ACH transfers are a type of ePayments that use a network of secured bank connections to establish direct payments between financial institutions.
CORE provides the option to enable ACH payment transfers, which would allow your client to pay outstanding invoices both quickly and reliably. In CORE, you can enable ACH transfer as an online payment method is Global Settings > ePayments.
BQE Software has partnered with Stripe, Plaid, and AffiniPay to help facilitate ACH payment transactions. Simply, create an account with your preferred company to use the ACH transfer payments in CORE. That's it.
1. Lower Cost to You
Let’s start with my favorite. The average ACH transaction typically costs around $0.30, making it much less than other payment methods such as credit card or other bank transfers. For example, the median charge for processing a credit card and/or debit transaction is around $1.50 to $2.50 per transaction.
That difference may not seem like a lot up front, but it can sure add up over time.
While paper checks may turn out to be the least expensive option per transaction for your firm, the time it takes to process checks (as well as margin for error) can quickly offset these assumed savings.
2. More Secure Transactions
Speaking of checks, did you know that printed checks are consistently among the top targets for those looking to commit payment fraud? ACH transfers, unlike checks, cannot be lost or stolen... and each transaction must pass through vigorous validation before the payment is finalized.
ACH Workflow: Transfers take up to 5 business days to get a success or failure message. Payments created on or after 22:00 UTC are processed on the next business day. A pending balance transaction is created reflecting the payment amount minus the fee. Successful ACH transfers are reflected in your Stripe available balance after 7 business days, at which point the funds are available for automatic or manual transfer to your bank account. Your clients see the payment reflected on their bank statement 1-2 days after creating the charge.
3. Improve Cash Flow
ACH transfers can quickly translate into fewer late or declined payments! Not only are they sent via secure encryption, ACH transfers also require that the paying account validate that the requested funds are available prior to completing the transaction. They can also be scheduled ahead of time, which can supercharge your collection efforts and free up your time for other important tasks.
ACH payments are also specifically designed to easily handle recurring payments from clients. This can include retainers or deposits, recurring monthly billing, fixed contracts and, of course, much more.
As you are probably painfully aware, recurring transactions can quickly rack up transaction charges. ACH transfers offer a solution that will not only help you get paid on time consistently, it will also help keep revenue forecasts accurate and reliable.
4. Less Margin for Error
ACH transfers are automated by design, rather than processed manually by bank tellers, so these transactions are much less prone to human error. This also means that ACH transfers can be completed more quickly as well.
In addition to being automated, ACH transfers in CORE are clearly displayed in the payment details and payment-related reports.
5. Provide Greater Payment Flexibility for Your Clients
ACH transfers offer opportunities for both merchants and clients to save time, secure their payments, and take advantage of the convenience of electronic payments. The benefits of ACH payments are clear, and providing payment flexibility is typically a win-win for both you and your clients.
For more information on ACH transfers, please visit the CORE Help Center with more information on ePayments.