Automated Clearing House (ACH) payments are cost-effective, quickly processed, and improves cash flow. This method transfers money from one bank account to another without using physical checks, cash, or credit cards. While commonly used for recurring transactions, but don’t rule it out for one-time payments.
Businesses should begin taking advantage of this electronic payment method if they haven’t already. But, the most formidable challenge for merchants is changing their customer’s payment behavior. Usually, the customer decides how to pay since merchants don’t want to inconvenience them. But, you can influence customer payment behavior without causing any ill effects. Read on to learn some ways merchants can motivate clients to pay via ACH.
Inform Customers of Pay via ACH Benefits
ACH payments benefit both customers and merchants. Some perks customers can enjoy by paying via ACH include:
- Never forget a missed payments. ACH payments can be set up on an automatic, recurring basis.
- Any ACH payment – whether one-time or recurring – receives a customer notification indicating a debit to their bank account is about to take place.
- Set up ACH payments only once. As bank account details do not expire like card payments, a customer will never have to worry about updating payment details.
Offer Incentives to Pay via ACH
Some businesses offer incentives to encourage customers to pay using ACH. While it may seem like an odd strategy – not spending time and money chasing late payments is worth the risk. A standard incentive merchants use is to discount the product or service total for those willing to pay via ACH. Additionally, one can try offering a charitable donation on the client’s behalf when paying via ACH.
Don’t Relent on Customer Service
Many customers want to pay using ACH; it’s convenient and takes the hassle to write a paper check monthly. While ACH payments can be accepted via various avenues, such as web payments, MOTO, or IVR – don’t forget to excel in the customer service department should a question arise on the payment method. Also, teach your support team to spot and leverage “teachable moments” quickly. For example, when a customer calls your billing department about a late payment, it’s a perfect opportunity to let them know how the issue can be avoided by paying via ACH.
All businesses should encourage customers to use ACH when making payments. The cost per transaction is minuscule compared to taking a credit or debit card payment. If you are interested in learning more about this secure and easy-to-board payment method, reach out to Payment Savvy. Our knowledgeable team is happy to discuss your options and create the perfect custom payment solution for your business.