What to know about ACH
As a resale store owner, you always look for ways to make your payment processes more efficient and cost-effective. It may be time to consider transitioning from checks to ACH (Automated Clearing House) payments.
ACH payments for consignors may be just what your consignment store or vendor mall needs. Unlike traditional payment methods, ACH payments offer a more efficient, secure, and cost-effective way to transfer funds between bank accounts. Not only do they eliminate the need for paper checks, but they also provide same-day settlement and lower overall costs. Keep reading to learn more about the benefits of ACH payments.
The benefits of ACH consignor payments
1. ACH payments are preferred by consignors.
Consignors love ACH payments. In fact, they are 3X more likely to choose to consign to a store if that store has the ability to pay them with ACH rather than check or store credit.
2. ACH payments cost less than checks.
Opting for ACH payments over checks can lead to significant cost savings, potentially up to $0.50 per transaction or more. Switching to ACH could put $500 back in your pocket for every 1000 checks you were writing.
3. ACH payments are easier to prepare and execute than paper checks.
ACH payments can be automated and scheduled in advance, reducing manual effort, minimizing errors, and expediting the entire payment cycle. This also means you will no longer have to order physical checks, sign checks manually, stuff envelopes, and buy stamps.
4. ACH payments are more secure than paper checks.
ACH payments offer enhanced security compared to traditional paper checks, as they eliminate the risks associated with physical document handling, such as loss, theft, or unauthorized access. With ACH transactions, sensitive financial information is transmitted electronically in a secure environment, reducing the likelihood of fraud and providing a safer and more reliable payment method for businesses and consumers alike.
5. ACH payments are easier to account for than checks.
Whether you mail your checks or require consignors to come in to pick them up, the accounting for ACH is simpler and more straightforward. With ACH, there is no need for manual reconciliation or reissuing expired or bad checks. Plus you’ll no longer be surprised by account withdrawals due to late check deposits.
6. ACH payments are faster than traditional check payments.
Traditional checks can take several days to clear, while ACH payments are typically available within 1 - 2 business days. Delays can be added if you need time for processing.
See how much ACH could be saving you. Learn more today.
If you’re a SimpleConsign customer on the standard or professional plan, contact support@simpleconsign.com to enable ACH payouts today.
