ACH Processors – The Business Advantage

ACH, or Automated Clearing House is a secure network that connects all financial institution in the United States. It allows transactions for payments and debits to be completed electronically. Many businesses want to provide flexibility to their customers by offering a variety of payment options. When using ACH processors, they enable their customers to make payments by electronic check, debit cards and electronic funds transfers. There are several advantages for them to do this. The first is that they have faster access to funds than ever before. Traditionally, merchant banks would not release funds until there was confirmation that the account being accessed had the appropriate amounts.

This could take up to three weeks. Once ACH processors make the appropriate entries and confirm funds availability, the transaction can be completed within one to two days. As the entire transaction takes place electronically, it is also more convenient for businesses. They do not need to be concerned about returning unsigned checks, maintaining a staff that is responsible for double checking the account information, filling out deposit slips and taking them to the bank for deposit. Money is transferred directly into the proper account with almost no manual intervention needed. This also makes it cost effective.

If your business is just beginning to research ACH processors, consider contacting the financial institution where your accounts are held. The customer service representatives are usually familiar with the various business services and may be able to provide you with a list of providers or some recommendations on how to start your search. They may even have a list of questions to ask. The primary role of third party processors is to receive files in the approved format from the Originating Depository Financial Institution (ODFI), process them and deliver them to the Receiving Depository Financial Institution (RDFI).

Not all ACH Processors are created equal. The type of services offered and processes used to complete transactions vary from one firm to the next. Choose an organization that has a history of providing quality customer service. The products they utilize should simplify your day-to-day duties rather than complicate them. Secure batch file processing, web payments and real-time processing are points you should ask about before signing an agreement. The Automated Clearing House network allows electronic transactions to be completed quickly and efficiently. Businesses that utilize the network can receive or send payments and know that the funds are being transferred securely.

Payment Processing – What Happens When You “Swipe”

You go into your favorite coffee shop, order your drink, grab a muffin, and swipe your card. This is your morning routine, but have you ever considered how the money gets from your account to that of the coffee shop? Payment processing is the method used to enter details of a credit card or check into a system that allows funds to be verified and removed from one account and put into another. There are several steps taken in just the few seconds it takes to swipe and confirm. When the card is run through the point of sale machine, the magnetic strip on the back is read.

This strip contains information specific to your account, such as name, billing address, account number, card verification code, and expiration date of the card. Once the card is swiped through the point of sale machine, the amount of the sale is entered and a request is sent for authorization to your bank. If there are sufficient funds in the account, the transaction is approved. Most businesses batch their transactions for settlement. Once they have been submitted, the funds are usually in the coffee shop’s account the next business day. Each merchant who participates in payment processing has a responsibility to the cardholder.

The Payment Card Industry (PCI) Data Security Standards are the requirements that vendors must adhere to when handling credit card information. It also mandates the classification of merchants and creates validation methods to confirm compliance in payment processing. There is certain information that they are prohibited from storing, either directly on their systems or by using third party services. This helps to ensure the safety of customer information. Merchants are highly motivated to do so as they are held responsible for damages or liability that occurs as a result of a data security breach. The “Standards” apply to all merchants and third party providers that have access to customer data.

If any of these organizations are found to be out of compliance with the PCI Data Security Standards, significant fines can be levied as a result. To become part of a payment processing program, merchants sign a contract with a bank or other financial institution. If they are found to be out of compliance, not only are they fined, the financial institution is fined. The contracts obligate them to reimburse this institution for fines in addition to paying the fine for themselves. This furthers their motivation to maintain high levels of security for your personal and financial data.

For more information please contact us at www.NationalProcessing.com or call at 800-403-8182.

Check Processing Services – Saving Sales and Increasing Revenue

We are in the midst of what is referred to as the Internet Age. It is a time when most people are using online services to do their shopping, pay bills and achieve college degrees. Even though millions of people are taking steps to become paperless, there are still consumers who prefer to use checks to pay their bills. This is especially true when talking about in-person, point of sale purchases. If your business is still struggling with the traditional method of processing checks, you may want to consider using a company that specializes in check processing services.

