| Home | Free Articles for Your Site | Submit an Article | Advertise | Link to Us | Search | Contact Us |
This site is an archive of old articles

    SEARCH ARTICLES


vertical line

Article Surfing Archive


ACH or Credit Cards - Articles Surfing

Most businesses accept credit cards and consider the process fees a cost of doing business. However by implementing an ACH payment system you can realize dramatic savings and increase sales.

ACH refers to the Automated Clearing House and generically means moving money electronically to and from checking and savings accounts. An example would be a check by phone or taking recurring payments directly from a checking account.

The MAJOR difference between ACH and credit card processing is that a credit card transaction *captures* the merchant's funds from the consumer and essentially guarantees payment. An ACH transaction is a request to transfer funds. The transaction may reject for several reasons with the most common being NSF (non sufficient funds) or a closed account. The funds are not guaranteed.

It is the guarantee piece that allows the credit card company to charge a percentage of the transaction to cover the risks involved. Typically a transaction will consist of a discount rate, 2.5% for example and a transaction fee, typically in the 30 cent range. This means that every $100 processed incurs about $2.85 in merchant fees.

Contrast this with an ACH transaction. Typically there is no discount rate just a .30 (or less) transaction fee. If you process $25,000 per month using ACH processing will save around $7500 per year. Certainly you will have more *failed* sales due to ACH transaction rejects (eg NSF) but your transaction savings will far exceed these losses. In addition you will appeal to a much wider range of consumers. Estimates vary but MANY people do not have credit cards or are at their limit on their cards. So the benefits are two fold-much reduced transaction fees and a new payment vehicle for your customers.

So consider ACH processing for your business. It will save you money and win new customers.

Submitted by:

Wayne Akey

Wayne Akey has helped numerous businesses save time and money with ACH processing. Get your free report on how your business can benefit http://www.ach-payments.com/software/secrets.doc or visit http://www.ach-payments.com.

info@ach-payments.com


        RELATED SITES



https://articlesurfing.org/business_and_finance/ach_or_credit_cards.html

Copyright © 1995 - 2024 Photius Coutsoukis (All Rights Reserved).

ARTICLE CATEGORIES

Aging
Arts and Crafts
Auto and Trucks
Automotive
Business
Business and Finance
Cancer Survival
Career
Classifieds
Computers and Internet
Computers and Technology
Cooking
Culture
Education
Education #2
Entertainment
Etiquette
Family
Finances
Food and Drink
Food and Drink B
Gadgets and Gizmos
Gardening
Health
Hobbies
Home Improvement
Home Management
Humor
Internet
Jobs
Kids and Teens
Learning Languages
Leadership
Legal
Legal B
Marketing
Marketing B
Medical Business
Medicines and Remedies
Music and Movies
Online Business
Opinions
Parenting
Parenting B
Pets
Pets and Animals
Poetry
Politics
Politics and Government
Real Estate
Recreation
Recreation and Sports
Science
Self Help
Self Improvement
Short Stories
Site Promotion
Society
Sports
Travel and Leisure
Travel Part B
Web Development
Wellness, Fitness and Diet
World Affairs
Writing
Writing B