Recently, companies of all sizes and from all industries have been realizing the benefits of ACH (Automated Clearing House) electronic payments. Below are five reasons how ACH can help your business.
Better Cash Flow
ACH payment recipients no longer have to hear, “your check is in the mail,” as funds are received on the effective date and no later. As an ACH payer, you are able to hold your funding pending the payment due date. No matter what side of the payment you are on, ACH can provide a more predictable cash flow.
Distributing and receiving paper checks can incur costs for both the payee and the payer. Processing expenses such as check printing, postage, as well as cash checking fees can all add up. These expenses disappear when using electronic payments via ACH. In addition, electronic invoices are available with each ACH payment.
Using ACH as a payment method provides increased flexibility and convenience. Payers are able to schedule debits and credits automatically and can also approve ACH payments online from anywhere. This means you no longer have to be tied down to the office to sign checks. Electronic direct deposit is also more convenient for employees, as they will no longer have to wait pay a visit to the bank in order to cash or deposit their paycheck. However, companies that choose to use such ACH networks for financial transactions are subject to NACHA regulations (visit this page for more information) and must adhere to its operating rules and guidelines in order to ensure that the data is secure.
ACH payments also make it more difficult for check fraud to occur. ACH provides maximum security by offering dual controls for vendor set up, which prevents payees from switching bank account numbers to a fraudulent account. ACH payment managers are also able to restrict payees’ access to the company’s record details, which keeps all payment particulars intact and secure. Paired with an email security system designed to recognize fraudulent invoices and phishing attempts, ACH payments can prove to be the safest way for business transactions carried out via the internet.
ACH electronic payments are an earth-friendly alternative to processing and distributing a large number of paper checks. Not only do electronic payments reduce consumption of paper, the environmental impact of transporting documents in reduced.
If your company is looking for a better way to issues payments, why not explore the benefits or ACH? Visit www.ach-pay.com to learn more about how ACH can help your company.