subject: How Businesses Benefit From Ach Processing [print this page] In order for you to understand ACH processing, it is important for you to grasp the concept behind the Automated Clearing House. In essence, ACH is actually a network that enables consumers, companies and other establishments to make electronic financial transactions in the United States. Thus, if you own a business, you would be able to process electronic payments from your customers through this type of clearing house. If not for this system or network, online bills payments and certain bank transfers may not be possible at all. It is worth noting that, to ensure reliability and safety of all electronic payments cleared through this network, it is regulated by NACHA Operating Rules.
Basically, ACH processing makes it possible for online businesses like you to collect payments using the Automated Clearing House network. There are a lot of benefits from using such a payment processing solution. For businesses, this method is important in order to secure payments from customers faster and without hassles. With the help of such an electronic fund transfer system, actual funds can be credited to your business account almost instantaneously. You do not need to wait for the checks to be delivered to your doorstep nor do you need to wait for days to clear the funds. In the same manner, you also do not need to go to the bank and deposit the checks.
Another advantage that businesses can have if they use ACH processing is that it allows direct deposits for social security, tax refunds, payroll and other payments to the government. Such processing methods will surely save a lot of your company's time and resources. In the past, a company needs one whole department to process payroll and other employee benefits, but with the help of an easy and fast electronic processing system, the people needed to do the job of an entire accounting and finance department can be cut significantly.
Since ACH processing is done electronically, businesses do not need to process bad checks several times. Furthermore, this system or method is also exposed to fewer mistakes. More often than not, once you have already set up an account for a particular customer, processing of payments from that particular account will work seamlessly even for future transactions. During the time when clients wrote checks and mailed them to your company, a lot of things can go wrong. But with ACH system, your business and your customers are better protected.
by: Troy Truman
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