Ach Processing And Remote Deposits Are Time-savers

By Author: Julia Bennet
Total Articles: 1387
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Electronic payments made through the Automated Clearing House Network are called ACH payments. This type of payment ensures a reduction in accounting errors, faster transaction times, and resource savings. ACH processing is used by efficiently-run businesses who want to offer prime service to their customers and make things easier in their accounting department. Remote deposit capture enables the direct deposit of a check into a bank account without having to physically travel all the way to the bank. Such time-saving methods help companies to run at higher efficiency and keep up in today's fast-paced business world.

ACH processing helps businesses to benefit in many ways. Timing is everything and this type of payment helps conserve the man hours that would otherwise be spent traveling to the bank and managing the formalities required to make a payment. Writing out checks for your payable accounts is a precision job and a mistake would lead to more than one hassle. The chances for technical errors are greatly reduced with ACH processing. Set up this system within your business so that you and your clients have the technical ...
... ability for all transactions to go smoothly. Accounts payable, receivable, and collections can all be automated with this system.

Remote deposit capture was legalized with the Check 21 Act. In this method, the image of a check is scanned and sent to the bank where the amount is to be deposited. The advent of this method was brought about to ensure easier and faster long distant transactions. The remote deposit capture enables hassle-free money deposits to take place even in the face of any disastrous situation. Bank customers who get paid by check can now scan an image of any check and send it to the bank. This can be done only by banks that allow remote deposit capture.

ACH processing requires a per-transaction fee that is paid at the time of service. Viable businesses that are rolling in the black greatly benefit from this service as much of their accounting time is freed up to focus on other matters. The pending time on a remote deposit capture is 24 to 48 hours and is therefore not the best option in a dire emergency. However, if a payment is made via this process, the customer bank has the option to withdraw the money that has been paid. The moderate pending time allows for analysis in order to avoid any fraudulent practices.

Transferring payments from one account to another can be conducted to serve a number of purposes. This method helps customers to pay service providers, employers to direct deposit salaries into employee accounts, and businesses to pay vendors and suppliers when applicable. The tracking of finances is also made easier with the help of ACH processing. The categorization of the transaction becomes easier with the help of financial software. In this type of payment, the paying party's name is shown instead of the paying institution on the statement.

Do you want to avail ACH processing? To know more about ACH payments and remote deposit capture, contact us. We will be happy to help.