ACH Processing

ACH Processing: Gain Customers-Cut Costs

ACH Processing offers the ability to debit (and credit) checking and savings accounts.

If you are a merchant that accepts credit cards then you know those fees ONLY seem to go up. Depending on the product and your customers you can easily be paying 3% or more in blended fees. Trying to figure out exactly what are paying by examining you merchant statement can be an exercise in futility. These statements are at best confusing and at worst deliberately designed to make you not want to read (understand) them. Downgrades, surcharges etc. Certainly enough to give you a headache.

So what can you do? Accepting credit cards seems to be a necessary evil BUT you do have options. At the top of the options list HAS to be accepting ACH payments. An ACH Payment or an electronic check debits the customers bank account. Why not look at taking their check payment by phone or web? Most consumers have a checking or savings account that you can debit electronically for payment. You will gain customers by offering an alternative payment option and save big dollars on processing fees. If you take recurring payments it is very easy to enable recurring plans that debit checking accounts.

Here’s why you save so much: Typically an ACH/EFT check by phone/web might cost .35 or less with NO PERCENTAGE of the transaction. Look at the example of a $100 sale. For a credit card you will pay close to $3.00 for this transaction. Maybe 2.29% for QUALIFIED transactions but if this is a rewards card bump that to 2.6% plus a .30 transaction fee. In comparison the electronic check is a FLAT .30. You save 90%. If you have 1000 transactions per month that is a considerable sum.

Why is the credit card so much more? A credit card transaction “grabs” the $ and holds them for you to be paid meaning you WILL get the money.  Part of the credit card transaction is an authorization that checks that the credit card has the $100 available and also “grabs” it for you. An ACH one-time or recurring transaction has no “authorization” component and may be “rejected” because the customer did not have the requisite funds or the account has been closed or you typed the account number in incorrectly.

Typically the rejection rate may be 1-2% of the transactions you take in. In many cases you can automatically recollect these payments. In addition there are advanced check verification tools you can utilize to reduce payment risk. So you have a simple to implement tool to increase the number of customers you have AND save big dollars on processing fees. You may not do away with credit cards but if you can convince your customers to pay via ACH you are the winner. CONTACT US to learn how we can help save you 80-90% or more on fees.

We can also help increase the number of customer that pay via ACH with our proven marketing plan.

We know you will still take credit cards. If you would like to see what we can save contact us.

 

www.ACH-Payments.com Providing Secure, Efficient, Economical Payment Processing Solutions

 

ACH Processing: Chargeback Protection

ACH Processing allows a business to debit a consumer or business checking or savings account. Many businesses use ACH Processing to streamline payment collection and enjoy the benefits of reliable cash flow.

The consumer or business does have protection against unauthorized debits to their account. There is a 60 day window for the customer to report to their bank that they have been electronically debited (ACH) without permission. They may "revoke authorization" as well. An example would be the consumer ordered a product from ABC company and when received it was substandard. They tried to get money back from the company they ordered the product from with no success. They can possibly go to their bank and revoke that authorization. In both instances of a chargeback the consumer signs an affidavit and their bank puts the money back in their account. The 3rd party ACH processor would then be debited those monies and in turn debit the company initiating the payment (ABC).

Let's assume ABC has great products and the customer is simply committing "friendly fraud" and trying to get their money back (buyers remorse?).  Company ABC would protect itself by 1) getting a signed (physically or digitally) agreement whereby the consumer agrees to be debited electronically (this is mandatory for recurring ACH Payments). For telephone or web based one-time payments you should provide a receipt with all relevant payment and merchant contact info. You should capture IP address if web based and record calls (if possible) by phone.

The merchant will receive notice from their third party processor they have a chargeback. The MERCHANT (ABC) would then contact that customer's bank and offer proof of authorization. The bank SHOULD reverse the chargeback. Some banks will while others (that want to appease the client) essentially ignore the proof. If the merchant is persistent and lets the bank know the transaction was authorized you may have success.

Without authorization ABC has no recourse to overturn the chargeback. As a merchant you may also want to consider check verification tools such as ATMVerify ( www.ACH-Payments.com/atmverify) as a front end fraud protection tool. Chargebacks do happen but if the merchant does their part (getting authorization-front end protection) your risk is reduced.

