For companies and collection agencies, keeping track of the amounts owed can end up giving you a headache. Chasing amounts owed in terms of fees, payments, and rents are time-consuming and stressful, so you may be wondering, “What is ACH Collection, and is it a valid solution for my company?”
An ACH collection service represents a convenient, fast, and secure way of managing your company’s receivables. It allows you to be paid more quickly by collecting recurring amounts owed, including fees, rents, and payments automatically from debtors, members, tenants, and customers. It also eliminates many problems associated with collecting outstanding debts while also increasing your company’s cash flow.
What Are ACH Payments?
An ACH payment is a form of electronic payment that is made via the ACH (Automated Clearing House) Network. It’s a popular alternative form of payment, replacing credit cards or checks. It represents an excellent and direct method of receiving payments securely online.
Although some consumers are unaware of the term ACH, they’re probably already familiar with it. Many employers use the system to pay workers directly. In basic terms, ACH collection is simply a form of electronic transfer from a bank account into another bank account and a common way of paying service providers, employees, and suppliers, as well as collecting recurring amounts owed. The process is automated, which means payments will be regularly taken without any need for manual interference on behalf of either the customer or merchant.
Why Use ACH Payment Solutions?
Since ACH payment solutions are entirely electronic, they require no paper resources, yet enable companies to keep track of finances easily. Because they are also automated, they require no effort to maintain, and no time is wasted in waiting for checks to arrive and then processed.
Companies can benefit from the reliability of the ACH collections system. It ensures money will be automatically taken from the customer’s account. This means there is no need to worry about whether a check will be in the mail, or whether it will clear. Funds will be directly received ready for immediate use.
ACH transfers are also cheaper to process than other forms of payment. And, in the case of a recurring payment collection, these savings really do add up. Because businesses are can accept ACH payments remotely, they also represent an excellent solution for e-commerce companies and those who operate online.
When it comes to the consumer, they, too, can benefit from this payment solution. They’ll no longer need to deal with the hassle of writing checks and mailing them. The automated system means they don’t need to waste time focusing on bill payment since the process is handled on their behalf.
How to Accept ACH Collections
To accept ACH payments, a partnership with a payment solutions provider is necessary. Choosing a reliable operator is vital, and a company, such as REPAY, is a good choice. The company is trustworthy and reputable. Offering a competitively priced service, its convenient payment solutions represent an ideal way of receiving monies owed directly and in a hassle-free way, which benefits both the customer and merchant. Hopefully, this information will answer the question, “what is ACH collection”.