What if a business or consumer has reached or exceeded the spending limit on their credit card and is unable to make a payment on an item or service? How does the creditor accept payment from the debtor?
This is why, along with credit card processing, merchants need to offer ACH payments (short for Automated Clearing House) as a payment method.
Instabill has been plugging ACH payments for some time. So when we found the Apr. 14 article on NACHA.org about how B2B ACH payments grew by more than 15 percent from 2014-2015, it further validated our claim that every business should offer ACH processing.
One Big Advantage of ACH Payments
The term ‘data breach’ has taken on a broader meaning. It means more than the mass theft of consumer credit card information. It now encompasses consumer information in general: Social security numbers, e-mail passwords, medical records, banking information or anything that enables a hacker to infiltrate a consumer’s or company’s financials.
More than ever, consumers and businesses are on the defensive.
With that, we feel security is playing a role in the growth of ACH transactions. Not only can a business use the ACH network to make secure payments, but businesses can safely send information such as invoices, which they did nearly 10 percent more in 2015 than 2014.
There is further evidence that businesses and consumers want more security in payments: ACH bank transfers increased by more than 2 billion each year since the wave of data breaches in 2013.
Coincidence?
ACH and Direct Debit Transactions
Instabill recently partnered with a domestic bank to offer ACH payments and direct debit solutions – ideal solutions for subscription-based services, debt collection and membership services among other industries.
Our merchant account representatives will walk you through the ACH payment setup and remain on hand as consultants for the life of your merchant account partnership with Instabill. Reach them direct by clicking on the live chat option below, or calling 1-800-318-2713.
