The ACH network is comprised of over 130 million bank accounts in the U.S. and represents a popular and cost-effective alternative payment method for many consumers and businesses in the country. Now, with Checkout.com, merchants can offer their customers ACH payments as another way to pay. ACH Payments is just the latest addition to Checkout.com’s suite of alternative payments methods. Due to lower processing fees compared to other payment methods, ACH is ideal for merchants processing high-value payments as well as those that process recurring payments like utilities, insurance premiums, car installments, rent payments, gym memberships, and many more.
Benefits of ACH Payments
Automatic Clearing House, or ACH, payments offer greater convenience to your customers by allowing them to either make a one-time payment or set up recurring billing. With recurring billing, consumers can eliminate the stress that comes with remembering to make a payment thus avoiding late fees; and businesses can ensure more on-time payments from their customers, managing better cash flows and balance sheets. ACH Payments also allows businesses to remove the inconveniences associated with cash or physical checks including postage, labor, longer processing times, or lost checks or cash – gaining efficiencies and saving overhead costs.
Moving to electronic payments is also more secure compared to check or cash payments. According to the 2019 AFP Payments Fraud and Control Survey Report, “checks continue to be the payment method most impacted by fraud activity in 2018” with 70% of organizations reported being exposed to check fraud.
Why accept ACH Payments?
ACH Payments utilizes the ACH network which coordinates electronic payments and automated money transfers. ACH is a way to move money between bank accounts without the need for paper checks, wire transfers, credit card networks, or cash giving merchants the ability to debit an amount directly from a customer’s bank account. According to NACHA, the organization that governs the ACH Network, the value of ACH payments reached $51.2 trillion in 2018, a 9.5% increase over the previous year and marks its sixth consecutive year-over-year growth; evidence that ACH Payments continues to play a vital part in the U.S. economy. As ACH popularity grows, businesses that do not accept ACH payments risk missing out on substantial revenue opportunities from customers who prefer to use this payment method.
Through Checkout.com’s Unified Payments API, merchants can easily add alternative payment methods like ACH Payments to their checkout flow. To learn more about ACH Payments, visit our ACH Payments documentation orget in touch with our team of payment experts today.
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