Accepting checks can be cumbersome for the retail store. In some cases, it is necessary if they want to encourage sales. There are many advantages to using check processing services. Most can offer organizations different options that will meet their volume and pricing needs. Remote deposit capture, which was made a legitimate part of the financial industry by the passing of the Check 21 Act, allows checks of all types to be deposited remotely. The service company you select can provide you with a check imager and software that ensures secure access to the proper gateway.

Electronic Check Conversion (ECT) provided by check processing services makes it fast and easy to accept checks. The check is converted to a paperless format and moves funds from the consumers account to yours with the same security and speed that debit and credit card purchases use. This type of program eliminates the need to wait for the funds to be confirmed and clear before the transaction is completed, which can take several days. Returned checks and the fees that accompany them are removed, reducing much of the cost related to check acceptance. Once the customer’s information is entered into your point of sale system, authorization is received within seconds.

During those few seconds, millions of records are accessed nationwide to confirm that funds are available and that there are no issues related to unpaid checks. This helps your business defend against fraud as well as reduces the fees that accompany non-sufficient funds. Swiping a debit or credit card for many people is the fast, convenient means to make their point of sale purchases. However, not all consumers are comfortable with that option. As a result, many still use checks to pay for purchases. Using check processing services provides security and protection to your business and decreases the time frame for settlement.

EFT – Reducing Fees, Increasing Efficiency

EFT or Electronic Funds Transfer is a paperless method used to transfer funds from one account to another. The accounts do not need to be at the same bank for this to occur. Although the term refers to any type of paperless transfer of funds, one of the most widely used transfer programs is for Direct Deposit. An employee’s paycheck is deposited directly into their account without the need for checks to be printed or a trip to the bank to be made. This is cost effective for employers as well as convenient for the employees. These transfers take place through the Automated Clearing House (ACH) network.

This network, comprised of 34 regional associations, allows for many types of EFT. In addition to direct deposit, charges made to debit and credit cards are routed from the consumer’s account to the vendor. Electronic transfers of recurring payments can also be made. This includes monthly membership fees, utility bills and mortgage payments. It is becoming increasingly more common for businesses to pay their vendors via electronic transfers as well. Payments are received more quickly and processing costs less. It has become standard practice for many businesses to arrange for their taxes to be paid electronically.

One of the primary benefits to using EFT is that it is less expensive than traditional payment methods. There is no manual sorting of checks or deposit slips that need to be made out. As a result of automation, there are fewer personnel requirements. This also translates to fewer banking errors being made. Another benefit is that electronic transfers are convenient. Bills can be paid, funds transferred from one account to another, and accounts balanced without a trip to the bank. No longer does time need to be spent making out checks, addressing envelopes, buying stamps and going to the post office.

EFT can drastically reduce the amount of time it takes for transactions to be completed. Whereas it used to take up to two weeks for checks to work their way through the system, it can now be done in a few days. This helps cash flow to remain steady, especially when referring to the scheduling of recurring payments. Consumers can ensure their payment is made on time so that late fees are not assessed and ask for confirmation that payment has been received. Businesses can plan for revenue, allowing them to take a more active role in their financial planning strategies.

Merchant Account – Getting the Most Out Of Your Merchant Account

One of the most important things that you, as a small business owner can do for your business is establish a merchant account with a payments processing provider. Setting up an account will allow you to accept payments from your customers from a variety of different sources, including credit cards, debit cards and ACH payments. Today’s consumer appreciates having flexibility in how they pay for the goods and services that they use and are more likely to patronize a business that allows them to use the payment method of their preference. If you want to see your business grow, this is an important step to take.

Today’s uncertain economic times have led people to use alternative methods of payment for different goods and services that they purchase. A business with a merchant account has the opportunity to capitalize on those different payment methods and reach a wider range of consumer. Studies show that consumers that use credit cards to pay for their transactions typically spend more than they do when they are purchasing something using cash or a check. The knowledge that they can defer the payment makes them more amenable to spending a little extra, which benefits you, as a small business owner.

