Automated Clearing House, also known as ACH technology is used by many businesses to process electronic payments. It’s a fast and easy way to send and receive money which can save you time and money and allow you to focus more on the operations of your business. In order to keep up in any fast-paced industry, you need a reliable partner with a proven solution. When choosing a check-to-ACH conversion company, ask yourself these five questions to ensure you choose a provider that will help your business grow:
What Is ACH?
- The Automated Clearing House is the electronic network that processes payments between financial institutions.
- ACH transactions are sent and received electronically, so they can be completed at any time during a 24 hour period.
- This allows you to complete your transactions in seconds instead of days or weeks like with paper checks, which often take longer than they should to clear through the banking system.
How Does ACH Work?
ACH is a network that seamlessly processes electronic transactions. The ACH network enables financial institutions to move funds from one bank account to another at the same bank, or between two different banks, through the automated transfer of funds in real-time.
Banks, credit unions, and other financial institutions use the ACH service to send payments directly into your bank account via electronic fund transfers (EFT). This includes direct deposit and bill payments, wire transfers, debit card transactions, payroll deductions at the pay window, and more!
New Pew Study Finds Online Bill Payments Are Gaining Popularity
If you’re looking for a way to pay your bills online, it’s important to keep in mind that this trend is growing. According to a recent Pew study, online bill payments are getting more popular as people become increasingly comfortable with technology and can understanding how online banking and bill paying works.
Online bill paying is a convenient way to save money on late fees and avoid annoying customer service calls from debt collectors. Instead of having to write out checks or transfer money via snail mail every month (which sometimes takes days), you can just send electronic payment through your bank account or credit card login directly through your web browser or mobile app without ever leaving home.
Online bill payments are also a great way to keep track of your finances since they’re all in one place and can be tracked electronically. You won’t have to worry about losing a checkbook or forgetting to write out a check and put it in an envelope to be sent. Just log into your account and send the payment right then and there. Typically, you can also set up recurring payments so that they payment is automatically deducted from your account on the same day each month.
ACH Fraud on the Rise, Costing Businesses Millions
ACH fraud is on the rise, costing businesses millions of dollars each year. In fact, it’s the fastest-growing type of fraud and has increased by nearly 30% over the last decade.
ACH transactions are irreversible and require a lot of information from both parties to verify an identity or payment method information. This makes them perfect targets for criminals who want to steal money from you or your company through unauthorized transactions (called “account takeover,”) which can be done undetected if they know how much money you have in various accounts at any given time.
The good news is there are ways you can protect yourself against these criminals—even if they manage to get into your account first!
Here are 4 important steps you can take to prevent fraud:
- Create a strong password that is different from all your other passwords. We know this is difficult, but it’s important! If you use the same password for everything, it only takes one breach to access all of your accounts. Use a combination of letters and numbers with capital letters at the beginning and end of each word; it will make it harder for hackers to guess your password.
- If you have a bank account with an ACH feature, set up two-factor authentication (also known as “two-step verification”). This is when you use something else besides your password to log in, such as a PIN code sent to your phone or a biometric identifier like fingerprint scanning.
- If you have an online account with a bank or credit union, set up login alerts. This is when your institution will send you an email or text message whenever someone logs into your account from an unknown device that you have not authorized.
- If you use online banking, do not click links or attachments in emails sent by your bank or credit union. These could be phishing attempts that lead directly to a fake website designed to steal your information.
How to Choose the Right Check-to-ACH Conversion Company
In order to keep up in this fast-paced industry, you need a reliable partner with a proven solution. When choosing a check-to-ACH conversion company, ask yourself these five questions to ensure you choose a provider that will help your business grow:
- What is the company’s reputation? – If the company has a long-standing positive reputation, it is worth it.
- How long have they been in business? – Time in business is crucial. We do not want to discourage you to working with new companies. But, if any company has been in the field for a long time and also has a good reputation, then you should consider working with these companies first.
- What awards and honors have they won over the years, if any?
- Who are their major clients who use their services regularly (and why)? Do they have good reviews?
- How much do they charge? – Some companies charge more, but have a good reputation. Some charge less but have negatives reviews from the past. Think about these points.
- How do they handle customer service and security issues, if any? – This is another point that will help you decide if the company is going to assist you in the future if you have any issues with the payments or their services.
- What type of solutions do they offer? Are they able to provide you with what you need?
While ACH is an important part of the check conversion process, it’s not all you need to be successful. Look for a provider that offers a wide range of solutions including:
A. ACH processing
B. Electronic payments (ACH & credit cards)
C. Direct deposit and payroll services
D. Mobile platforms accessibility
With all of these innovative technologies available, your business can continue to innovate by incorporating new functionality into your day to day operation. It’s important to stay on top of these things so that you don’t miss out on the latest trends and technologies. When considering which check-to-ACH conversion company to use, ask yourself these questions to ensure you choose a provider that will help your business grow.