Accept ACH payments at your business!

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 Houses 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.

There are two main categories of ACH transactions: direct deposits and direct payments.

A direct deposit is any type of electronic transfer made from a business or government entity to a consumer, usually for payroll, government benefits, tax refunds, and interest payments.

A direct payment can be used by individuals, businesses, and any other organization that is sending money. Examples would be sending money to a friend, purchasing a product or service, and paying bills. 

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 GMS

   At 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!

2. Request Customer Authorization

   You 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!

3. Collect the Account Details

   After 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.

4. Submit your Payment Details

   Lastly, 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.

5. 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.

1.  Cost-Effective Payments

   ACH transactions are often more affordable than credit card transactions. Funds are transferred directly from one account to another. This results in lower processing fees and businesses can reduce their payment processing costs.

2. Increase your Efficiency with ACH Payments

   Since ACH payments are electronic, they are faster and more convenient than traditional paper checks. This makes the payment process simpler and reduces the time it takes to cash a check or go to the bank. ACH transactions can also be put on autopilot! After you collect an authorization form, payments can be made as many times as needed.

3. Enhance your Payment Security

   ACH transactions are one of the safest methods for accepting payments. ACH payments are subject to strict procedures and encryption protocols, which makes them highly secure.

4. Flexible Payment Options

   Businesses can use ACH transaction for various types of payments, including recurring, one-time, billing, and payroll. Unlike wire transfers, ACH debit gives you full control over the exact transfer date, frequency, and amount.

5. Higher Collection Rates

   By accepting ACH payments, you can increase your collection rates by as much as 10-15%. No need to worry about funds not being available due to credit limits or expiring cards.