH/eCheck is a very secure option for payments for all those customers who want to avoid using their credit cards. It is very good for your online business because providing customers with alternative payment options only increases your potential customers. Most ACH processors will provide you with full transaction details and three to ten day settlement tracking. It is more than enough for expanding your market by diversification of your payments.
Accepting ACH/eCheck payments has many positive effects on your E-commerce business:
• You can access process reporting for the rectification of payment errors
• The acceptance time for check payments is reduced
• The credit rating of your business is under protection
• Reduced risks associated with the acceptance of physical checks
• Alternative for your customers who do not have credit cards
• More customers checkout, because of additional payment options
The way ACH/eCheck payments work is both interesting and simple. First of all, the customer makes a request for sending money to you for which he requires authorization. You authorize his request and provide him verbal, digital or written authorization for the payment. The authorization includes terms and conditions for the customer. In the next step, the customer logs his payment through the ACH/eCheck network. It sends the money to the receiving depository financial institution to process the transaction. You receive the funds and then send the service or goods to that customer.
An eCheck is an electronic check; which is a modern form of online payments. From the customer’s checking account, the money is electronically withdrawn and deposited into the business owner’s checking account through the ACH network. If you have a ACH merchant account, you as a business owner can withdraw money from your customer’s bank account for providing services or goods. The payment is released with the authorization of your customer. There are two ways a customer gives you authorization. The first way is by accepting the terms and conditions of your website. The second way is the recorded voice conversation between you and him.
The processing of ACH/eChecks is the same as the processing of paper checks. The only difference is the high speed of electronic check clearance. In the case of paper checks, the customer fills out the paper check and sends it to the business he needs to pay. In today’s modern era, technology allows customers to do the same process electronically which saves both time and paper. Some people think that EFT and ACH are the same thing. ACH stands for automated clearing house while EFT stands for electronic funds transfer.
The latter includes different types of financial transfers which are:
• Electronic benefits payments
• Direct deposits
• Wire transfers
ACH is an electronic network and many financial institutions in the USA use it for providing the payment processing infrastructure for various companies. There are differences and similarities among eCheck, ACH, and EFT. In simple words, eCheck is a type of EFT which uses the ACH network for payment processing. The payment is electronically withdrawn from your customer’s account and sent to your banking institution through the ACH network. It is then electronically deposited into your account. The entire process is like the paper check, but it is done electronically.
Business owners pay a small amount for eCheck payment processing as compared to credit card payment processing. Therefore, customers prefer eCheck payments for expensive items like car payments, mortgage, rent, fitness membership, and legal retainers. It is also a very popular type of recurring payment. Nowadays, many property managers ask tenants to fill out the form for recurring eCheck rent payments. It enables property managers to automatically deduct rent from the checking account of tenants every month on a specific day.
It is important for you to know that the clearing process for eCheck varies from provider to provider. The verification of funds takes from twenty-four hours to forty-eight hours after the initiation of transaction. If the funds are available in the payer’s checking account, the transaction is cleared within five business days. The funds are transferred from the customer’s account to your account. You must have an eCheck or ACH merchant account to receive electronic payment from your customers.

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