Understanding the Basics of ACH Payment Processing System

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Understanding the Basics of ACH Payment Processing System

It is a known fact that an online merchant that provides fast, easy, and automated payment processing method will perform better than competitors that do not have convenient online payment methods. Customers tend to prefer merchant sites that enable them to quickly initiate and finish payment transactions without much paper pushing or check signing. These are the concepts that guide the payment systems of ACH. It will allow you to have secure and convenient payment processing system which you can offer for your customers. And by using ATM Verify, your risk of bad check acceptance is protected through the entire payment process.

ACH payment processing does not offer the “immediate payment authorization” as with credit card payment methods. These two payment methods are different. While credit card processing offers real time transaction authorization, ACH on the other hand allows debiting or crediting of a checking account but the payment is not known to be good as the point of sale. The ACH payment processing system provides consumers with an easy and safe alternative to credit card payments. Some consumers have already maxed out their credit cards or they do not have credit cards anymore. Others on the other hand do not want to add debts anymore by avoiding the use of their credit cards. Through the ACH payment processing system, consumers can still pay electronically as long as they have active checking accounts. By widening the options for consumers, your ACH payment processing can provide a boost for your business.

The ACH payment processing method tops other payment methods in affordability. Merchants and consumers can enjoy low one time fee for every transaction. This is far superior to using credit cards or paper checks. When using credit cards, customers will have to pay a certain percentage based on the amount their purchases. Customers will also have to bear the interest rates charged by credit card companies for every purchase which could add up to the cost of the transaction. Paper checks meanwhile are also expensive because you will have to buy checkbooks and pay for postage. All these expenses are absent in the ACH payment processing system. You and your customers will only have to shoulder a low transaction fee which would be cheaper than a postage stamp.

Of course, in every payment transaction method, certain risks are involved. However, ACH minimize these risks by providing a technology called ATM Verify. Basically, ATM Verify is a verification system that will counter check the integrity of the account provided by a customer, verifying the account is open and has money in it. So, if you are expecting payments, you can verify if the e-check sent to you is backed by an existing, active, or a good standing account.

When you use ATM Verify, the system will confirm if the e-check is positive, negative, or unknown. A positive check means it is backed by an account in good standing. Negative result means the payment may be dubious because the account does not exist or it is in bad standing. An unknown notification verifies that the account is not registered in the ACH network. Essentially, your interest as a merchant will be protected from fraud through the fast and easy verification system of the ACH network.