Electronic payment options offer many advantages for you and your advertisers. They are convenient, secure and fast. Payment portals allow customers to use different forms of payment, including credit cards and ACH (automated clearing house). The difference between these is the rates you pay for processing. ACH electronic payments are preferred because of the many benefits we’ll explore in this post.

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.

One example of this that’s universal is direct deposits of paychecks. Most workers (93%) get paid this way. Additionally, a B2B payments study found that 78% of companies make payments via ACH. Thus, it’s not a new concept, so explaining to your customers how it works won’t be confusing.

ACH Electronic Payments vs. Other Options

How do ACH payments stack up against paper checks and credit cards?

ACH vs. Paper Checks

There’s an actual cost to mailing paper checks, ranging from $2 to $4 per check. Those expenses include paper, ink and postage. ACH payments are more environmentally friendly and efficient for you and your customers.

Advertisers also eliminate the concerns of check fraud and reduce the chances of late payments, which could incur fees. They’ll receive an email confirmation of payment automatically for their records.

ACH vs. Credit Cards

Credit cards are a popular way to make online payments. Many businesses may have reward cards and prefer those for the benefits.

However, some may be using credit cards because they aren’t aware of ACH options. It’s crucial to communicate this and its benefits to your customers. Some things to advise them of include:

  • ACH is a secure electronic payment type.
  • The option is more reliable, as ACH failure rates are much lower than those of credit cards.
  • Paying directly from their bank account won’t add interest to existing credit card balances.

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. As a result, the process simplifies cash application. You’ll also spend much less time researching ACH transaction batches, which 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. These are near real-time transfers, which can be useful for pre-payments, 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 payments platform? Explore why PayNow makes dollars and sense!

ACH Electronic Payment FAQs

What are ACH payments?

An ACH payment is an electronic bank-to-bank payment. Customers can make these payments by inputting their bank account number and routing number.

Can customers make ACH payments in guest checkout?

Yes, advertisers can remit via ACH in guest checkout.

How secure is ACH?

ACH is a highly secure method, protected by all the security barriers within the payments portal. ACH payments go through clearing houses that enforce strict regulations as well. Be sure your payment processor has the highest level of compliance with PCI DSS. Learn more about electronic payment security and compliance.

Can you apply a surcharge to ACH transactions?

No. Surcharging is a percentage-based fee that depends on the transaction amount and only applies to credit card transactions; it is not permissible for ACH transactions.

Can you charge a convenience fee on ACH transactions?

Yes. Convenience fees are fixed dollar amounts that don’t change based on the transaction amount. You can apply these to ACH transactions. You must disclose these to the customer prior to the transaction and state them on the receipt.

Note: You should consult with an attorney to be sure you are following all federal and state rules and regulations regarding surcharging and convenience fees.

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