Connect with us

Hi, what are you looking for?

Finance

Why ACH Payment Processing Is Cheaper Than Credit Cards

Img Source - Levro

When it comes to sending and receiving payments, businesses have a range of options, including credit cards, checks, and electronic funds transfer (EFT) methods like ACH payment processing.  ACH, or Automated Clearing House, is the largest bank to bank payment network used in the US and overseen by Nacha. While credit cards have become a popular payment method for many businesses, ACH payment processing offers a range of cost benefits that make it a more affordable option for most companies. In today’s article, we’ll explore why ACH payment processing is cheaper than credit cards and how companies can save money by leveraging this payment method.

Why Are ACH Payments are Cheaper Than Card Payments

Learn why ACH payment processing is a more cost-effective option for businesses than credit card processing, and how your company can save money by leveraging this payment method. Keep reading for our top reasons ACH payments are cheaper to process than credit cards: 

Lower Processing Fees

One of the key reasons why ACH payments are cheaper than credit cards is because of the lower processing fees (source). Credit card processing fees can range from 1.5% to 3.5% of the transaction amount, while ACH processing fees typically range from $0.25 to $0.75 per transaction. This means that businesses can save a significant amount of money by using ACH payment processing instead of credit cards.

Reduced Chargeback Risks

Another advantage of ACH processing is that it carries lower chargeback risks compared to credit cards. Chargebacks occur when a customer disputes a transaction, resulting in a refund of the transaction amount to the customer. Chargebacks can be costly for businesses, as they can result in additional fees and lost revenue. ACH payments have a lower chargeback rate compared to credit cards, making them a more secure and reliable payment option.

Simplified Payment Processing

Finally, ACH payments can simplify payment processing for businesses. With ACH payments, companies can set up recurring transactions and schedule payments in advance, which can save time and reduce administrative costs. ACH payment processing can also integrate with accounting software, making it easier for businesses to manage their finances and track their payment activity.

ACH Payment Processing: The Cost-Effective Alternative to Credit Cards

Ultimately, ACH payment processing is a cost-effective payment option that can help businesses save money and improve their payment processes. With lower processing fees, reduced chargeback risks, faster payment processing, and simplified payment processing, ACH payment processing is an excellent alternative to credit cards for businesses of all sizes. 

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Internet Marketing

While there are tons of must-dos when it comes to optimizing email deliverability, there are also don’ts every company must adhere to. This post...

Business

In a time where companies need to become more efficient, the HR department is very often an area that lags behind in terms of...

Business

When it comes to taking a political stand, for-profit companies and individuals tend to stay neutral rather than publicly express explicit political opinions. The...

Tech

Companies and individual professionals can gain numerous advantages by using online transcription services. Hiring a professional transcribing service allows you to save time and...