While most businesses today accept credit and debit cards, a growing number of them are accepting electronic checks for purchases by using automated clearing houses or through ACH processing.

The main reason for the increasing popularity of electronic payments is the cost-effectiveness of this type of payment processing. On average, most companies pay 3% in transaction fees when they accept credit cards as payment for their products or services. On the other hand, ACH or credit card processing on average accounts for about 0.2% of transaction fees.

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Service-oriented businesses such as accountants, law firms, plumbers, technical support, etc. benefit most from ACH payment processing compared to credit card processing.

Customers can be debited electronically instead of waiting several days to receive a paper check as payment for services rendered. In addition, the cost savings when comparing ACH with credit card processing are significant. If you consider that this avoids transit time, reduces roads to your bank and post office, and stabilizes your company’s cash flow, ACH is a better choice for payment processing.

Once you create an ACH account, you can immediately start receiving payments in person, online, or over the phone. This is a win-win situation for your customers and your company. Recurring payments are also easy to set up as you can automatically withdraw funds from customer accounts. Unlike cheaper ACH processing methods, you don’t have to worry about paying a fortune for this service every month.