Automated Clearing House (ACH) is a government-regulated electronic network through which financial institutions can transmit funds back and forth. The process is similar to credit cards, except that senders and receivers use bank routing codes instead of traditional 16-digit credit card numbers.
Enabling ACH payments offers important advantages to businesses and customers alike:
In an earlier post, we covered some of the primary benefits that businesses receive by accepting virtual payments. Consumers benefit as well, especially those 10 percent who don't carry cash at all and the nearly 80 percent who carry less than $50 at any given moment.
One in 10 Americans don't carry any cash at all, and 78 percent carry less than $50 at any given moment. Yet consumer spending is on the rise nationwide.
More and more Americans are embracing virtual payments in lieu of traditional cash, checks and money orders. What’s more, they’re using virtual payment systems in increasingly creative ways. The following list outlines 10 of the more popular applications for virtual payments:
Electronic bill payments (EBPs) continue to grow at a fantastic rate, with nearly 70 percent of Americans using online payments instead of cash — and an increasing number of companies adopting direct deposit over traditional checks.
It’s not difficult to see why EBP transactions are on the rise. The ability to process paperless payments helps to:
When credit cards were first introduced, only the largest and most successful companies could afford to open merchant accounts.
Thanks to the rise of e-commerce and mobile credit card processing, any business can now accept virtual payments — regardless of industry or size. What once was a competitive advantage has quickly evolved into an absolute business necessity.