Automated Clearing House (ACH) payments are electronic payments made through the ACH network, an electronic network that processes a variety of transactions occurring in the United States, some of the most common being: payroll deposits, mortgage bills, utility bills, insurance bills, B2B ( business to business) payments and e-commerce payments. For businesses, online ACH payment has several advantages over paying by check, money order, or phone, including:

1. Timely payments

If you leave payments by email or phone, many customers will delay, which translates into your business losing money that could be in their accounts, which could translate into a lower investment rating. While late payments may not put your company out of business, they will complicate its current finances.

2. Fewer late fees

While some entities profit handsomely from late fees, they can cause other entities to lose money in the form of lost customers. While consumers always pay late fees to entities whose services are essential, such as banks and Online payment gateways insurance companies, they often default when faced with late fees for services that are more expendable. ACH benefits customer retention by helping to prevent late fees.

3. Faster access to funds

ACH payments take less time to process than standard debit and credit payments, roughly 1-2 days compared to 2-3 weeks. Posting payments to a company's account sooner rather than later allows it to realize more financial flexibility now, especially if the majority of its revenue comes from ACH pay.