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How To Make ACH Payments For Free

Oct 20

Free ACH Payment Processing: Payments that are both free and secure for you and your customers
The Automated Clearing House (ACH) has a number of advantages over conventional payment methods. Its main benefit is its low transaction rate. Finding ways to make it free, on the other hand, is achievable and even preferable.

This article explains how to send and receive payments using ACH without incurring any fees.


Is it Possible to Make ACH Payments for Free?

ACH debit transfers are free for payroll direct deposits and most bill payments. Although many banks offer free external funds transfers, banks may levy a fee of around $3 for moving money from accounts to another bank via ACH credit transfers.


Let's take a closer look at ACH debit and ACH credit transactions.


What is an ACH Payment / ACH Transfer?

An ACH transfer is an electronic payment network that employs the Automated Clearing House system, which is a nationwide network of banks and financial institutions in the United States. It supports business-to-person, person-to-person, business to business, and any combination of person and business payments as well as bank-to-bank direct payments. Most alternative electronic payment options, such as wire transfers and card-based transactions, are more expensive.


ACH allows you to make several transactions with a single client at a set frequency. You may save a lot of money on credit card payments if you have a lot of cash flow on a regular basis. It's a common method of monthly paying since it provides a simple billing procedure, regular payment, and fewer billing problems.


Most bank accounts may be used for ACH, including:


  • Accounts for cash management
  • Accounts for investments
  • Accounts in the money market
  • Methods for "ACH Payment Processing" that are right for your business
  • ACH debit transactions and ACH credit transactions are the two types of transactions. Let's have a look at both of them.


What is an ACH Debit Transaction, and how does it work?

An ACH debit is a transaction that takes money from a payer's bank account. ACH credits are debits that are automatically deducted from a customer's account.


The payer is not charged for ACH debits. Pulling funds entails a cost for the payee in most cases, but not always. If the cost is covered by bank account fees, you may be able to avoid bank costs. If you are charged, look for a reduced processing cost through banks or third-party processors. It's worth mentioning that third-party suppliers are notorious for burying fees in contracts, so seek for clear pricing.


What is the difference between an ACH credit transaction and a direct deposit?

An ACH credit transfers funds from the payer to the payee without the need for the consumer to do any labor. In most situations, the payer is charged a fee for transferring funds. Similarly, you will be charged if you send money to your merchants.


Charges aren't usually the norm, though. Direct deposits, a type of ACH credit, don't happen very often. Banks may charge a fee of around $3 for bank deposits in other instances, although many make these transactions for free.


Verification of eChecks: A Time- and Money-Saving Feature

Electronic checks (eChecks) are a type of ACH credit that has its own set of benefits. You don't need to sign up for ACH services to make online bill payments; in fact, you don't even need a check to take use of ACH capabilities. Some businesses provide eCheck payment as an add-on option for online payments over a secure connection or during the checkout process. They simply need your bank login credentials.


Check verification skills are also available to you as a business owner. EChecks allow you to verify your money instantly without having to pay an ACH charge.


ACH Fees are charged by which banks and payment processing services?

Some banks levy fees, while others do not. Investigate the banks you're considering. An ACH debit is more likely to be free than an ACH credit for those who charge. You won't see a separate charge since many banks absorb the ACH cost by putting it in a normal bank fee.


Because there is no underlying bank account fee to absorb the expense, most third-party payment processing providers charge payers for ACH credits and payees for ACH debits.


What are ACH Bounce Charges and How Do I Avoid Them? Keeping the Costs of Insufficient Funds to a Minimum

During bank transfers, both payers and payees are penalized for insufficient funds or inaccurate bank information. To assure frequent clearance of money, it's preferable to provide ACH to dependable clients. To avoid bounce costs, make sure you input the right bank information during setup. If the problems persist, you may be charged a termination fee.


ACH Payment Processing Software from Your Merchant Services Provider Can Help You Get Paid Faster

BNG Payments, as a merchant services provider, offers ACH payment processing software that integrates with your accounting software to function as an all-in-one cash register.

BNG also sells payment processing equipment. We manage all in-store and remote ACH payables and receivables as an all-in-one merchant services firm. We even provide third-party processing services with a fixed-rate price structure.


Payment processing has never been easier than with BNG Payments. We make it simple for retailers to take credit and debit cards, mobile payments, e-commerce, and more, regardless of their processing needs.


To learn more about what BNG Payments can accomplish for your business, please contact us.


BNG Payments

3285 47th St S, Fargo, ND 58104