Best ACH Payment Processing for Small Business: How to Choose
Automated Clearing House (ACH) payments are a very important payment method, which can enable small businesses to accept bank-to-bank transactions.
More often than not, ACH payments are more affordable than credit card payments. Small companies in industries like SaaS, membership, and service based businesses frequently use ACH payments.
“ACH payments are a win-win for businesses and customers. They’re secure, cost-effective, and allow for efficient, automated recurring billing, which is invaluable for subscription-based models.”
– Jason Gardner, CEO of Marqeta
Stay with us, as we reveal how to pick the best ACH payment processing for a small business.
Best ACH Payment Processing for Small Business: How to Choose
- Fee Structure
- Processing Time
- Security and Compliance
- Integrations
- Ongoing Billing Support
- Customer Support
- Reports and Analytics
- Reputation
1. Fee Structure
When it comes to small businesses, finances always need to be smartly balanced, understanding the fee structure is important. Generally, ACH fees are lower than credit card fees, but this can vary depending on the processor.
Always make sure to keep an eye out for setup fees, monthly fees, pre-transaction fees, and any hidden costs. Go for a processor that has transparent pricing models, and that is affordable for small businesses as well.
“ACH is especially attractive for high-volume businesses due to its affordability compared to card payments.”
– Bruce Lowthers, CEO of Paysafe
2. Processing Time
Typically, ACH transactions take from 3 to 5 business days to process. However, if your business needs quicker access to its funds, look for companies that process transactions quicker.
In any case, it’s always best to pick an ACH payment processing for small business that offers faster settlements, so that you can improve your cash flow management.
“For small businesses, the ability to access funds quickly can make a big difference. Many ACH providers now offer expedited settlement options, which can help businesses maintain steady cash flow.”
– Reggie Aggarwal, CEO of Cvent
3. Security and Compliance
Of course, ACH payments involve sensitive banking information, so it is mandatory to ensure compliance with security standards like PCI-DSS and Nacha.
Respectively, you should always prioritize the safety measures your processor provides. Don’t settle for anything less than the best features (encryption, tokenization, fraud monitoring, etc.)
As Nacha (National Automated Clearinghouse Association) themselves state: “risk management and compliance in the ACH network protect both consumers and businesses.”
4. Integrations
ACH payment processing for small business is not just about accepting bank-to-bank transactions. To be efficient, it must also successfully integrate with your existing systems, such as eCommerce platform, accounting software, invoicing, etc.
Essentially, look for a processor that cuts down your manual work through automation and can effortlessly integrate with your workflow.
5. Ongoing Billing Support
Subscription-based companies need recurring billing support, due to the nature of their business. If that is the case with your small business, you should look for a processor that provides automated billing, customer portals for subscription management, and so on.
The implementation of such functionalities will help you reduce churn rates and improve the overall customer experience.
6. Customer Support
Being able to rely on good customer service is always a positive. Even more so when it comes to serious issues that directly impact your business financially.
When complex payment issues occur, having knowledgeable and responsive support can save you a lot of time and eliminate unwanted stress.
“The right payment processor should act as a partner, offering support that’s responsive and knowledgeable. Businesses should prioritize providers known for their reliability and customer service.”
– Penny Pennington, Managing Partner of Edward Jones
7. Reports and Analytics
Small businesses can better manage their finances and make informed decisions if they have access to actionable data from ACH transactions.
With the help of detailed reports and real-time analytics, your team can get insights into customer behavior, recurring payments trends, and tons more. Don’t underestimate the importance of such data, as it can prove to be extremely valuable for business planning.
8. Reputation
Last but not least, the reputation of your ACH payment processing provider is not without significance. Choosing a reputable provider with proven reliability can help you avoid unwanted payment interruptions.
Electronic Transfer, for example, has a proven track record. It has been doing business successfully for over 30 years, and has helped 50,000+ merchants excel with their payment processing.
Essentially, putting yourself in the hands of a reputable company like ETI, will add an extra layer of trust and confidence to your small businesses.
Ultimately, though, not all ACH processors are perfect for every business. It all depends on your goals, budget, and planning.
“Each ACH processor brings something unique to the table, whether it’s integration, lower fees, or additional tools. It’s all about finding the one that aligns with your business’s goals and budget.”
– Ben Chestnut, Entrepreneur, Former CEO of Mailchimp
Is Electronic Transfer the Right Fit for Your Business?
ETI looks forward to the opportunity to help small businesses grow their business. Our ALT-ACH processing services can easily be integrated into your existing payment systems.
We not only keep your data safe with advanced encryption technology, and data protection measures; we also support a wide variety of payment methods, including e-checks, ACH transfers, and EFTs.
Our technical support team is entirely dedicated to supporting your operations, and making sure the payment side of your business is compliant and runs smoothly. We strictly adhere to PCI DSS requirements.
Electronic Transfer is indubitably one of the best ACH payment processing companies out there. However, don’t just take our word for it. We’d love for you to try out and see for yourselves!
With our month-to-month agreements, simple rates and straightforward pricing, not to mention being absolutely free to get started, you’ve got nothing to lose and everything to gain. Try us out today!
We know you will be satisfied with the results!