According to NACHA – The Electronic Payments Association, billers prefer ACH payments rather than credit card payments. Specifically, they prefer recurring ACH payments. As a business owner, you’ve probably considered ways to set up recurring payments for customers. Here are a few advantages of recurring ACH payments for businesses.
1. Even Greater Cost Reductions
When you enable recurring ACH payments, you don't have to invest as many man-hours processing daily, weekly or monthly invoices. You and your customers set up recurring payments once, and then it’s hands-off. Less labor time means lower costs and more time spent growing your business.
2. Fewer Missed Payments
With ACH recurring billing, you reduce the risk of missed payments. You no longer have to worry about customers remembering to send a check or log-on to make a payment online. All future payments happen automatically without any intervention required.
3. Higher Customer Retention Rates
Every time a customer opens a paper or electronic invoice is another opportunity for them to cancel your service. In months where money is tight, the arrival of a bill in the mail might cause them to reassess the value of your service. However, because ACH recurring billing happens 100 percent on autopilot, customers must consciously intervene if they ever want to cancel future payments.
4. Greater Customer Satisfaction
ACH payments not only benefit businesses — they also benefit consumers. They offer the same speed and flexibility you normally associate with traditional credit card processing. When you enable recurring billing, customers have one less thing to worry about.
Anything you can do to make your clients’ lives easier will ultimately make your business more profitable in the long run. Customer satisfaction is a critical component of sustainable business growth.
5. Even More Enhanced Security
Without recurring billing, customers must upload credit card information, write a check, or click a button every time they want to make a payment. Each of these "touch points" exposes users to potential hacking and phishing.
But with recurring billing, all transactions happen behind the scenes, making it harder for scammers to get their hands on sensitive financial data. ACH payments are already quite secure, but recurring billing makes them even more so.
Need Help Enabling Recurring ACH Payments?
Fewer costs, higher profits and happier customers. Recurring billing offers a host of compelling benefits for businesses of all shapes and sizes.
If you'd like to enable recurring billing within your ACH payment network, use the free resources below:
- Click here to learn more about recurring ACH payments.
- To speak with our customer support staff, email us today.