Minimize Credit Card Transactions Process ACH Transactions for your Business Instead

What types of payments does your business currently accept? Youre probably saying cash, checks and credit cards " why what else is there? Well have you heard of or though about accepting ACH transactions? If youre wondering what ACH is and how to do it, continue reading this article and you will learn how processing ACH transactions will save your company time, money and simplify your business.

The Automated Clearing House (ACH) is an electronic network for financial transactions. ACH processes large volumes of both credit and debit transactions which are originated in batches. Some of the most popular ACH payments include:

• Direct Deposit of payroll, Social Security and other government benefits, and tax refunds


• Direct Payment of consumer bills such as mortgages, loans, utility bills, insurance premiums, and other forms of online bills


• Business-to-business payments


• e-checks


• e-commerce payments


• Federal, state and local tax payments

Businesses are also increasingly using ACH to collect online payments from their customers, rather than accepting credit or debit cards. Now is the time to think about doing the same for your business. Over the next few years, ACH will become a popular method for businesses to accept payments from customers or make payments to vendors because it is much cheaper than the standard credit card transaction fees.

As an example, lets say youre currently paying 2.5% and 15 cents per transaction to your credit card processing company. If your average ticket cost is $100, you would pay approximately $2.60 per each sale.

Now lets say that youve implemented ACH for your business and you now accept e-checks and/or direct deposits from your customers. On the same $100 ticket item, you would pay anywhere from 20 " 50 cents depending on your ACH processing company. Thats a cost savings of $2.10 per sale!

It gets even better than that " lets say your average transaction was $1000, surprisingly you would still pay the same 20 " 50 cent fee. Thats the beauty of ACH - they do not care how large your transactions are.

You can also easily make payments to your vendors using your ACH solution. Simply add your vendors bank account/routing number, enter the payment amount, submit your batch and whalah your vendor is paid. And its even cheaper and easier then sending a check in the mail!

There are many companies that offer ACH payment solutions but most are manual processes. If youre looking for a fully automated ACH payment solution, Hudson Horizons has can integrate an ACH solution into your website or application in a matter of days. They can have you accepting real-time ACH transactions and saving your company time, money and streamlining your business. Their costs are extremely reasonable and the solution is fully automated. The last I heard, their costs are $15 per month and 39 cents per transaction.

So as you can see, ACH is definitely the way to go. You can potentially save your business hundreds, if not thousands of dollars every single month by integrating an ACH payment solution for your business.