EFT, ACH & EChecks
ACH payments, EFTs, and eChecks, what makes them different? As a business owner, understanding payment processing and what makes them different will help you choose the best bill pay process for your business.
Let’s discuss how they relate to each other, and how can you use them to simplify your business bill pay process.
What are EFTs?
EFTs, or electronic funds transfers, are just what they sound like, deposits or payments that are made electronically from one bank account to another.
Main types of EFTs:
- ACH transfers
- Wire transfers
- Virtual card payments
- eChecks
What are the Benefits of EFTs?
Every transaction starts somewhere. EFT transactions are easy, convenient, and usually very straightforward. As a digital transaction, there is no need for paper documents. Because EFTs have fewer human touch points throughout the process, it lessens the chance of human error and fraud.
Once the transfer is initiated, the request channels through a series of digital networks from either the internet or a payment terminal to the sender’s bank, and then to the receiver’s bank. Most payments are complete within a couple of days. Fast and simple.
What is ACH?
ACH stands for Automated Clearing House. The ACH is a network of financial institutions whose intent is to provide security in the transfer of funds. These transfers usually take about 2-5 business days to process, but more and more ACH transfers can now be processed as same-day payments.
How does ACH Benefit a Business?
ACH payments allow businesses to pay their bills and invoices quickly and securely. As a type of EFT, any ACH payment comes with all the same benefits of EFTs generally, faster, cheaper, and safer than using paper checks.
What is an E-Check?
One way to keep money flowing into a business is to accept payment types that are convenient for both businesses and their customers. An eCheck is one such payment option.
An eCheck is a digital version of a paper check and is also known as an electronic check, online check, internet check, and direct debit.
These electronic payments use the Automated Clearing House (ACH) to direct debit from a customer’s checking account into a merchant’s business bank account, with the help of a payment processor.
How does an eCheck Benefit a Business?
Simply put, eChecks are transmitted electronically, making transactions quicker, safer, and easier.
This option provides customers with a positive customer experience with the ease and convenience of automatic payments.
What Would Work for You?
Going paperless no matter which form of electronic payment you choose is your best option.
No more writing paper checks.
There’s no need for paper, it lowers your costs, improves your cash flow, increases bill pay efficiency, and makes it an easier process for your customers.
Final Thoughts
The more payment options a customer has, the more likely they are to spend their money and return to a business.
If you’re interested in learning more about electronic payment options, we are here to help.
Connect with us today to learn more about what we do and how we can help you grow and thrive! We always offer free consultations. Take the first step and schedule a time to speak with one of our professionals here
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