ACH Electronic Debit

Dec 28, 2018

Wondering whether you should use ACH electronic debit for payment processing or not? What benefits or weaknesses does ACH billing have? Well, no worries! This article will tell you what ACH debit means and where you can get approved for ACH transactions fast and easily.

ACH Electronic Debit: How to Make Reliable ACH Transactions

ACH (Automated Clearing House) payments are being processed electronically and remove money right from your checking account. So, no need to write out a paper check or make payments using a debit/credit card since you deal with automatic removal of funds. ACH can make things easier for you. However, like with anything in nature, there may also be some drawbacks.

To be more specific, ACH debits occur when the merchant electronically withdraws funds from a bank account. This is like deducting funds in a certain amount. Be aware that this type of transactions refers both to the public and private sector.

To make an ACH payment, you should authorize your biller. As a rule, you’ll need to do this once you’ve provided your bank account and routed numbers for your checking account. To give your authorization, you’ll need to enter into an agreement with the biller. Mostly, you’ll be given an online or paper form, but you can also do this using the phone.

Be aware of the following payment types:

  • Automatic Payments

In this case, your biller will remove funds from your account when it’s due time for paying the bill, which will usually happen each month.

  • On-Demand Payments

In this case, you just establish a link between your biller and your bank account, thus getting an opportunity to take control over your account.

To enjoy secure, affordable, and reliable ACH electronic debit, consider applying to eMerchantBroker.com, the #1 high risk processor in the US. EMB is rated A+ by the Better Business Bureau and A by Card Payment Options. With EMB, you can be sure to get the right payment processing solutions geared to your own specific business needs since eMerchantBroker.com talks to each merchant to offer the best deal.

To start, you’ll need to provide authorization through mail order, fax, or face-to-face. The transaction information will then be uploaded to the processor either via a payment gateway, a virtual terminal, or a batch file transmission. Finally, the funds will electronically be debited from the target checking account.

ACH Billing: Important to Know

Here’re several important point, including benefits, to bear in mind concerning ACH billing:

  • The direct deposit mentioned above is also referred to as “credit to the account,” as opposed to a debit, which implies fund withdrawal from the account.
  • Mostly, ACH transactions are more affordable for merchants than credit/debit card transactions if the merchant is being charged a flat transaction fee. The larger the average ticket, the more the savings.
  • With ACH billing, you don’t need to worry about incurring a non-qualified surcharge on transactions.
  • Both ACH billing and debit card transactions come out of the customer’s bank account, however, they feature a different processing form.
  • You can “forget” about making a payment.
  • Don’t worry about writing out checks.
  • You can easily do without payments in the mail and paying postage.
  • Don’t worry about when the payments will be delivered by the postal service or lost mail.
  • Ease of payment tracking.
  • More environmentally friendly.
  • Sometimes, ACH payments will return as non-sufficient funds or NSF.
  • Like with any other type of payment, you can’t do without having authorization from your customers.

And more.

Some of the drawbacks include:

  • You’re not the only person accessing the information about your bank account (plus your account number)
  • Being charged more than usual because of the biller’s error or even ending up with an empty account
  • Ending up with overdrawing your account because of the lack of enough funds in checking
  • Forgetting what you’re paying for in case you don’t see the bills come through, and continue paying for services no longer used.

As you see, ACH debit is like ACH credit: only there’s one striking difference. ACH credit removes funds from the originator’s account, but with ACH debit, the funds are “pulled” in a debit transaction.

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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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