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ACH For Payday Loan Merchants

Leading providers of technology-enabled payment processing services regularly deliver information on modern payment technologies. These companies’ blogs feature articles about ACH processing where you can find answers to your questions and valuable recommendations concerning your business.

What Is ACH Processing?

Automated Clearing House (ACH) is a nationwide electronic network. It enables businesses to send and receive financial payments. ACH is under the regulation of the Federal Reserve. It is operated by the Electronic Payments Network and the National Automated Clearing House Association (NACHA).

ACH aims to allow merchants throughout the country to perform batch processing on large volumes of credit, debit, and other business transactions. These include direct deposit payroll, customer insurance payments, mortgage loan repayments, vendor and supplier payments, and more. This results in lower processing fees. Also, ACH helps keep the use of paper to a minimum.

Accepting ACH payments can be compared to credit cards. Only, in the former case, bank-routing codes are used instead of traditional 16-digit credit card numbers.

ACH Loans for Your Business

Business owners’ goal is to find convenient, easy-to-use and time-saving methods to process customer payments. Having established electronic payment options for their customers through debit and credit card payments, business owners should also consider accepting ACH payments.

Companies choose the ACH network both for bill payments, direct deposits, and eChecks. The ACH network, like all payment technologies, is associated with certain fraud risks. However, thanks to several important features, ACH provides security and protection to users.

Merchants interested in ACH payment processing should consider turning to EMB, # 1 high-risk payment processor in the US, offers ACH for payday loan merchants. EMB delivers an Automated Clearing House (ACH) to high-risk credit card holders and Check Clearing for the 21st Century (Check 21) for check writers.

On ACH Payments

Consumers pay almost 500 million bills using the Automated Clearing House network each month. In 2013, $38.7 trillion were transferred by businesses and customers across 22 billion separate ACH transactions.

ACH payments are on the rise. Statistics shows check payments at the point of purchase decreased 12% in the first quarter of 2014. eCheck and mobile ACH payments increased 10% in the first quarter of 2014.

In the US, the federal government will no longer provide Social Security payments through the postal system. The UK has already started bringing paper checks to an end.

Thanks to reliability, speed, and convenience, ACH payments have become the ideal choice for many merchants and customers all over the world.