Your first thought might be, please not another acronym to remember. But this one should be easy because it will save you money.
Automated Clearing House (ACH) is a simple way to collect monthly payments that offers a lot of benefits to your business. Continue reading below for more information on how ACH works with your growth in mind.
First, let’s start with a few simple questions to investigate if accepting ACH payments is right for you:
- Does your business currently take recurring payments?
- Do any of your members pay by check?
- Do other members pay with a credit card?
- Are members currently paying with credit cards open to different payment options?
- Do the fees for ACH processing save you money compared to credit card fees?
- Are any members uncomfortable paying with a credit card?
If you answer ‘yes’ to any of these questions, your business is likely to benefit from accepting ACH payments.
History of ACH Payments
ACH is a method of taking payments directly from your member’s bank accounts. It is, in fact, the exact same mechanism as a direct deposit. But instead of being a part of payroll, it is a type of payment processing. This type of payment process has been around since the 1970s thanks to the National Automated Clearing House Association (NACHA). We know, another acronym, it’s ok!
Why Should I Take ACH Payments?
The simplest reason? ACH payments save you money. Credit card processing can be expensive. With so many steps to collect credit card payments, not to mention any surcharges depending on the credit card company, these fees add up quickly. ACH payments are a simple transaction between two bank accounts, cutting out fees. Also, this direct transaction deposits funds in your bank account faster than credit card payments.
Aside from CC fees, you stand to save money from member retention. About 1/3 of credit card numbers change at least once a year. This can lead to pesky declines each month. Avoid the annoying steps of resolving payment declines by simply collecting membership dues from member bank accounts instead.
The final reason to have an ACH payment option is that some members may not feel secure paying with credit cards online. Give your members more payment options to keep them feeling safe and allow your organization to keep growing.
Partner with Gains
Gains can be your way to paid. With a suite of payment processing options built for membership organizations like yours, Gains will give you the resources to easily collect payments and spend more time with your members. Connect with a specialist for a custom payments report.