Using electronic checks is a fast and convenient way for business owners to pay their bills. Making electronic payments is easier and faster than the traditional method of sending checks.
What are ACH Payments?
An ACH payment is an electronic payment method used to transfer money between bank accounts. With ACH payments, transactions are done immediately. It is an affordable, safe and efficient way of transferring money between accounts. ACH payments are useful to both individuals and businesses
Benefits of ach payments
1. Faster processing
Unlike paper checks, electronic ACH transactions are instant. Businesses don’t have to wait for check processing fees to drop before making transactions. Faster processing fees mean less money out of your business account and less hassle for you.
2. Avoid losses associated with paper-based payroll
Paper-based payroll results in lost revenue arising from frequent employee mistakes. It is easy to avoid these mistakes when you embrace B2B online payment processing. Ach payments can prevent serious accounts issues like:
- Miscalculating payments
- Incomplete or disorganized financial records
- Missing payroll deadlines
ACH payments Canada offers more accurate and easy-to-understand paper-based payroll data. ACH transactions reduce the risk of payroll errors caused by payroll sprawl.
3. Reduce administrative costs
Paper-based payrolls are expensive due to the associated fees. But ACH payments are affordable and safe. The secure online payment processing reduces the need for manual entry of information. Electronic payment processing Canadaalso reduces payroll clerk duties. Additionally, it reduces expenses for printing checkbooks each month.
4. Provide greater customer
ACH payments allow customers to pay their bills and transactions faster and easier. With ACH payments, customers can make payments directly from their bank account. There won’t be a need for mailing checks since the transfer of funds is through electronic means. This provides them with instant access to their funds. Transactions are also recorded immediately after the designated financial institution authorizes the transaction.
5. Reduced payroll penalties
Many small businesses lose money due to late or non-sufficient funds fees. Because B2B online payment processingis electronic, you can avoid late payment and non-payment penalties. ACH transactions are reported monthly, reducing penalties for payroll delays and fraud. Reducing payroll costs allows businesses to grow by expanding and attracting more clients.
6. Improved efficiency
ACH payments allow businesses to process payrolls faster than the traditional paper-based methods. Paper-based methods can take several days before transactions get approved. Also, manual entry of data is required for certain transactions.
ACH payments feature automatic data verification. Processing payroll online reduces the need for having multiple customer service lines.
7. Increased cash flow
Direct deposit ensures that funds are deposited directly into a designated bank account. Another feature of ACH payments is directfunds transfer to designated bank account numbers. There won’t be issues of misspelled bank account numbers or incorrect transferred amounts. With ACH payments, authorized parties can enter account numbers and transactions become automatic.
8. No limits on credit card payments
ACH transfers provide tax refunds to individuals promptly. This reduces the possibility of exceeding the tax refund deadline.