What Are The Benefits Of ACH? The Pros & Cons For Small Business
Adding ACH as a payment method could be a smart move for your business, but it's not ideal for every situation. Make sure to know the benefits and drawbacks before making your decision about this payment option.
ACH (Automated Clearing House) payments are one of the oldest ways to move cash between accounts. While most payment methods, including credit cards, are ultimately settled with ACH transfers, it’s much less common for small businesses to make more direct use of them.
In this post, we’ll discuss the benefits and drawbacks of ACH payments for small businesses, as well as which businesses should consider adding them to their payment method arsenal.
ACH Benefits & Drawbacks
While there are many advantages to using ACH, this payment method won’t be a good fit for every small business or for every transaction. Let’s take a look at some of the pros and cons of ACH payments.
Here’s why you should consider using ACH in your business.
Before using ACH, keep these potential drawbacks in mind.
Should Your Small Business Accept ACH Payments?
Ready to add ACH payments to your payment options? Check out our top recommendations for online ACH payment processors. If you’re still not certain if ACH transactions are right for your organization, we’ve broken it down for you here.
Remember that even if you’re not sure ACH payments are a good fit for your business, it may cost you nothing to add it as a payment option. And more payment options usually are better than fewer.
You Should Add ACH Payments If …
- Your customers have recurring orders
- You sell subscriptions or memberships
- You process B2B transactions
- You have a majority of repeat customers who purchase regularly from you, even if their orders and transaction totals vary
- You operate a high-risk business that currently cannot qualify to accept credit and debit card transactions
- You are looking for an alternative to high credit card transaction fees
- You want to encourage on-time payments, without having to chase them down
You May Not Benefit As Much From ACH Payments If …
- Most of your sales are from one-time customers
- The majority of your sales are face-to-face transactions
- Overseas transactions are a significant portion of your sales
- Instant revenue is enabled by your bank, eCommerce platform, or payment processor