Every industry can benefit from offering ACH payment processing for one giant, colossal reason: When a customer or merchant is unable to complete a credit card transaction, payment by check is always a viable, secure solution.
ACH, short for Automated Clearing House, is an electronic payment solution which enables merchants to deduct funds directly from customer bank accounts. ACH transactions save time and money because, unlike credit card transactions, there are no interchange fees involved. Additionally, the customer and merchant do not exchange any documents or check numbers.
The inner workings of an ACH merchant account transfer may appear complicated, but it is simply the process of debiting money from the customer bank account into a merchant account. Same-day ACH processing will streamline this process even more.
Virtual Check allows merchants to enter their customer’s bank account information into a checkout page, virtual terminal, Web API or a batch upload to collect funds. Once transactions are submitted, they will be verified to make sure the consumer bank accounts are valid. If the check does not get declined through the authentication process, the checks are turned into a remotely created check (RCC) and then printed out into a demand draft. The processor will then take the demand draft(s) to the merchant’s bank account for deposit.