B2B Payments in 3 Years. Check or ACH?

Jul 20, 2017

In recent years, the payments industry has witnessed some dramatic developments. New technologies aimed at facilitating payments appear in the market and going mobile accounts for a lot of innovation.

According to 2016 AFP Electronic Payments Survey, 51% of companies’ B2B payments were still being made by check. Smaller companies generating less than $1 billion revenue annually and companies with up to 1.000 B2B payments per month were more likely to use checks to disburse payments as compared to other companies.

Results by the Credit Research Foundation

The Credit Research Foundation has recently reported the results from a first-quarter survey. This is a non-profit association of credit and accounts-receivable executives, with support from ACH governing body NACHA ─ The Electronic Payments Association. The CRF survey included 130 US member at companies generating $100 million to over $1 billion in annual revenues and operating in various industries.

According to the CRF survey, checks now represent nearly half of B2B payments. However, their share is expected to go down to 34% by 2020 since ACH (automated clearing house) payments will reach 45% from 32% of today’s B2B payments in the upcoming 3 years.

Rob Unger, senior director of corporate relations and product management at Herndon, Va.-based NACHA, says the major growth associated with ACH payments expected by credit and receivables professionals in 3 years is really notable. This means the importance of ACH payments to support growing needs and goals of businesses is increasing. The thing that they’re electronic makes them more cost-effective as compared to other payment options. Moreover, they are received quickly. Both accounts-payable and accounts-receivable professionals are becoming more and more interested in ACH payments.

If you’re looking for a reputable payment processor that offers ACH check processing, emerchantbroker.com can be the best option. EMB is voted the nation’s #1 high risk processor and is also a respectable business loan provider. EMB has an A+ rating with the BBB and is rated A by Card Payment Options. Moreover, EMB is named one of Inc. 500’s Fastest Growing Companies of 2016.

The CRF survey results also show:

  • Cards will capture 12.5% of B2B payments by 2020. This is up from the existing 11% and 8% in 2014.
  • Cash and wire transactions will take 8.5% of payments in 3 years as compared to 8% in 2017 and 7% in 2014.
  • The ACH was the preferred method of receiving payments for almost 80% of the survey participants.
  • 45% of them reported some of their customers weren’t able to send ACH payments.
  • 34% said even though their customers were capable of sending ACH payments, they didn’t send remittance with them in a proper way.
  • 21% didn’t have the necessary systems or resources to use the ACH effectively.

Taking all this into account, you should find a reputable payment processor like EMB to apply for ACH payment processing so to be able to take your business to the next level.


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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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