Logan Voss
Automated Clearing House (ACH) is an electronic network that financial institutions rely on to process payments. When your business can accept ACH payments, it gives your customers added flexibility to pay for services. ACH payments also allow fellow companies to transfer funds smoothly.
Here is a guide to accepting ACH payments for your business:
Choose Your Provider
If you have a merchant account, you can consider yourself halfway to the finish line! However, there might be additional steps to evaluate to ensure your business can accept ACH payments regularly.
If your business accepts credit cards, it would be wise to inquire whether you can utilize the same credit card processing company. Conversely, businesses operating on a cash-only payment system should ensure they partner with providers that offer accessible POS systems and gateways.
By selecting the right provider that charges, you may also choose to set your company up for business-to-business ACH payments for even more convenient payment options outside of just customer transactions.
Register Your Merchant Account
After deciding on a payment processing company, set up your new merchant account. As mentioned previously, businesses with existing bank business accounts would need to contact their credit card payment processing company. Doing so prompts them to set your business up specifically to accept ACH payments.
Take Note of Payment Details
As you set up ACH payments, remember to take note of your payment details. Record your account and routing number and store it in a secure location.
Also, you’ll want to learn how to initiate transactions through your third-party processing company to acquire funds. Typically, your provider will offer a gateway or dashboard for access funding.
Share Routing Details
Lastly, send your customers and clients your account details so they can initiate payments. In the event of security concerns, you can reassure customers and clients by allowing them to enter payment details via your payment gateway.
The third-party provider will pull funds from their account to initiate the ACH payment process.
Knowing how to accept ACH payments for your business allows you to receive payments quickly, smoothly, and cheaply so you can keep more of the money you earn.
