Whether purchasing merchandise or paying for utilities, business-to-business (B2B) transactions are essential to running any small to medium-sized company. However, when it comes to recurring payments, paper checks and credit card payments can come with high processing fees. Luckily, ACH is an effective and reliable alternative. Read on to discover how your business could benefit from utilizing an ACH payment system:
A business can save time and money by automating recurring payments with ACH. The payment method transfers funds directly from a customer’s bank account, cutting down on transaction fees and eliminating failed costs. In addition, the transaction can be recorded in a business’s bookkeeping system, making it easier to reconcile payments. Similarly, businesses that offer subscription-based services can benefit from using ACH to process their billing transactions. Subscription-based companies often have a large number of recurring transactions each month. They can use ACH to invoice customers automatically, so they don’t have to worry about forgetting to send an invoice or dealing with late payments. In turn, this makes for a more efficient payment process and helps to boost customer satisfaction.
As the world moves toward a paperless environment, finding new and innovative ways to make bookkeeping and payment management more efficient is important. One solution is to use ACH payroll processing, which reduces the need for paper documents and trips to the bank by depositing funds into employees’ accounts through direct deposit. Additionally, ACH offers same-day processing so employers can provide workers with their wages on the same day they initiate payroll.
ACH payments are a great way to reduce the amount of paperwork your business processes. Paper checks and other forms of payment require businesses to spend time sorting, filing, printing, mailing, delivering and tracking them. At the same time, ACH transactions are electronic, so you don’t have to deal with all that physical paperwork. Adding a robust document management system, like NatPay’s Doculivery, to your ACH payment processing can help your business reduce the paperwork burden and keep records organized and accessible online.
Using the ACH network, which can push and pull funds, you can automate recurring transactions previously done by hand or on manual systems. It means you can eliminate the risk of lost or stolen checks and make it easier for customers to pay you by direct deposit, a feature that’s becoming more popular among consumers and small business owners. B2B companies also benefit from reducing the costs of credit card fees, wire transfer fees and third-party check processing when they use ACH payments. These transactions save on average 1% in transaction fees and provide a low-cost alternative to traditional high-value payments like wire transfers and credit cards. Providing customers with a lower-cost payment option shows that you care about their experience and builds trust in your brand.
In addition to reducing the costs of printing and mailing paper checks, ACH payments save business owners money through lower processing fees. Unlike credit card transactions, which can cost 2.5 to 3.5 percent of the total transaction, ACH payments only charge around $1 per transaction. It can add significant savings over time, especially for a growing company. Customers also benefit from a more convenient payment method through ACH payments. They can easily authorize recurring transactions at billing companies’ websites and avoid late fees by setting up automatic withdrawals from their bank accounts. A robust document management system can help companies keep meticulous records of all ACH transactions. It eliminates the need to file and store hard copies of documents, which saves businesses money on storage, shipping, and printing. For B2B payments, ACH is a safe and reliable way to transfer funds directly from customer’s bank accounts to merchants’ accounts. It helps reduce the risk of payment fraud or embezzlement by transferring funds through a secure network that’s not susceptible to data breaches. It also reduces the number of manual processes on both sides of the table, preventing unnecessary delays and exceptions such as buried invoices or repeated inquiries about a client’s payments. ACH is one of the most popular and trusted networks for electronic payments, moving $76 trillion in 2022. By providing a safe and convenient way to process customer payments, it’s no wonder that more and more businesses are choosing this trusted solution.
Increased Customer Satisfaction
Businesses with B2B transactions need a secure, reliable payment method to help them serve their customers better. Whether buying merchandise, paying utility providers or collaborating with suppliers, B2B transactions are a big part of any business. An ACH payment processing system can reduce the cost and hassle of resolving customer payments. For instance, ACH processing fees are much lower than credit card fees. Customers don’t have to carry around a checkbook or send money through the mail, which could save businesses on postage, ink, and transportation costs.
As a result, businesses can offer a more convenient customer experience and reduce the time spent resolving payments. Additionally, implementing an ACH payment process can help companies to improve their cash flow management, which is especially important for businesses that operate on a subscription model. Many businesses use an ACH provider for payroll services to deliver fast and accurate employee direct deposits. Using an ACH provider for payroll processing can also help to avoid errors in paychecks, which can damage employee relationships and cause delays in receiving pay.