payment processing

Businesses accept payments with other methods besides cash and credit cards. Many times merchants need the ability to accept and issue payments through ACH processing and eCheck processing services. Many of these merchants, including online and mail order, have added ACH payments as an acceptable method to make payments. Merchants favor the use of ACH due to the security and the simple functionality. With the option of using an ACH payment gateway or sending daily batches, merchants can process all transactions electronically. ACH processing can work with nearly any business model and has been a favorite method for businesses requiring recurring billing and automatic payments.

The Automated Clearing House, known as ACH, is an electronic financial network used for both debit and credit transactions throughout the USA. ACH transactions can either be used for credit or debit transactions. Merchants commonly use ACH as a way to send funds, such as paying a vendor or issuing a direct deposit payment. Using ACH for debits is commonly used by merchants to collect payments from customers, such as car loans or mortgage payments. The use of ACH processing is a payment method that is growing in popularity among merchants in most businesses.

ACH Network transactions are fully electronic and are governed by rules set forth from NACHA and the Federal Reserve. On average, over 60 million automated clearing house transactions worth over $1 Billion are processed daily through the ACH Network. About 60% of all ACH transactions run through the Federal Reserve and their ACH network called the FedACH. The remaining 40% of transactions are handled through the Electronic Payment Network. The EPN, is a privately owned automated clearing house that works alongside and at times with the Fed to clear transactions.

Merchants looking for a safe and secure payment method have increasingly turned to ACH processing. ACH payments are sent through the same secure network that the Federal Reserve Bank and other government agencies use, insuring that funding is safe and secure. For more information or to set up an ACH payment service, fill out our free ACH application or contact one of our helpful representatives.