by: Bret Morrison - posted (or last updated): 8th, January 2009

ACH merchant account is an alternative to credit card processing. It is an automated check processing system whereby you use a software that prints your customers checks and you send it to your bank without a signature from your customers. Your customers have already agreed to paying you by ACH and therefore there is no need for a check.

ACH provides a convenient nationwide electronic funds transfer using the Interchange banking networks which provides for the interbank clearing of electronic payments. This convenient service is offered at 25 cents per ACH transaction.

Most banks that offer this service expect you to have a good clean record so that they can underwrite the checks while waiting for your customer's bank account to settle the checks and transfer payment to your business bank account.

ACH merchant accounts have many benefits:

Everything is automatic so you don't have to wait for your customer to send you checks
No need to make frequent trips to the bank to deposit checks
You can directly debit your customers' checking accounts after delivery of goods/services
This is a fast and efficient billing and collection process
Paper checks are eliminated and everything is converted to electronic checks for storage
No more hassle of losing paper checks in the mail or in the mailroom of your company
You can accept payment by phone, on your Web site, at seminars and conferences
Improving customer satisfaction through the convenience of ACH
Saves a lot time and unnecessary work
Saves money (cost to a business is $1 per paper check, and $0.25 for ACH)

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