Reduce Payment Processing Costs By 80% Or More! C2003 by Wayne Akey How would you like to reduce payment processing costs by 80% or more and at the same time open up a new payment mechanism to customers? If so you need ACH processing. ACH stands for Automated Clearing House and essentially refers to the regulated network used for transferring monies to and from checking and savings accounts. Most people pay a bill or make automatic contributions to investment plans using this payment method. You may also see ASH referred to as EFT or direct debit. You would use ACH processing in accepting a check by phone or fax or via your Internet site. You need the customer's account and bank routing numbers. Recurring payments can also be taken very simply. Their are several major differences between credit card transaction processing and ACH. A credit card transaction always involves a transaction fee and a discount rate. An example would be 2.39% plus .30 per transaction. For a $100 sale the merchant pays $2.39 (2.39% of $100) plus the .30 per transaction for a total of $2.69. Using ACH processing you can eliminate the discount rate in the majority of transactions (high risk business may have discount rates imposed). Depending on your average ticket size the savings are substantial. On the $100 average transaction you save close to 90% of your transaction costs. Even with low volume businesses the savings are significant. While the ACH transaction saves substantially on costs the credit card transaction does offer immediate payment capture. That is a "hold" is placed on the customer's credit card funds. ACH payment processing does not currently "hold" or instantly transfer funds. The transaction is assumed good (the customer has the funds in their account) but they could be NSF (bounced check). Typically your reporting informs you of returned (dishonored) transactions in 24-48 hours. Most ACH processors have automated recovery methods if collection is needed. ACH processing is typically accomplished using PC software, an Internet "Virtual Terminal" or by uploading files or integrating a solution into a legacy app or Internet site. It is usually fairly easy to obtain ACH processing. Make sure the processing company you choose to work with is reputable and reliable. You can save time and substantial money while offering new payment vehicles for your customers. ============================================================ Wayne Akey has helped numerous businesses reduce costs and increase efficiency. Get the Free Report "Save 80% on Payment Processing" mailto:achbook@royal-responder.com wakey@acheftproviders.com ============================================================