Accepting Checks Using ACH

One of oldest forms of payments is the paper check. For years merchants have accepted paper-based checks and hand carried them to the bank to deposit into their bank accounts with fingers crossed that the check wouldn’t bounce. The use of Automated Clearing House payments, or ACH for short, has improved cash flow by drastically shortening the time it takes for the money to show up in your bank account.

Benefits of Using ACH

Using ACH gives an edge of convenience for you and your customers.  Payments are quickly processed without the need for an actual paper check. Merchants receive funds faster than waiting for a paper check to go through the slow-moving process between banks.

How Does ACH Work?

ACH payments are used to transfer funds from one bank account to another. If you have ever used Direct Deposit to pay your employees, you have used ACH. Funds move through the ACH Network with the funds deposited into the receiving bank account within a few business days. The simplest explanation is that funds are moved without using a physical check, credit card, or debit card.

The process is ideal for customers who pay you on a recurring basis. Direct Payment via ACH is used for customers to pay for those recurring services or payments. A customer can pay through ACH Credit or ACH Debit. ACH Credit pushes the funds into an account, while ACH Debit takes money out of an account. Customers would use ACH Debit for recurring bills they want to put on autopay, and their account would be debited every month on the specified date. For a one-time payment, they would use ACH Credit.

Can ACH Payment Processing Help My Business?

Yes, it sure can! ACH payment processing saves your business and yourself time and money. You can track expenses and cash flow, especially if you use recurring billing or invoicing. ACH payments are a better alternative to expensive wire transfers and are free for your customers.

ACH is also less expensive than processing credit card transactions. For merchants, ACH services cost less than $1 per transaction, no matter how big the transaction is. Interchange rates for credit cards vary depending on the card brand, and the more credit card transactions you have, the more they will cost you as a merchant.

You just need your customer’s banking information to use ACH payment processing.

How Do I Add ACH Payment Processing?

Chosen Payments can set up ACH payments at your business by facilitating the actual payment and depositing the money into your bank account. Using ACH payments lowers your processing costs. You will pay a one-time transaction fee no matter how big the transaction is. Whether it’s a one-time payment or recurring billing, you can set up ACH through a virtual terminal and track payments accurately. ACH payments are a secure way to get paid faster and receive funds more quickly. It’s a smart solution for managing your business operations and your cash flow!

If you’re ready to learn more about how ACH works, call Chosen Payments at 855-4CHOSEN or visit our website at

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