Whether you are in the process of setting up a new business, or are already running your own business and are considering offering different payment methods to your customers, one of the biggest things to consider is which payment methods customers prefer and why. Credit and debit card payments are a given, and have been for a long time especially for making purchases online. However, they’re not as popular as they used to be, and many customers now favor ACH payment options for many different reasons. Some of the top reasons why customers prefer to pay with an ACH transfer include:
Security
Unlike entering credit or debit card information into a site that you might not be familiar with, ACH payments do offer some more security to customers. There are several options to consider when it comes to real time account verification for ACH transfers. Customers might be more inclined to log into their online banking app through a trusted provider to verify their account, offering real time account verification and allowing the payment to be set up immediately. Alternatively, there are options for customers who might not want to provide access, such as microdeposits. This involves sending small deposits to their account that they then confirm, to verify that the account belongs to them.
Convenience
One of the main reasons why customers today prefer ACH payments is that they are convenient. Unlike sending a paper check through the mail, there are fewer steps involved in the process. For example, a customer can use ACH to make a recurring utility bill payment each month without having to leave the house. There is the option to set it up to pay on the same day each month automatically, so that the customer can simply forget about it. This is far more convenient and much less time-consuming compared to the entire process of writing out a paper check, putting it in an envelope, purchasing a stamp, and going out to send it in the mail. It’s also more convenient than debit or credit cards for some customers, as there’s no need to dig out your card from your wallet and enter the number.
Physical Safety
ACH payments boomed in popularity during the COVID19 pandemic, and for many good reasons. The main one is that this method of payment is contactless. As long as the customer has a suitable device such as a smartphone or laptop that they can use to set the payment up through a platform and in some cases, their online banking app, they don’t have to use a card machine or send a check in the mail, which could pass through hundreds of hands before reaching its destination. While COVID19 safety measures are no longer as strict as they once were, many of the precautions we took during the pandemic are here to stay, and more contactless methods of payment is certainly one of the big ones.
When it comes to choosing the payment methods your business accepts, or considering which methods to add to your current ones, ACH payments are definitely worth considering as they can benefit customers significantly.
