August 11, 2022
With half of the year behind us, it's time to ask yourself whether anything is missing from your payments toolkit that can help you drive more growth now and well into the following year. As you evaluate which payment options to offer your customers, have you thought of the value of adding ACH payments into your repertoire of payment acceptance channels?
If not, you may want to consider it.
Based on the latest stats from Nacha, ACH payments among B2B and B2C buyers have been on the rise, with $7.3 billion payments made in the first quarter of 2022. And according to stats from the Federal Reserve, ACH is gaining shares and volume of non-cash transactions — not to mention that the average volume of ACH transactions has more than doubled over the last six years.
Still, need more convincing? Well, consider this fact.
According to recent research, consumer spending for the remainder of 2022 is expected to grow rapidly. Given the increase in ACH transactions, it's safe to say that savvy business owners that offer this payment option to their customers will thrive in the second half of the year and be poised to sustain the momentum in 2023.
In addition to capturing the projected spend, ACH provides businesses many benefits that make it a win-win solution for customers and businesses like you.
1. Cost-Effective Alternative to Other Digital Payment Solutions
On average, paper invoices cost companies about $170,000 to process annually. Meanwhile, credit cards have a 1%- 3.5% processing fee, which doesn't include setup and operation fees. ACH, in contrast, has flat fees ranging from 20 cents - $1.50 and percentage fees from 0.5% - 1.5%.
2. Faster and More Efficient Processing Time
Compared to paper checks, ACH payments take seconds to process. Since it's electronic, it can’t be lost in the mail, and it uses the same payment gateways as other electronic payments customers are used to, which makes it great for setting up recurring payments.
3. More Secure for Businesses and Customers Alike
Because payments are made using the customer’s bank account instead of paper checks, it's more secure and puts customers at ease regarding their security and privacy. The same holds true for business owners. If you accept ACH payments, account numbers are entered into a secure system and encrypted during ACH processing. You no longer need to worry about storing paper checks at the office or exposing customer-sensitive information.
Now that you're aware of the value ACH payments can provide your business, here’s what to look for in a payments partner to ensure you have all the tools you need in your digital payments toolbox.
1. Ease of Payment Integration
Time is money in the world of business. The key is to look for a payment processor with a robust open API library that supports integration to the top tools businesses use today, like NetSuite, for example. It should make adding new capabilities plug and play for your business with minimal developer integration.
2. All-in-One Payment Processor
Let’s face it. No one wants to toggle between multiple platforms and spreadsheets to process and reconcile payments. A great payment partner should provide you with end-to-end payment processing capabilities that cover everything from authorization to depositing funds — cutting the middleman, reducing fees and enabling you to focus on what matters most: growing your business.
3. Online and Mobile Capabilities
This one is straightforward. Today's customers love shopping online, and more and more of that online shopping is being done via smartphones. When looking for a payments partner, look for one that streamlines the shopping experience that also places a premium on security, which brings us to our next point.
4. Security and PCI Compliance
One reason customers abandon their online shopping carts is a lack of trust. Customers feel like they can't trust the website with their personal information. Find a processor that includes tokenization, end-to-end encryption, fraud detection, and more as part of its offering. If the processor is also PCI compliant, it makes them an even more attractive partner. That’s because it will remove the need for you to undergo PCI certification and will reduce your liability in case of fraud.
5. Support of Current and Future Payment Methods
With new payment channels cropping up every day, having the ability to add new payment options to your payments toolkit is a must-have for any business owner. Your payments partner should support various payment options like credit/debit cards, contactless payments, ACH, e-Invoice, text, digital wallets and more while having the infrastructure to add new channels in the future.
ACH is poised to become a significant growth lever for companies that adopt and offer it to their customers today.
Ready to start accepting ACH today? Discover how MerchantE can help you expand your payment acceptance:
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