What Are ACH Electronic Payments?
An ACH is a network for moving money between bank accounts across the U.S. The National Automated Clearing House Association governs this system. They also have oversight in ensuring safe and effective payment systems.
An ACH payment is an electronic bank-to-bank payment. It’s an alternative to credit cards and wire transfers. For advertisers to submit an ACH electronic payment, they input their bank routing and account numbers within a secure portal.
What Are the Benefits of ACH Electronic Payments?
Both you and your customers can enjoy the benefits of ACH electronic payments. Here’s a review of the top ones.
ACH Payment Advantages for Media Companies
First and foremost, you’ll appreciate the lower processing fee. ACH rates are much lower than credit card rates since credit card companies aren’t involved. It’s a significant difference that enables you to keep more of the money you earn.
Reconciling payments is also much easier. In Marketron Traffic, it automatically does so. In Visual Traffic and RadioTraffic, it links the payment to the invoice. The process simplifies cash application as a result. You’ll also spend much less time researching ACH transaction batches, as they often don’t provide enough detail. These features are available through the PayNow integrations with our traffic platforms.
The system updates customer statements once the transaction is complete, so there’s no confusion about what’s currently due.
You and your customers receive notifications of receipt of payment, ensuring clarity and transparency around payment processing.
One more benefit is that you don’t have to do any account setup for customers. You direct them to the PayNow portal to make payments.
ACH Payment Advantages for Advertisers
Your advertisers can also yield benefits by using ACH. They have complete control over how they remit payments. Payments apply to invoices they choose. As a result of this streamlined workflow, the risk of human error decreases significantly. You don’t have to make assumptions about what they want to pay, eliminating the chance of friction.
ACH electronic payments in PayNow are highly secure at Level 1 PCI compliance (the highest possible). Advertisers can have assurance that entering their account information is safe. They can either do this by creating an account or using guest checkout. Both options require only a few clicks to complete.
As noted, they receive an email notification of the payment details. It provides a documented record to provide to their accounting department. Additionally, these are near real-time transfers, which can be useful for prepayments, last-minute spot buys and meeting deadlines.
ACH payments also don’t come with surcharging. If you have that in place now, it may deter electronic payments. To drive greater adoption, talk to your clients about ACH payments versus credit cards.
Encourage Advertisers to Use ACH Payments
Now that you know about the benefits of ACH, you can share this information with advertisers. They likely already use this payment type for other purchases. They may not know they can pay this way, but it’s a current option if you’re using PayNow.
Want to learn more about our payment platform? Explore why PayNow makes dollars and sense!