For those who are not used to banking terminology, ACH payments are electronic payments made through the Automated Clearing House (ACH) Network. Using this type of secure method ensures that your transactions are done without any errors, fast, and saves a lot of time.
Automated Clearing House Payment
In layman's terms, ACH payment processing can be defined as electronic transfers from one account to another without the physical movement or changing hands of any paperwork. Some of the typical uses of ACH payments are when a customer pays the fees for web payment services provider; when a consumer moves funds from one bank account to another bank; salaries deposited in employees' accounts by employers, etc. These types of payments are also considered environmentally friendly, because there is hardly any use of natural resources like paper, ink; fuel, etc; all transactions being electronic.
ACH Technology Helps save Money
When buying products or services online, potential customers choose businesses that have good quality products and services, good after sales service, reasonable prices, and ease of payment methods. The ACH payment system is one of the pioneers in payment solution for business owners, as it helps them to accept credit cards as well as other types of cards, like debit cards, without any problem. Due to this property, you can widen your customer circle to include those who do not have credit card capability. ACH payment systems have caught on worldwide as businessmen have embraced it wholeheartedly as it has the advantage of making cash transactions and remittance processing processes safer, smarter, and faster.
Additional Security Features for Banks
An important feature that is incorporated in the process of monetary transactions is the MICR check; it is also known as magnetic ink character recognition, and is a property that uses a special ink and characters on the check. When a check is presented for payment, those characters are read as it passes through a machine, which magnetizes the ink and translates the magnetic information into characters. This technology has found great favor with banks, and it has been incorporated in their checks; the characters and numbers found on the bottom of a check are usually printed using magnetic ink, and it is these characters that are read by the high-speed scanner which processes all the relevant information. All of the above-mentioned features have helped the banking industry as well as the business community to move money around faster, safer, and without any trouble.