Accepting Online Payments for Small Businesses
What Is ‘ACH‘ And How Is It Associated To An Online Merchant Account. An online merchant account processes payments for a business with an internet presence that can accept payments electronically. If any company has an online merchant account they will require to have an established payment system that will process various credit or debit card payments as well as online bank transfers.
This is a typical account that accepts the payment from the customer and passes it on to the merchant’s bank account. This system is referred to as an “Automated Clearing House”.
An ACH is an institution that facilitates or assists in the transfer of funds from one financial institution to another. For example, if you send a check from another bank to bank for payment, the check will go to the Clearing Bank in the area.
This intermediary body will authorize the payment that will be moved to your savings account. It cuts out the hassle of you having to go to the bank whose check you need to get your cash.
Similarly, an ACH assists online merchant accounts to receive payments from any payment processing services such as VISA or MasterCard, even different online banks.
An ACH serves as the link in between his bank and the online merchant savings account, to assist in the transfer of funds. Whenever a client authorizes payment through an online process, such as a credit card or any electronic means, the ACH guarantees that the payment is validated and that the merchant will receive the payment in due course.
Many online merchants have actually chosen to utilize complimentary online payment processors to cut on costs of establishing their own payment gateways. The process is complimentary, the payment transactions still have to go through the ACH in order for the merchant to receive his payment.
This is an extremely secure way of paying online and is catching on really quick. In fact, accepting payments online is as simple as accepting money over-the-counter, only by doing this the merchant does not have to go to the bank to transfer the money, ACH does it electronically.
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