ACH Solutions....

With Globility Link High Risk ACH, merchants now have an effective method to capture more orders from buyers who do not have cards, have maxed out cards, or simply prefer to pay using a bank account rather than a card. Merchants that add electronic checks at checkout, experience sales lifts of up to 20% and save up to 70% on expenses compared to card payment processing.

 

Accepting payments from a customer's bank account stabilizes cash flow for merchants with recurring billing models. Consumers rarely change bank accounts, which creates a steady revenue stream with little need for customer service.

 

Compare this to card payments, where 25% of cards are reissued every year, causing disruptions in cash flow. And increasing the need to have customer service constantly updating payment information.

 

Recurring payments are a standard feature of all high risk ACH processing accounts. This is perfect for merchants that bill on a regular basis for services or for subscriptions and memberships.

Quick Facts...

  • The ACH Network is a batch processing system in which financial institutions accumulate ACH transactions throughout the day for later batch processing.

  • Instead of using paper to carry necessary transaction information, such as with checks, ACH Network transactions are transmitted electronically, allowing for faster processing times and cost savings.

  • The ACH Network processes two types of transactions: Direct Deposits via ACH and Direct Payments via ACH.

  • Direct Deposit via ACH is the deposit of funds for payroll, employee expense reimbursement, government benefits, tax and other refunds, and annuities and interest payments. It includes any ACH credit payment from a business or government to a consumer.

  • Direct Payment via ACH is the use of funds to make a payment. Individuals or organizations can make a Direct Payment via ACH as either an ACH credit or ACH debit.

    • A Direct Payment processed as an ACH credit pushes funds into an account. An example of this is when a consumer initiates a payment through his/her bank or credit union to pay a bill.

    • A Direct Payment processed as an ACH debit pulls funds from an account.  An example of this is when a consumer establishes a recurring monthly payment for a mortgage or utility bill, and his/her account is debited automatically.  

  • ACH credit and ACH debit transactions process quickly.  Settlement, or the transfer of funds from one financial institution to another to complete the transaction, generally happens next day.

  • Specifically, the NACHA Operating Rules require that ACH credits settle in one to two business days and ACH debits settle on the next business day. Recent enhancements to the NACHA Operating Rules will now enable same day settlement of virtually all ACH transactions.