Is ACH Payment Processing available?

Clients frequently ask if they should use ACH payment processing if the service is available through their business bank. After all, if a business bank offers ACH payments, is there any reason to use third party ACH payment processing company? Banks will sometimes provide ACH payment processing to larger clients. But ACH payment processing is not a product banks promote to clients. And most business banks do not provide ACH payment processing services to small to mid size companies.

Suppose you are a large company and your bank does offer ACH payment. Should you use it? It depends on the bank and also depends on what you want to accomplish with ACH payments. There are a few banks in the US that have excellent ACH payment processing services. But, these are the exception. The vast majority of banks have archaic ACH payment processing services. Banking software is designed banks and not for businesses or merchants.

Most banks with ACH payments processing can accept and clear ACH payments processing files. But, that’s extent of system ACH payments capability. Management, reconciliation and accounting functions available through bank ACH payment processing systems are almost useless for businesses and merchants. Automated returns, NSF, audit trails, and the capability to easily import and export ACH payments files into internal accounting systems are sadly lacking. Imagine the time, effort, loss of productivity and additional operational expenses you will incur translating raw ACH payments data from your bank into usable information.

Further, most banks do not have online reporting and management systems which streamline handling of ACH payment processing transactions. It’s an administrative nightmare to reconcile and track thousands of transactions without proper automated administrative support. If all you need is basic credits and debits ACH payment processing, you may be able to hobble along with your bank’s system. But, it is senseless not to take advantage of the full power of ACH payments which allows you to offer ACH payments as an alternative way customers can purchase from you.

What if you want to use ACH payment processing to accept checks online or take checks by phone? Or integrate ACH payments with credit card payments to increase sales? In this case, ACH payments through a bank are certainly not a good option. Most banks do not have the technology in place to integrate ACH payment processing with a website. Nor do the banks have a virtual terminal available to take ACH payments by phone. To accept ACH payments over the internet or accept checks by phone, third party ACH payment companies are one of the most efficient and effective solution.