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Reduce Payment processing costs by 80% Or More!

How would you like to reduce payment processing

costs by 80% or more and at the same time open up

a new payment mechanism to customers?

If so you need ACH processing. ACH stands for

Automated Clearing House and essentially refers

to the regulated network used for transferring

monies to and from checking and savings accounts.

Most people pay a bill or make automatic contributions

to investment plans using this payment method. You may

also see ASH referred to as EFT or direct debit. You would

use ACH processing in accepting a check by phone or fax or

via your Internet site. You need the customer's account

and bank routing numbers. Recurring payments can also be

taken very simply.

Their are several major differences between credit card

transaction processing and ACH. A credit card transaction

always involves a transaction fee and a discount rate.

An example would be 2.39% plus .30 per transaction. For a

$100 sale the merchant pays $2.39 (2.39% of $100) plus the

.30 per transaction for a total of $2.69.

Using ACH processing you can eliminate the discount rate

in the majority of transactions (high risk business may

have discount rates imposed). Depending on your average

ticket size the savings are substantial. On the $100

average transaction you save close to 90% of your

transaction costs. Even with low volume businesses the

savings are significant.

While the ACH transaction saves substantially on costs

the credit card transaction does offer immediate payment

capture. That is a "hold" is placed on the customer's

credit card funds. ACH payment processing does not

currently "hold" or instantly transfer funds. The transaction

is assumed good (the customer has the funds in their account)

but they could be NSF (bounced check). Typically your

reporting informs you of returned (dishonored) transactions

in 24-48 hours. Most ACH processors have automated recovery

methods if collection is needed.

ACH processing is typically accomplished using PC software,

an Internet "Virtual Terminal" or by uploading files or

integrating a solution into a legacy app or Internet site.

It is usually fairly easy to obtain ACH processing.

Make sure the processing company you choose to work

with is reputable and reliable.

You can save time and substantial money while offering new

payment vehicles for your customers.

©2003 by Wayne Akey

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ABOUT THE AUTHOR:

Wayne Akey has helped numerous businesses

reduce costs and increase efficiency.

Get the Free Report "Save 80% on Payment Processing"

mailto:achbook@royal-responder.com

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