What Is ACH Payment Processing?

With today’s technology continuing to advance at rapid speed, consumers expect more convenience and flexibility when it comes to making payments. ACH payment processing makes it easy for businesses to expand their customer base while improving payment convenience and flexibility – offering yet another fast, easy and secure way for customers to pay. But exactly what is ACH payment processing, and how does ACH work?

ACH stands for Automated Clearing House, a federally regulated network that allows U.S. financial institutions to electronically send funds back and forth. The network is governed by the National Automated Clearing House Association (NACHA) and is operated by the Federal Reserve and Electronic Payments Network. With the ability to electronically transfer money directly to and from bank accounts, ACH provides a more efficient payment method than traditional paper checks and eliminates the need to obtain a credit card number.

How Does ACH Work?

The ACH payment process is similar to the traditional paper check process: Clients or customers provide their bank routing or checking account number, yet the payment is verified and sent electronically through the ACH system for a more immediate transfer. Businesses often use ACH payment processing to offer direct deposit options for employees; allow for direct payments on loans, rent, mortgage or other bills; simplify business-to-business transactions; and even make e-commerce payments.

The benefits of ACH payment processing include:

• Increase customer base and flexibility by making it easier for consumers without credit or debit cards to make efficient, secure payments.
• Reduce costs and late payments while improving customer convenience with recurring billing and electronic invoicing options.
• Save time and money by eliminating the hassle and costs of traditional paper check processing.

ACH Payment Solutions from BluePay

BluePay’s ACH payment solutions can simplify the payment process for merchants in any industry, from B2B enterprises to retail establishments.

BlueChex is BluePay’s electronic check and ACH processing solution, allowing merchants to process ACH payments through BluePay’s virtual terminal. The secure virtual terminal can be accessed from any computer with Internet connection, and saves merchants time and money by transmitting funds without the need to manually deposit paper checks at the bank. 

Avoid ACH Fraud with PCI Compliance

Electronic data theft is becoming more and more complex, making it crucial for businesses to take the proper precautions when accepting credit cards and ACH payments. BluePay’s payment processing products comply with PCI DSS standards, ensuring the highest levels of security to protect merchants, businesses and customers from credit card and ACH fraud. 

Contact BluePay today for more information on our secure ACH payment processing solutions!