Businesses looking to establish a merchant account have many payment processors available to them. Some specialize in providing accounts to ecommerce or internet businesses, while others offer premium services for brick and mortar or face to face businesses. Most processors will provide some sort of online reporting portal to enable their merchants to access their account, in real time and see what payments have posted to their account. The wide variety of processors helps keep credit card rates competitive, which serves to your advantage as a small business owner. Shopping around and finding the best rate for the best bundle of services is a really important exercise in getting your business up and running with electronic payments.

Another important determination that you need to make is whether you want to accept more than just credit cards with your merchant account. Check acceptance, debit cards with a PIN number and even EBT are valuable services that you can have bundled into an electronic payments account. Most processors can advise you on what types of payment are most common for your business type and help get you pointed in the right direction, so that you can get rolling with electronic payments.

For more infomation please contact www.NationalProcessing.com or call us at 800-403-8182.

ACH Payment Processing – Secure, Easy, Convenient

For business owners looking to give their customers the most options when it comes to payment methods, it makes good sense to offer ACH payment processing. Fast, secure and reliable, ACH payments are a quick and easy way for your customers to get funds to you and an affordable way for you to give them flexibility. Suitable for one time payments or recurring auto drafts, these payments are a great way to help any business grow in today’s uncertain economy. Many customers prefer to use pay via ACH over any other method, so offering them is a great way to encourage new customers to patronize your business.

An ACH payment is an electronic form of payment that draws fund directly from one bank account to another bank account. Similar to a check, it offers both the payer and the payee security and peace of mind, knowing that their funds are being transferred through the secure Federal Reserve and Electronic Payments Network. Called an automatic clearing house, the Fed’s secure network takes all incoming ACH requests and routes them to and from the proper banks. ACH payment processing allows your customers to pay you today, with cash from their bank account, rather than having to withdraw cash, write a check or use a credit card, which will accrue finance charges.

For your customers, ACH payment processing offers many benefits. Not having to write a check means that they can save on postage and the worry that the check might not make it to its intended destination. Because an ACH transaction is automatic, and is coordinated with their bank directly, there is also no risk of a payment overdrawing their account. Opting for an ACH payment also means that your customers can avoid having to use their credit card to pay for goods and services, which saves them on interest and finance charges that would normally accrue.

As a business owner, offering ACH payment processing also protects your interests. Not having to take checks means no more bounced checks. Not having to take a credit card payment means you don’t have to pay interchange on the transaction, transaction fees on an ACH payment are typically much, much lower. If you are a service provider, being able to offer recurring payments for services that you offer, such as cleaning services, monthly pest control or childcare helps ensure that you get paid on time, every month.

Electronic Payment Processing – Opening Your Doors to More Customers

The question “paper or plastic” used to refer strictly to what kind of shopping bag you wanted to use when you checked out at the grocery store, but today it means much, much more. In today’s business landscape, paper or plastic more frequently refers to payment method, meaning whether your customer wishes to pay by cash or check – paper – or by credit or debit card – plastic. Increasingly, more and more consumers are option for plastic or even none of the above, favoring methods of electronic payment processing for the goods and services that they purchase and pay for on a day to day basis.

The implication of this for merchants is huge. If you own a deli or another kind of face to face business, chances are that you started out by accepting only cash for payments. This may have worked fine in the beginning, but as your business expands, you may well find that you need to accept credit and debit cards in order to continue growing your customer base. Many people simply do not carry cash anymore, so if you want to be able to cater to those people, you will need to accept credit cards. Electronic payment processing will allow you to accomplish this.

Other kinds of businesses can profit from electronic payment processing as well. Ecommerce businesses have long accepted cards as they have very little other means of receiving immediate payment. Today, more and more of these businesses are also accepting ACH payments from their customers, so that they can do business with consumers who don’t wish to use a credit card. An ACH payment is a direct withdrawal from a bank account, through the Federal Reserve Banks’ proprietary secure network. Many merchants use this to allow their customers to set up recurring monthly payments.

Growing your business today takes a lot of patience and hard work. Without expanding the payment options that you offer to your customers, you may well find that growth becomes stunted. Electronic payment processing provides you with a means of offering your customers with multiple ways to do business with you. The more options you offer, the more customers your business will appeal to. The more customers your business appeals to, the more business you will do. The more business you do, the bigger and better and stronger your business will grow, and at the end of the day, isn’t that what we all want?