Explaining Ach Processing

By Author: Simms Jack
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Offering consumers a wide array of online credit card service alternatives could be the difference between a customer bringing their business to you or taking their business to a competitor. By offering non-credit card payment options such as ACH processing your customer base won't have to worry about stacking up debt on their credit cards. Following is a brief introduction into ACH processing.

What is ACH Processing?

ACH processing allows funds to be electronically debited or credited to a company's or individual's deposit account within a few days. ACH processing enables you to debit customers directly to their bank accounts; accept payments by phone, online, or in-store; set up recurring billing; and convert paper checks into an electronic form. Ach processing can also help a merchant by allowing payments to be made by people without a credit card.

ACH Processing Saves Money

Unlike credit card processing ACH processing transactions are a less expensive option for the merchant because they usually take one low fee per transaction. ...
... In addition, customers won't have to pay credit card interest rates or the fees associate with using paper. Also, by using ACH check processors both customers and merchants can save money by saving the time and hassle often associated with paper checks. ACH check processors clear faster and have bank priority over paper checks.


Rules and regulations that govern the ACH network are established by NACHA (formerly the National Automated Clearing House Association) and the Federal Reserve. In 2010, this network processed an estimated 19.4 billion ACH transactions with a total value of $31.74 trillion. ACH check processor are widely used with a few of the uses detailed below:

Business-to-business payments.
Direct debit payment of consumer bills such as mortgages, loans, utilities, insurance premiums, rents, and any other regular payment.
Direct deposit of payroll, Social Security (United States) and other government payments, and tax refunds.
E-commerce payments.
Federal, state, and local tax payments

How Recurring Billing Can Help Your Business?

One of the key benefits of ACH processing is that you can set up recurring payment options. Recurring billing is hugely beneficial for every business. Through your ACH processor you have the convenience of scheduled payments that will help improve cashflow by having payments automatically deposited in your account. In addition, if electronic invoicing is set up with the system, time and money will also be saved by not having to worry about manually invoicing customers.

High Risk ACH

Just as with credit card processing accounts a business may be considered high risk and because of that banks may not allow a business to open an ACH account. Business involved in mail order sales, web design, telemarketing or adult industries, to name a few, are often considered at a higher risk for charge backs and cancelled sales. American Merchant Systems has specialized in high risk merchant account since 1999. American Merchant Systems represents 25+ different ACH processing sources, including ACH processors, that can help your company benefit from this important technology.

For more information about this high risk merchant account plase visit a www.amsvisa.com