Sunday, August 30, 2009

Sick and Tired of Paying High Credit Card Fees?

There are a lot of advantages to accepting eChecks or ACH transactions. The most important is cost. You'll save money because there is a simple per transaction fee applied. Unlike credit cards where you have the per transaction, and a percentage of the transaction as a fee.

There are many ways to increase loyalty with the money saved by accepting ACH as compared to credit cards. Some companies pass this savings along to their customers directly by offering a small discount when paying by check. Others use the money to develop frequent buyer programs, etc.

There are other things to note when accepting ACH transactions.

  • Already integrated into most shopping carts.
  • If you can't find a shopping cart, it is easy to develop custom applications.
  • Reduction of administration costs.
  • Clerical account reconciliation costs reduced.
  • Improve relationships with your customers.
  • eChecks eliminate the overhead of processing checks manually.
  • Accelerated availability of funds directly into your account.
  • Elimination of stop payment charges and check reissue costs.
  • Reduced remittance processing costs
  • Reduction of bank service charges.
  • Better cash management forecasting.

Do an audit of your current merchant statement and see how much you could save. If your doing many transactions the savings could be significant.

1 comment:

Anonymous said...

Who decides to increase our interest rates while slashing our credit limits - just so that it artificially seems like we are in massive debt - giving other banks reasons to close cards or raise more rates and the effect rolls on to the next bank and the next bank...?

I hope they all rot in hell.