The banking industry has reached its heights with various national and international banks competing with each other. The competition is quite severe that people sometimes get confused about which one to use for his or her personal and business needs. This competition has become so intense after the arrival of Islamic Banks, which are getting growth each year. Banks offer various types of services to its individual and corporate customers and in providing these services earn a lot of charges, interest, and penalties. These account for a major income in the bank’s financial statements. In the banking industry, the term ACH is quite famous.
ACH stands for Automated Clearing House and is the electronic method of transferring funds from one account to another via the Automated Clearing House Network. Most of the companies are utilizing this technology like Value Click Media, Google AdSense and CIMA (Chartered Institute of Management Accountants).
ACH is used for:
Customer Direct Deposit – ACH lets you deposit repetitive payments in the Payees account directly and saves a lot of time and cost.
Payroll – Employer pays directly into employee accounts.
Consumer Transfer – Consumers move funds from one bank account to another bank account.
Bill Pay –You do not need to pay your monthly bills whether it is a credit card, home loan or utility bill, ACH provides you maximum support to automatically pay all your bills without writing even a single check or pay order.
There are so many advantages of using ACH technology, which are:
Less Paper Work: In ACH, you do not need to write a check and deposit slip to deposit checks. All the work is electronic and paper-free.
Direct Transfer: Funds are transferred directly from one account to another, like from employer account to employee accounts.
Secure Method: ACH gives maximum security of your money as you can easily transfer big amounts without withdrawing cash from the bank and depositing into another bank account.
Cost-Effective: ACH allows cost saving in a variety of ways. Now, there is no need to make a pay order and pay charges thereon, or ordering new checkbooks. Simply transfer the funds electronically via ACH.
Credit Card: Credit Card companies do not want to put their money at risk, so ACH provides them a quick way to get their money back on the due date and thus reduce their risk to a lower level.
Acceptance of Payments: ACH allows acceptance of payments from so many various methods like phone, mobile and website online banking.
Notification: You will be notified of any fund which was rejected and not collected within 24 hours of denial.
Forecasting: ACH enables improved cash management and utilization of modern management accounting techniques such as beyond budgeting.
Time Saver: ACH saves a lot of time by avoiding visits to your bank. It will also save a lot of penalties resulting from the non-payment of bills within due dates.
Customer Relationship: ACH works as an effective tool to increase and boost customer retention and loyalty. You can integrate ACH with your accounting software for direct entries into the ledger and in bank reconciliation for easy reconciling.
ACH is used for:
Customer Direct Deposit – ACH lets you deposit repetitive payments in the Payees account directly and saves a lot of time and cost.
Payroll – Employer pays directly into employee accounts.
Consumer Transfer – Consumers move funds from one bank account to another bank account.
Bill Pay –You do not need to pay your monthly bills whether it is a credit card, home loan or utility bill, ACH provides you maximum support to automatically pay all your bills without writing even a single check or pay order.
There are so many advantages of using ACH technology, which are:
Less Paper Work: In ACH, you do not need to write a check and deposit slip to deposit checks. All the work is electronic and paper-free.
Direct Transfer: Funds are transferred directly from one account to another, like from employer account to employee accounts.
Secure Method: ACH gives maximum security of your money as you can easily transfer big amounts without withdrawing cash from the bank and depositing into another bank account.
Cost-Effective: ACH allows cost saving in a variety of ways. Now, there is no need to make a pay order and pay charges thereon, or ordering new checkbooks. Simply transfer the funds electronically via ACH.
Credit Card: Credit Card companies do not want to put their money at risk, so ACH provides them a quick way to get their money back on the due date and thus reduce their risk to a lower level.
Acceptance of Payments: ACH allows acceptance of payments from so many various methods like phone, mobile and website online banking.
Notification: You will be notified of any fund which was rejected and not collected within 24 hours of denial.
Forecasting: ACH enables improved cash management and utilization of modern management accounting techniques such as beyond budgeting.
Time Saver: ACH saves a lot of time by avoiding visits to your bank. It will also save a lot of penalties resulting from the non-payment of bills within due dates.
Customer Relationship: ACH works as an effective tool to increase and boost customer retention and loyalty. You can integrate ACH with your accounting software for direct entries into the ledger and in bank reconciliation for easy reconciling.
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