If you’re in the market for a new payment system for your business, ACH payments may be a good fit for you. This is a simple and secure alternative to credit cards and wire transfers. These payment systems are easy to set up and less costly than card networks. They’re also faster. Depending on your bank, they’re usually processed in batches three times a day.
You can process ACH transactions through your bank or a third-party payment processor. It’s important to understand what your fees are for each transaction. Also, know that the payment processor you choose should offer an easy-to-use dashboard. A payment processor with a user-friendly dashboard is more likely to accept and forward your payment in a timely fashion.
For businesses that don’t already accept credit cards, ACH payments can be a great way to save money. Unlike a credit card, an ACH payment doesn’t incur hidden charges or a monthly fee. In addition, ACH transactions are quick, so there’s no need to wait weeks to receive funds. ACH deposits can arrive as soon as the next business day. However, ACH transactions can take up to two days to settle.
While many businesses can accept ACH payments through their own bank, they may prefer to use a third-party provider. Some ACH processors charge a flat percentage, while others have a set, low rate. There’s also the possibility that your customer may reject an ACH payment, which can result in penalty fees.
Whether you choose to process ACH transactions through your bank or rely on a third-party payment processor, it’s important to learn how to initiate transactions. Square and Plaid, for instance, will help you securely connect your bank accounts. Then, your customers will be able to log in to Square with their bank information and complete the transaction.
Another benefit to processing ACH transactions through your bank is that you don’t have to worry about your customer losing their account information. Despite the convenience of a credit card, some consumers might not always remember their bank account details. Using a third-party payment processor can help you prevent that. Besides, if you need to change your bank account, you’re less likely to have your recurring payments interrupted.
Square provides hardware and software that allow you to accept ACH payments. You’ll also need to choose a bank account that supports ACH. Once you’ve selected a bank, you’ll need to go through a verification process. If the transaction doesn’t go through, you’ll need to rerun it. Alternatively, you can use the same credit card processor you use for other transactions.
Square doesn’t charge a monthly fee for ACH payments. If you don’t want to pay a yearly fee, you can opt to only accept ACH payments from customers you trust. But, be sure to research other third-party providers before making a decision.
Whether you’re a business that has a low volume of transactions or one that’s more complex, you can make the most of Square’s payment solutions. Square is focused on providing payment flexibility, security and transparency. It’s designed to meet the needs of large and medium-sized businesses.