ACH Processing Services
Automation has transformed the accounts payable industry. The ACH processing services has transformed the way transactions are carried out. Paper checks, invoices and records were extremely prone to fraud, and could cause a business to lose both time and money. There are, no doubt, other areas within this process that could be automated to reduce these possibilities, but the easiest and most efficient of all is to implement Automated Clearing House (ACH) payments for all payables.
Over recent years, more and more businesses have started to use the ACH payment method in various ways. This isn’t much of a surprise, keeping in mind the numerous benefits these payments offer:
Benefits of Using ACH for Payments
Lesser Printing and Processing
Printing hundreds of invoices and checks on a regular basis is nothing less than a nightmare. After they have been printed, they have to be processed through accounts payable, the relevant department and then dispatching it using snail mail – a cumbersome process indeed!
ACH payments significantly reduce this hassle and automate things for a company.
An average payment costs around $2.00, using the traditional paper processing method. If the cost of stamps, envelopes and other associated expenses is counted in, this would easily increase the expenses of a company. Statistics show that through ACH payments, businesses can save up to $40,000 a year.
Security is crucial when it comes to money. Paper checks and invoices are prone to fraud, whereas, an electronic payment method such as utilization of ACH processing services can provide increased security and eliminate chances of check tampering.
Less Manual Input Required
The traditional payment methods require a lot of manual work from the part of the employees. This labor intensive process does nothing but impose extra burden on employees. Adding automation to the system would allow them to concentrate on things that matter the most, increasing productivity.
Improved Cash Management
When manually managing accounts, there are great chances of errors. ACH payment services can help a business to manage their cash while considerably reducing mismanagement of funds.
Easier Recurring Payments
A lot of businesses are subscription based, meaning that their income depends upon receiving monthly or annual payments. Another major advantaged of ACH payments is that these recurring payments can be automated, allowing the payments to be received swiftly and reliably.
ACH payments can be accepted using a wide range of methods, including through telephone, the internet or a recurring bill. This enhanced flexibility means lesser trips to a financial institution would be required.
It is estimated that approximately 9 million Americans become victims of identity theft every year. This is due to the thief obtaining information about the victim from a paper check, credit card statement or bank statement. ACH processing services provide ways to electronically transfer payments, thereby reducing the need for paper-based information that is prone to being misused. As more and more companies turn to the ACH payment method, it has become the fastest growing electronic network in the world.