What Is ACH Credit?
The ACH credit method is an electronic payment alternative that does not require the use of a credit card. Your clients can simply pay your company through a direct transfer from their accounts into yours. For an online business, it is essential to offer several payment alternatives to their clients. You should know that not every one of your potential customers likes or can make credit card payments.
Offering more payment methods for your clients has the effect of increasing the convenience provided by your business. As you may know, this factor is used by many businesses in many industries. Most internet users are attracted by convenience. They do not like or want to spend more time or effort making a payment if there are easier alternatives.
So, you should search and collaborate with a payment processing company. Doing this will help you grow your business much faster. The benefits that these companies offer through their services and software will ensure that your investments will be recouped in the shortest amount of time. And you will be able to increase your profits through the use of their services and products.
What Are the Benefits of Introducing ACH Credit?
The ACH credit method has several advantages from which your business can extract many essential benefits. The best benefits are:
- Increased customer base. One of the most effective benefits is an increased customer base. With the credit card payments option, only a small part of your potential customers will be able to pay if they want to buy your products or services. On the other hand, if you provide a diversity of payment methods, then your customer base will increase exponentially. Why would you want to lose a large chunk of your customers because of a lack of payment methods? You can find all the alternatives that you need on the internet. All you have to do is to use them.
- Increased revenue. At first sight, increasing the number of payment options may seem like an extra cost that will reduce your profits. But if you make some simple tests, you will realize that increasing your payment option is an investment that will increase your revenue and your profits. Not only will you recoup all the money invested very fast. But you will also get more customers that can only use other methods besides credit cards. And this will increase your sales.
- Lower risks. Alternative payment methods include the use of electronic checks. And this payment method is less used than using the internet to transfer the money directly. Even credit cards are not the perfect payment methods and not everyone has one. There are still many who does not like or want to use them. So, you need to use methods that have a low risk, increase the overall security of your company and can be used by almost anyone. You can also use informative marketing campaigns to increase the trust of your customers in your alternative payment methods.
- Control over the credit score. The credit score is essential for a business. You need alternative payment methods like the ACH that have an instant transfer. The money will be directly sent to your account, and you will not need to worry about any potential cash flow difficulties. Also, you will have a much better ability to control the credit score of your company. And this may be very helpful in the future when you want to grow your company through the use of the bank services.
Why Should You Combine ACH with Credit Card Payments?
Keep in mind that it is not ideal to only use the ACH method. By doing that, you will limit the number of your potential customers again. You will not have access to all the clients that use credit cards to make their payments. It is in your best interest to combine the ACH credit with the credit card payments method. Although your company will not receive the payments, made by your clients through credit cards, instantly. But you can use a payment processing provider that will help you reduce the delay as much as possible. Make sure that the provider that you are going to use also offers the mandatory features presented below.
- Fraud protection. You need to look for a payment processing company that includes protection against fraud attempts and chargebacks. This will help you reduce the losses caused by these situations. A good defense will also reduce the number of attempts that will happen in the future. It is essential to increase your security and do not allow any fraudulent behavior against your business. So, you should let a professional company take care of your defense against fraudulent transactions.
- Reporting. Analytics and reporting are vital parts of any business. They will not bring you any direct benefits. But in the long run, you can make use of these services to grow your business at a much faster rate. As a business owner, it is your responsibility to make decisions. And when you need to make the crucial ones, every amount of information that you learn about the company will help you make a better decision. And the information provided by the reporting service offered by a payment processing software is exactly what you will need in these situations.
- Ongoing support. Not everyone is a tech person, but this does not mean that you can’t have one at your beck and call whenever you need support for the payment processing software. All you need to do is to ensure that that software that you are going to choose must have ongoing support after installation. Without this benefit, you will either need to pay every time you call them. Or you will not be able to solve any problem that may appear. For this reason, you need to ensure that the payment processing company that you are going to collaborate with, provides all its clients with ongoing support.