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You can obtain easy to use powerful automated ACH and credit card processing systems that make this a breeze. Throw in accepting payments in person, by phone and via the Internet and you have a complete solution. All done at very reasonable costs.

visit www.ACH-Payments.com for more info

ACH Processing: Risk Exposure

ACH Processing creates financial risk on the part of the payment processor. Any business that accepts ACH payments also has exposure.

Let's take  look at risk from the perspective of the ACH processor-GloboGym has 500 members and they bill $80/month via ACH. Owner White Goodman gets funded $40,000 on the 4th of each month. GloboGym starts losing members to Average Joe's and White realizes he is going under. He still has 500 members with billing info so he shuts the doors on the 5th after he grabs $40k. All GloboGym members are mad and want their money back. White closed his bank acct and moved out of town (now living with his Mom). Those member's get their money back from the bank and in turn the bank gets the money from the ACH processor who can't find White and eats a $40k loss. That is why there is an underwriting/risk mitigation component when a merchant applies for an ACH account.

Risk for the Merchant:

A merchant that accepts an ACH payment has a 60 day "Chargeback" window whereby the customer can "claim" an unauthorized debit to their account and the customer's bank "may" refund the money back to the customer. If you shipped a $500 pair of speakers and 50 days later the customer tries to pull a fast one by inititaing a chargeback you are potentially at risk for that loss. You can mitigate risk with written agreements (signed or e-signed) but the risk is still potentially there.

So ACH Processing does have a risk component. Merchant should have an understanding of both parties (ACH Processor and Merchant) potential risk.

www.ACH-Payments.com is your source for Secure, Efficient, Reliable Payment Processing Solutions

ACH Processing - Time is Money

Businesses spend lots of time keeping track of just about everything. If you totaled the hours spent collecting payments, sending invoices, making collection calls, posting payments, bank trips etc that number would be depressingly high.

Let's say you spend 10 man hours a month. 10 hours at $30/hour is $300 just in time. What would happen if you implemented an automated payment processing system allowing for both ACH and credit card processing? Let's also throw in an easy to use website payment solution and lockbox (mailed payments) processing.

All recurring payments now automated, use ACH check by phone for collection calls, encourage payments to be made online and convert all mailed payments into ACH electronic checks so you don't have to go to the bank. Your 10 hours is down to one. 90% time savings while at the same time creating predictable, reliable cash flow.

Using ACH Processing saves time and time = money. Visit www.ACH-Payments.com for info on how to get started. Mention you got to us from this blog post and we will waive all set up fees and refund first month's processing fees.

ACH Processing for In-House Financing

Many businesses offer payment plans for large dollar purchases. Furniture stores, rent to own, used car dealers, colleges to name a few.

In many cases they will outsource or contract with a credit agency to offer these deferred payment plans. The business could keep these payments in-house and realize income from "convenience fees" What they need help with (like many other business owners) is a system to automate the payment collection component of their business.

An automated system that debits checking, savings and credit card accounts can make their lives much easier and profitable. Throw in accepting payments in person, by phone and via the Internet and you have a complete solution. All done at very reasonable costs.

Find out more at www.ACH-Payments.com

ACH Transaction Volume

ACH Volume Increases 1.6 Percent in 3rd Quarter 2009

The Automated Clearing House Network grew by 1.6 percent in the 3rd Quarter 2009 compared to a year ago, according to NACHA statistics. Approximately 3.77 billion transactions worth more than $7.3 trillion were conducted during the quarter. These figures represent changes of 1.6 percent and (2.1) percent, respectively, compared to the same quarter of 2008. There were 2.26 billion debits and 1.51 billion credits, for a total of 3.77 billion. The statistics include commercial inter-bank and government transactions, but not "on-us" transactions.

The largest increase in ACH transaction volume was seen in the “BOC” category rising almost 20% from last year. BOC is Back Office Conversion-the practice of receiving paper checks and converting those transactions to ACH.

 

For more information visit www.ACH-Payments.com where you are Guaranteed to save time and money on payment processing services.

ACH Processing: Website Solutions

ACH Processing actually began as a solution for large insurance agencies (among others) to collect premiums automatically. No waiting for the check to be mailed for State Farm and the like.

The small or mid sized business was not offered these services by the bank as it entailed some additional labor costs. Technology evolved and now any business can take advantage of an automated payment plan to debit checking, savings and credit card accounts like clockwork.

Wouldn't it be great if you could take payments by check ( ACH ) or credit card on your website and all you had to do was know how to cut and paste? We thought so and that's why we spent the time and money to make it so. You can create your payment page that is PCI compliant, secure and so efficient you can take one-time and recurring payments. Not only that but it can also have the look and feel of your site. It sure sounds good but what is the cost?

