As a follow up to the first part of the Automated Clearing House service, this discussion will identify more benefits as well as the best candidates for its use. ACH not only verifies availability of funds, but it does so in a timely manner and then some. Any business that is check or invoice driven will find ACH a fit. The legal industry benefits greatly from this service, particularly attorneys that work on retainer. Rather than invoicing, a mutual agreement can be set up between attorney and client allowing replenishment of fees one time, or on a recurring date. The funds are verified and money is transferred.
Suppliers, Vendors, and Manufacturers will also benefit greatly. In recent discussions, I discussed how accepting Visa/MasterCard is suitable in some cases for these industries. However, due to the large dollar amounts associated for these businesses, check is the only form of payment acceptable. Merchants will receive confirmation of the transaction when it is completed, and can expect payment within 7-14 days in most instances. ACH’s benefits include: improved cash flow management, reduction of administrative fees, reduction of bank processing fees, and expansion of customer base. ACH is convenient and easily accessible by web or phone.
Todd Rome
Director, BankCard Services
Southern Lending Solutions, LLC
