PaySimple ACH payments only cost a flat $0.55 compared to the $1.22 it can typically cost to process a paper check, making it a cheaper alternative to debit or credit card transactions.
This is from the use of a flat fee instead of charging a percentage of the transaction. For larger payments, your savings are further increased and as you have more customers, those fees can add up!
For example, on a $500 transaction and a $1,000 transaction, the cost to process each ACH payment would still only cost you $0.55.
With ACH payments you can:
ACH payments are perfect for subscriptions, memberships, and other recurring payments.
You'll only have to accept payment information once before using a schedule to automatically collect funds in the future.
You'll love getting paid on time and your customers will appreciate how simple making payments can be. They give you their information once, and there's no more searching for their checkbooks or remembering it's time to pay a monthly bill.
ACH payments give you:
Free eBook Hot off the Press
The Ultimate Guide to Small Business Financial Management
PaySimple and Funding Gates teamed up to compile a much-needed weapon for your small business’ arsenal.
In this ebook, you’ll learn:
ACH payment processing keeps you and your customers safe through secure systems that encrypt all payments.
Once account information is entered, only computers process it moving forward. This reduces the risk of prying eyes or a paper check being left in an unsecure area.
ACH payments are also automatically tracked back to your customer records. With no manual reconciliation, your records will be less error-prone and customer information will be securely stored for future payments.
ACH payment processing maintains security by:
ACH stands for Automated Clearing House and is a centralized electronic funds transfer system that connects financial organizations nationwide. Billions of transactions are processed each year through the ACH network and it supports more than 20% of all electronic payments in the US.
ACH payments processed through the PaySimple system are processed using this secure, highly-reliable network, and it is also the same network used by federal bank and government institutions to securely transfer funds. The Federal Reserve acts as an ACH Operator through which banks transmit or receive ACH entries.
Put simply, the ACH network moves money from one bank account to another – electronically. Below is a detailed illustration showing what happens when your customers pay using ACH.
1. As the originator you would initiate a direct deposit or direct payment transaction through PaySimple using the ACH network.
2. The ODFI (Originating Depository Financial Institution) enters the ACH entry at the request of the originator and batches these entries to then send to an ACH operator at regular intervals.
3. ACH transactions are sorted and made available by the ACH operator to the RDFI (Receiving Depository Financial Institution).
4. Your customer's account, the receiver, is debited by the RDFI and funds are distributed to your bank.