ACH is the least expensive payment processing options for merchants. When a buyer chooses to pay by ACH, merchants save big. Rather than paying credit card companies over 2% of the sales price, merchants add that 2% of bottom line profits.
ACH has become a generic term referring to payment processing where money is direct debited from a buyer’s checking or savings account. ACH payments for ecommerce are classified web transactions and are frequently called electronic checks or echecks.
Merchants that offer multiple payment options experience a sales lift for each alternative payment option. Echecks are the most popular alternative payment option and increase sales 8-20%, depending upon industry and product being sold. Therefore, it certainly is wise to offer ACH as a payment option.
But, with ACH, merchants profit two ways. First merchants increase sales. Secondly, merchants getting paid via ACH rather than credit cards save on payment processing costs.
1 comments:
Thanks for this informative post. Can you share the net fees that a merchant would have to pay for processing ACH-based products? A post (http://www.paymentsnews.com/2007/09/nacha-announces.html) I had come across about the NACHA's SVP product had identified merchant paying significant fees, especially for transactions in the $20-$40 range (which is large chunk of the volume).
Post a Comment