Can I use ACH to automate payment collections for my business?
Automated Clearing House (ACH) payments are electronic transfers of funds from one account to another. You might already use ACH payments for your employees’ direct deposits. But you can also use ACH payments for your business! ACH automated payment collections take money directly from your customers and deposit them to your business account, saving time and money. If your business requires recurring customer payments, consider ACH automated payment collections!
The Benefits of ACH Automated Collections
Because ACH payments are a type of electronic transfer, they don’t require checks, cash, credit cards, or wire transfers. That means ACH payments are much more secure and cost little to nothing to process. Additionally, ACH payments only draw funds from checking or savings accounts, so there are no issues with card expiration dates. And customers enjoy the freedom automated payments provide – they no longer need to worry about when their bill is due!
While these payments may take longer to process, the benefits of ACH automated payment collection make this payment method a favorite for small businesses.
How ACH Automated Collections Work
- The customer authorizes automatic payment collections from their bank account, typically on your business’s website.
- Your business sends the customer’s payment details to your ACH provider. For small businesses, your ACH provider is likely your business’s bank.
- Your ACH provider automatically requests payments at the scheduled dates or intervals.
- The payment is processed.
Find a Horizon business advisor today to discuss ACH automated collections and other business needs.