With regards to the National Automated Clearing House Association (NACHA), collection organizations prefer recurring ACH payments from their accounts. As a financial institution, you have most likely considered setting up recurring payments for your customers.
Below are four key advantages of recurring ACH payments for businesses.
Using recurring ACH billing, you decrease the risk of overlooked payments. You are no longer required to have to think about the customer forgetting to mail a check or log into their account to make payments online. All upcoming payments occur automatically and do not require any human interaction.
Here is why this is great: every time a consumer opens a paper or electronic statement from you they make a choice about paying you. In months when money is on a budget, they may choose to not pay it, or pay it late. Since recurring ACH billing occurs entirely on autopilot, consumers must deliberately interpose if they want to cancel future payments.
Improved Customer Contentment
Recurring ACH payments not only profit your industry, they also assist your clients. Once you facilitate recurring billing those customers have one less obligation to think about. This is particularly useful when they are in a collection condition. Programmed payment of the bills by the payable date looks great on their documents.
If your company is a credit union, whatever you can do to make your customers’ lives more relaxed will make your company more lucrative in the long run. Customer contentment is animportant factor in brand-building and continued company growth. Recurring ACH payments will guarantee their loans are paid back and their credit record keep looking great.
Incase recurring ACH billing is not being used, consumers must upload credit card data, write a check, or input a PIN every time they want to make a payment. Each of these procedures discloses the users to possible theft, hacking and/or “phishing” for their financial data.
With recurring ACH billing all transactions occur routinely and within the system. This makes it much more challenging for scammers and computer hackers to find delicate financial data. One-time ACH payments are extremely safe and recurring ACH billing makes them even more so.
Substantial Cost Cutbacks
ACH payment processing usually has the lowest cost associated out of any payment system. A credit card’s fee is usually around 2.5% of the price of the transaction with an added processing fee. ACH payments usually cost a couple of cents. As the quantity of transactions increases the cost savings with ACH payment processing can add up rapidly.
When you facilitate recurring ACH payments, you are no longer required to invest as much processing time daily, weekly or monthly. Once you set up the recurring payments they will then occur automatically. Minimizing labor time means lower costs and more time to capitalize on important tasks.
You should take the time to suggest to your customers who make regular payments to consider a recurring automatic payment plan. Both your customers and your company will reap significant benefits. To begin, get in-touch with a ACH payment processor for more information.