For a branded, hosted, secure payment page that can take one-time and recurring payments you know there are companies that will charge you hundreds if not thousands of dollars to do this. We know it's minimally worth $300 but for our existing and new clients that need a secure, efficient way to collect customer payments we charge $0. Yes that's right you pay nothing to be able to create this page.
Simply sign up for our ACH and credit card processing services and you get Web Payments for free. Want to see a sample with your data filled in? Click here --this is a simple version that can be completely customized. In a few short days you will be taking payments electronically and automatically, by phone or Internet as well as having the ability to set up automated recurring payments.
Let's recap what you get:

• Secure, Efficient, Economical payment processing for one-time and recurring payments done via our Virtual Terminal or using Web Payments
• Detailed Reporting of all transactions-you can export in many formats Automated receipt emails to your customers
• 60 Day GUARANTEED satsifaction 

If that sounds good contact us at info [@] ach-payments.com

ACH and Credit Card Processing: Google Gadgets

If you are a Google fan (like me) you may already use Google Desktop to quickly find anything on your computer.

Google also offers Gadgets-tools that sit on your Google desktop that make tasks easier. Examples might be weather, maps, games, calendars etc. If you use Google Desktop you can now verify and process ACH and credit cards. You can simply download our gadget and when you need to process or verify an electronic  check or credit card you click on an icon and enter payment data. The ACH or credit card transaction is processed and a response quickly returned.

You can get detailed reporting through our ACH Gateway and also process recurring transactions (and much more)

Merchant wanting to take advantage of Google Gadget should visit www.ACH-Payments.comfor more info or email info[@]ach-payments.com

ACH Processing: Check Verification using IVR

Businesses that accept checks for payment run the risk of bad checks. Those businesses that perform a service in the consumer's home sometimes find out too late they have been provided a check from a closed account or one with stop payments or NSF's (non-sufficient funds) pending.

Until now those businesses had no efficient method of check verification. ACH Payments announces "CheckVerify" by phone: simply call an 800#, enter an account and routing number from the check and instantly find out if the account is open and in good standing or that the check will not be good. Merchants need protection from bad checks and CheckVerify provides that in an economical and efficient way. This is the first IVR (Interactive Voice Response) solution designed specifically for merchants that need to verify checks using a phone.

Merchant wanting to take advantage of CheckVerify should visit www.ACH-Payments.com for more info or email info[@]ach-payments.com

ACH Processing: Open Source Payments

ACH Payments (www.ach-payments.com) announces the availabilty of jBilling Payment Plug-In.

jBilling is the first open source payment processing platform. Open source is developed through a global community of contributors. Unlike proprietary software development, open source is not limited to the individuals hired by a specific company. Volunteers and individuals working for companies using jBilling contribute code, and through an extensive peer review, the best contributions are included in product updates.

ACH Payments has developed a third party payment processing plug-in specifically designed for jBilling users.  jBilling is at the cutting edge of payment processing technologies. ACH Payments is committed to developing and supporting payment processing innovations. By utilizing the jBilling plug-in companies can quickly and easily leverage the Payments Gateway platform for secure, efficient and economical electronic check, credit and debit card processing solutions.

ACH Processing: Martial Arts

ACH Processing actually began as a solution for large insurance agencies (among others) to collect premiums automatically. No waiting for the check to be mailed for State Farm and the like.

The small or mid sized business was not offered these services by the bank as it entailed some additional labor costs. Technology evolved and now any business can take advantage of an automated payment plan to debit checking, savings and credit card accounts like clockwork.

The Martial Arts world was actually an early adopter of ACH processing. The HUGE problem is that billing companies charge 2-6% of the studio owners revenue to process the payments. Martial Arts studio owners tend to be passionate about their sport but sometimes too trustworthy when it comes to their hard earned money. The billing company pays cents to process a $100 monthly payment and charges the studio owner $4 or more. Definitely a high margin business great for the billing company-not so much for the studio owner. So why should the owner pay THOUSANDS every year for something they can do themselves for 90% less? Good question. If you own a studio or know someone who does you don't need a billing company-put the money in your pocket. 

You can obtain easy to use powerful automated ACH and credit card processing systems that make this a breeze. Throw in accepting payments in person, by phone and via the Internet and you have a complete solution. All done at very reasonable costs.