Improving AR Efficiency with ACH Processing

On:
Tuesday, February 24, 2015

Companies making the push towards electronic payment capabilities are discovering the benefits of ACH processing. In addition to accepting online payments through credit card transactions, enterprises are taking advantage of the Automated Clearing House (ACH) Network, providing safer, simpler options to their customers.

Using ACH processing, customers can schedule and make payments through secure direct debit transfers. With ACH, your enterprise can achieve a simpler, more effective system of payment processing on accounts receivables.

How ACH Processing Improves AR Efficiency

ACH Processing not only delivers a more convenient payment solution for customers, but also results in increased efficiency for your enterprise’s AR department. Here’s how:

  • Faster Processing Times – By receiving payments via ACH processing, AR departments can process and settle payments within 1-2 days. Typically, electronic transactions by credit card can take anywhere from 3-4 days to settle.
  • Lower Risks Associated With Manual Processing – Eliminating manual check processing reduces opportunities for payment processing errors. ACH processing automates invoice presentment and increases the accuracy of invoices and payments.

Key Benefits of Enterprise ACH Processing Technology

The ease and convenience of ACH processing can have a positive impact on companies looking to streamline their electronic payments system. These benefits include:

  • Increased Levels of Security – For customers, ACH processing mitigates the risks of conducting an online transaction. Several layers of verification are implemented, and checks on customer transaction records reduce the risk of payment fraud. In addition, ACH processing allows for notification methods, such as emails or text messages, to alert customers that their payment has been received and processed.
  • More Cost-Efficient Option – There are no transaction or processing fees associated with ACH payments, unlike electronic credit card payments which charge a small percentage for each payment transaction. In addition, ACH payments also reduce paper mailing and processing costs, which can run approximately $13 per invoice.
  • Build Stronger Customer Relationships – Allowing customers to schedule a direct withdrawal from their accounts simplifies the payment process. ACH processing eases bill payment for consumers, while at the same time shortening the payment cycle. By streamlining the payment process and operating on a single, user-friendly platform, companies can experience an increase in customer satisfaction, ultimately resulting in an increase in customer retention.
  • Improve Cash Flow – ACH processing increases the likelihood for your enterprise to improve cash flow and working capital by allowing you to receive payments faster. In addition, adopting ACH processing can help to improve Days Sales Outstanding (DSO) rates by 80 percent.

Ready To Make The Move Toward ACH Processing?

For companies transitioning to an electronic payments system, Direct Insite’s PAYBOX® Payments solution is an industry leading automation system that supports payments through the ACH Network, allowing customers to schedule and pay one—or multiple—invoices in a secure and efficient fashion.

In addition to supporting ACH processing, PAYBOX® also works to improve companies’ cash flow management and eliminate inefficiencies, resulting in a streamlined electronic invoicing and payment system.

When your company is ready to take the next step in electronic capabilities and utilize ACH processing, call us at (610)-212-2487 or email us at sales@directinsite.com for a private demo of the PAYBOX® Payments solution.

 

 

 

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