There is no denying the fact that technology is changing the way we do business in the 21st century. Where it was once a novelty to make online transactions, it is now the norm. Fewer people are paying bills, shopping and even banking, in person. In fact, can you remember the last time you stepped foot inside the local branch of your bank? Probably not.
We are now doing everything, often even working, from home and that’s the way we like it. Our paychecks are direct deposited and from there we set up automatic payments for everything from utilities to automobile payments. Even our mortgage is automatically deducted from our bank accounts. It’s the world of ACH, Automatic Clearing House, payments.
Consider for a moment a business that contracts services like Yodlee ACH payments. The speed at which transactions can be made is of prime importance. Consider the amount of time saved in payroll management alone. It is no longer necessary to manually hand out paychecks if the employee has it set up for automatic deposit to their bank.
However, that’s just one way in which a business can benefit from the speed of Yodlee ACH payments. They can also have all their recurring business expenses direct debited from their business accounts as well as receiving payments from customers. Accepting autopay transactions only involves getting the customer’s checking account and personal information. From there, the customer authorizes ACH payments and that’s it! When it comes time to collect recurring payments, technology does the rest. Everything is automatic and in the background. What could be faster than that? If you had to wait for snail mail to deliver this month’s payment in the mail, you might still be waiting!
Then there’s convenience for everyone all the way around, especially for a company’s Accounts Receivable department along with HR/Payroll. How convenient is it to set up a recurring direct debit that works seamlessly in the background? Once a payment plan is established, automation takes over. Every month on a prearranged day, the customer’s account will be debited with an amount also prespecified. Employees will receive their pay directly into their checking accounts and it’s just convenient for everyone involved, employees and customers alike.
3. Cost Effective Solutions
As mentioned, once payroll is set up for direct deposit into an employees’ checking accounts, countless hours in manpower hours are saved. The same holds true with direct debits from customers’ accounts. The sheer number of manpower hours and a reduction in labor costs alone make ACH payments well worth the cost. There is no more cost-effective way to pay bills or receive payments than in ACH transactions.
They say that time is money, so everything about ACH payments reflects just how fast and cost-effective the process can be. As for convenience, there is nothing more convenient than sitting back and letting technology conduct all those processes running smoothly in the background. If your business hasn’t yet explored the benefits of ACH payments, it’s probably time to do just that, or be left in the wake of the very technology that is spurring business growth.