ACH (Automated Clearing House) payments have become popular largely because of their convenience, reliability and cost-effective solutions. ACH is a payment solution that accepts payments by moving funds from one bank account to another electronically through routing numbers. If your business is utilizing direct deposit to pay employees, whether you know it or not, you’re already using a form of ACH and are aware of these benefits. But how can ACH payments actually increase sales for your business?
- Convenience for Customers – What better way to make a sale than to offer a solution that will add convenience and ease to their payment processes? With ACH, customers no longer have to deal with paper invoices, paper checks or multiple trips to the bank. Customers will always appreciate the extra time they will be granted because of the convenience you provide them, and will come back to you over the competition due in part to your varied offering of payment methods.
- Recurring Bills – This is a more efficient method of collecting payments. Recurring billing decreases costs on the operational side because you will spend less time tracking down payments, and can contribute to increased sales by having more time focused on gaining new contracts. For products that apply under this model (subscription based products and services), a recurring fee provides customers with fewer hoops to jump through and makes prospective customers more inclined to sign up for your service. By offering ACH for recurring payments rather than just credit cards, you also benefit from consistency. People change their credit cards more frequently, and they have expiration dates, whereas bank account information rarely changes. In the most basic terms, recurring billing is easier on the customer, which makes them happier, which will result in more customer referrals and brand advocates.
- Set It and Forget It - To further the topic of recurring billing, when a customer receives an invoice and must physically write a check, it provides them ample time to have buyer’s remorse set in. Don’t open this Pandora’s box. There is no need because with Recurring ACH your bill is automatically withdrawn on a set schedule from an ACH setup. Instantly, the "out of sight, out of mind" philosophy kicks in, and your chances of retaining that client longer increase drastically.
- Efficiency – We have highlighted some of the reasons ACH is more efficient, such as the decreased time spent on collections, but ACH's ultimate efficiency is the speed in which you get paid. When using ACH you benefit from preferred funding, meaning electronic payments are always processed first. If a customer is paying bills both electronically and with paper checks, ACH funding will come through first. For many reasons this is extremely beneficial to your business bottom line, but even more so to confirm a sale - if a customer does not have enough money in their account to pay all their bills, the other party that received a paper check will have a bounced check while your business will have the cash.
ACH is just one of many ways your payment offerings can make customers happy while also making your revenue and sales numbers increase. Payment processing companies have long sought to reduce costs, and a payment processing company worth its weight will also seek to eliminate manual processes. Having a partner in your payment processing company means they will also strive to find ways to increase your sales revenue.
Whether your business is a NetSuite user or not, Solupay offers simplified payment solutions that work towards not only saving you money, but increasing revenue. Get a quote today to learn how we can help.