ACH Merchant Accounts
ACH stands for “automated clearing house” and is a form of e-payments or Internet payment. An ACH merchant account can help a business by processing all forms of electronic payments.
There are two different ways that an electronic payment can be transferred. One is by wire transfer and the other is through an automated clearinghouse. With a wire transfer, payments are based on an e-payment or online system that can handle high amounts of transactions that are needed right away. Usually these refer to transaction processing between large banks. An ACH merchant account is more like an electronic check. While an e-payment is usually processed right away, an ACH account usually takes a couple of business days to clear.
The ACH takes all transaction files that they get from member banks and divides them by either where the check was cashed or where it was deposited and then pays the bank. After the transaction has cleared, the ACH totals all of the accounts and then either credits or deducts the funds. When a business opens an ACH merchant account, the business can benefit a great deal from using the online payment system. Customers also can feel good knowing that businesses trust an ACH merchant account for their payment processing.
One good thing about an ACH merchant account is that the application fee and any fees that are charged up front are small. However, if after a business begins the application process and decides to withdrawal the application process and ACH merchant account will not refund the fees. Only in rare cases are businesses declined for an ACH merchant account. The only times fees are charged are after an account has been approved. In addition, with an ACH merchant account, a business must provide all necessary applications and documentations within 90 days of submitting an application. If this is not done, all of the fees are collected and are not refunded.
The ACH, or automated clearinghouse system, is a very reliable nationwide electronic funds transfer system. The ACH and members of the ACH are all subject to the rules, which provide the clearing of the electronic payment system. When a business opens an ACH merchant account, they receive many of the features that this clearinghouse offers. In addition to offering ACH merchant account, the ACH also offers business owners direct deposit of payroll, social security and tax refunds. The ACH can help consumers with direct payment of consumer bills such as loans, utilities and mortgages. Businesses can take advantage of the business-to-business payments through the Internet that the ACH offers their clients. Federal, state and local tax payments can also be made through an ACH merchant account.
If your business decides to open an ACH merchant account, make sure that the business has researched all of the options and features available. ACH is highly reliable and many companies trust their clearinghouse process. It is also an advantage for consumers to go through companies that offer ACH merchant accounts because they are well known.