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Updated August 29, 2023

How Your Business Can Benefit from ACH Payments

Is your business still handling paper transactions—i.e., processing, printing, mailing, and tracking invoices and checks? There are few functions businesses perform that are more costly or inefficient, not to mention the delays, errors, and risks associated with sending and receiving paper checks. It’s a lot for businesses to contend with to keep cash flowing in and out of the business.

In the digital age, when money can be moved automatically and near instantaneously, there’s no reason why businesses must be burdened with such routine machinations. Today, all businesses, large and small, can have access to electronic funds transfers through the Automated Clearing House (ACH) offered by their business bank.

What Exactly is ACH?

The ACH is an expansive digital network linking financial institutions worldwide, creating a common platform for transferring funds between banks, businesses, and their customers. ACH users can access the network to send or request funds on demand, typically with a one- or two-day settlement.

Businesses accessing ACH to pay a supplier make a payment request to the ACH system through their banks. The bank then debits the amount to be paid from the business’s checking account and transmits the payment through the ACH network to the supplier’s bank account. The bank notifies the supplier that funds have been transferred and credits its bank account, where funds are typically available within one or two business days.

The Benefits of ACH for Businesses

Lower costs: Processing payments through ACH eliminates the need to prepare, print, mail, and track paper checks, which can significantly lower transaction costs.

Efficiency and convenience: ACH payments can streamline the payment process by eliminating the need for manual tasks such as printing, signing, and mailing checks. Payments can be set up to occur automatically, reducing the administrative burden and ensuring timely payments.

Enhances security: ACH payments are highly secure, utilizing encryption and authentication protocols to protect sensitive information. By eliminating physical checks and the associated risks of fraud or loss, ACH payments offer a more secure payment option.

Faster processing: ACH payments are not as immediate as wire transfers, but they are generally quicker than paper-based methods. ACH transactions can be settled within one to two business days.

Improved cash-flow management: ACH payments enable businesses to better manage their cash flow by scheduling payments in advance or setting up recurring payments. This can help improve cash flow and optimize cash on hand.

Automated accounting: With ACH, transactions are systematically recorded, compiled, reported, and downloaded to your business’s accounting program.

Enhance customer satisfaction and loyalty: Many individuals and businesses prefer the convenience of electronic payments and are more likely to choose businesses that offer them over those that rely on traditional methods.

It’s Easy to Set Up an ACH Account

Community Bank is well-equipped to provide ACH along with a wide array of treasury management solutionstools that can be tailored to your business’s needs and budget. Our business banking representatives can help you determine your transaction needs, including payables, receivables, and payroll, to help you set up your ACH account to start saving time and money.

Explore our Financial Literacy Hub and our blog for content that helps you make money decisions confidently.


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