ACH payment online: the benefits and disadvantages

ACH payment online: the benefits and disadvantages

automated clearing house (ACH) payments are electronic payments through Labor Organization Network Against Hunger, an electronic network to handle a variety of transactions occur in the United States States, with some of the most common ones are: deposits, payroll, bills and mortgage, utility bills, insurance bills, B2B (business to business) payments, e-payments. For businesses, ACH pay online has many advantages imbursement by check or money order, or telephone, and in particular:

(1). Timely payments

If you leave the mail or phone in payments, and many customers procrastinate, which translates into your business missing out on money that can be in their accounts, which may lead to a decline in the proportion of investment. While the delay in payment has not put out of business the company, and they do not make the current financial resources more complicated.

(2). Late fees less

while some fabulous entities from late fees profits, they can cause other entities to lose money in the form of loss of customers . While consumers always pay late fees on entities that essential services, such as banks, insurance companies, they often become non-payers when faced with late fees for services that are more dispensable. ACH benefit customer retention by helping to prevent late fees.

(3). Faster access to funds

imbursements ACH take less processing time than the standard debit and credit imbursements, approximately 1-2 days versus 2.3 weeks, respectively. Publish imbursements to calculate the company sooner rather than later allows them to achieve greater financial flexibility at the present time, especially if most of his income comes from ACH pay.

(4). Less ESC

with the traditional methods of imbursement out many of the expenses that ACH removes wage, such as: paper, mail, telephone and the staff of a large-scale. Automatic payments can also reduce the expense of the group's work, whether in-house or through outsourcing, they also make it difficult for late fees and missed payments to be realized.

defects

drawbacks of ACH wages are not flaws as far as the possibilities that should be addressed in order to benefit from this arrangement, such as:

(1). Data is stored off-site

can be found at

storing office data cheaply through software as a service (r), which specializes in data security, storage, or commercial services that offer the same service providers. Remember wage data away from stored in encrypted form to be preserved from fire, flood, or theft devices.

(2). Fraud

like all systems that use financial information is stored, the system ACH is the target for fraud, both internally and externally, with statistics showing the former poses the greatest risk in terms of data theft. Fraudulent activity can be greatly decreased by the presence of firewalls that protect against malicious activity internally and externally, and also by engaging in smart personnel practices, such as the following four:

(1). Using permanent staff and not for a temporary certain functions

(2). The separation of the important duties as much as possible

(3). Intensify the examination of certain positions procedures, and

(4). Reset passwords for sensitive accounts on regularly

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