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Category: ACH Payments

What are ACH payments?

ACH is a type of electronic payment that can be processed as a credit transfer or direct debit. ACH payments are sometimes referred to as eChecks, direct debit, or bank drafts.

ACH or the Automated Clearing House is the primary network used for processing electronic transactions between participating financial institutions. This network is run by the National Automated Clearing House. NACHA is an independent organization that is made up of a large group of banks and payment processing companies.

Accepting ACH payments will help you to reduce the costs of heavy processing fees by as much as 75% compared to credit card fees.  In addition to lower fees, you will find that accepting ACH transactions will help to reduce your time spent chasing down expired or declined credit cards. For those reasons, ACH has about a 10% greater success rate than credit cards.

Therefore, by accepting ACH transactions you can maximize your collection rates, reduce processing fees, and help to increase your bottom line for your business.

How do I accept ACH payments at my business?

In a digital age where both convenience and security are paramount, ACH should be of high consideration. With a few simple steps, you can start accepting ACH payments at your business in no time!

  1. Set up an ACH Account with GMSAt GMS, we will guide you through all the steps needed to accept ACH payments at your business. To access the ACH network, you’ll need to provide some basic business documents to get your account approved. Contact us today to get started!
  1. Request Customer AuthorizationYou must accept permission from the customer to debit their account before accepting any one-time or recurring ACH payments. This can be done by collecting a digital or physical authorization form. GMS will provide you with a sample copy if you don’t already have one!
  2. Collect the Account DetailsAfter the transaction has been authorized, you will need to make sure that all the account details have been collected; including the bank name, account number, routing number, and the customer’s name. You will only need to document this one time for recurring payments.
  3. Submit your Payment DetailsLastly, you will need to submit the ACH transaction to be processed through the ACH network. This will be done through a payment gateway, virtual terminal, software, or third-party method.
  4. Get Paid!After the funds have been collected from your customer, your ACH credit will be automatically deposited into your bank account. The ACH debit normally takes 3-5 business days to fully clear depending on the type of transaction. ACH credits can be made same day, next day, or as two-day payments.

 

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