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.
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