Paper checks, a traditional payment method rooted in history, have been a staple for financial transactions for over a century. However, in our ever-evolving, contactless environment, the drawbacks of physical checks, such as processing time and limited contactless options, become apparent. For moving companies looking to streamline their payment processes and enhance customer experiences, Automated Clearing House (ACH) payments offer a modern and secure alternative.
Understanding the ACH Network
The ACH Network acts as a financial hub, connecting over 10,000 financial institutions to facilitate various financial transactions in the United States. This electronic system supports direct deposits, direct payments, and a range of transactions, including business-to-business (B2B), government, and consumer transactions.
Benefits of ACH Payments
Limited Contact, Enhanced Security: ACH payments provide a secure environment for both customers and businesses by eliminating the need for physical checks. Customers submit their payment information through an ACH authorization form, minimizing contact and enhancing security.
Reduced Processing Times and Costs: A key advantage of ACH payments is the expedited processing times compared to traditional checks. Electronic transactions through the ACH network result in quicker and more cost-effective payment processing. ACH payments outpace traditional checks in terms of processing and deposit speed. The electronic nature of the transactions accelerates the movement of funds, providing moving companies with quicker access to their revenues.
Effortless Management of Recurring Payments: Moving companies dealing with recurring bill payments can benefit from the ease of managing transactions through ACH. It simplifies the process of handling repetitive payments, ensuring timely and hassle-free financial interactions. You’ll no longer need to update credit card information when a customer obtains a new card or their credit cards expires.
Reduced Dispute Times: ACH transactions offer reduced dispute times compared to credit card transactions. Customers only have 60 days, half the typical 120 days for credit cards, to initiate a chargeback. This helps in resolving any payment-related issues promptly, enhancing customer satisfaction and maintaining a positive business-customer relationship.
How ACH Payments Work:
- Customer Provides Bank Info: Customers provide their bank account information, including routing and account numbers, for electronic processing.
- Electronic Request for Payment: An electronic request is generated and sent to charge the customer for the purchase amount.
- Request Sent to Customer’s Bank: ACH sends a request to the customer’s bank.
- Bank Verification: Customer’s bank verifies the information and funds.
- Funds Transfer and Deposit: Upon receiving the transaction result, funds are transferred from the customer’s bank via Electronic Funds Transfer (EFT) and deposited into the merchant’s bank account.
Moving companies embracing ACH payments gain a competitive edge by providing customers with a secure, efficient, and modern payment experience. The benefits of limited contact, reduced processing times, and simplified management of recurring payments position ACH as a valuable tool in optimizing financial processes and fostering positive customer relationships. As the moving industry continues to evolve, integrating ACH payments can be a strategic move towards a more streamlined and customer-centric approach.
Reach out to our team by calling 714-461-2200 or emailing email@example.com so we can help you get ACH payments set up.
Remedy is powered by Chosen Payments whom is a registered ISO and FSP of Wells Fargo Bank, N.A., Concord, CA and BBVA USA, Birmingham, AL., and Elavon, Inc., N.A., Atlanta, Georgia, and Evolve Bank & Trust; Memphis, TN., and Merrick Bank, N.A., Draper, UT.