In addition to paying with cash, checks, or credit and debit cards, there is now a faster and more efficient way to transfer funds.
Automated Clearing House (ACH) is what facilitates this seamless process. But is it safe for you to accept ACH payments in your firearms business?
What are ACH payments?
Also known as direct payments, ACH transactions are becoming extremely popular with consumers, utility companies, and business owners alike.
In fact, more than 25 billion of these credit and debit payments are conducted by an extensive network of banks and other financial institutions every year.
ACH is used to send, transfer, and receive money, including direct deposits, credit card, mortgage payments, and recurring billing. Unless there are insufficient funds or other difficulties, ACH payments clear within just a few days.
How ACH payments work.
Instead of being conducted through major credit card networks such as Mastercard or Visa, these payments occur over the ACH network. All U.S. financial and depository institutions are connected to the ACH network, enabling them to set up electronic withdrawals and deposits.
The process involves no paper whatsoever; the payee just needs an account and routing number from the payer, who authorizes the single or recurring transaction.
There are seven steps in the ACH payment process. First, the payer requests the transaction. Then they submit the entry handling the first phase of the transaction. The bank sends the entry, usually batched with numerous others, to an ACH operator.
The operator then sorts and correctly routs the payments according to type and then sends them to the destined bank or financial institution. Funds sufficiency is verified, and the originating institution is either debited or credited according to the request.
What businesses use ACH payments?
ACH has become widely favored by individuals and all sorts of business entities because of its convenience, accuracy, and efficiency.
Uses include paying employees via direct deposit, business-to-business funds transfers, consumer payments to online vendors, and utilities using a payment gateway, consumer transfers from bank account into merchants’ accounts, peer-to-peer payments between individuals and the payment of electronic tax funds into a consumer’s account from the IRS or state treasury.
Sellers of guns, ammunition, and paraphernalia are also embracing the convenience of ACH payments. Using this vehicle is safe and paperless, enabling you as the seller to rest assured that you will receive the money you are owed without delay or difficulty.
If you are interested in reaping the benefits of ACH payments for your gun store or website, talk to your firearm merchant account provider to be sure that your point of sale system is properly configured.
Before you know it, you will be able to offer your customers an additional, safe payment method.
