What is ACH?
Automated Clearing House (ACH for short) is a central clearing house that lets you deduct money directly from your customer's bank account.
Why should I use ACH for business?
Low transaction fees
ACH is the most cost-effective alternative to checks and credit cards. Transaction fees as low as $0.25 help you maintain a great bottom line.
Easy billing, preferred by businesses
ACH is one of the most preferred modes of payment by business as it does not involve pesky payment reminders. ACH will automatically collect payments on your behalf, at a fraction of the cost of other methods. In fact, it is expected to surpass checks and cards by 2020, according to research conducted by the Credit Research Foundation.
Reduced churn due to failed payments
ACH eliminates the hassle of overcharged cards and check failures. Because you're deducting cash directly from your customers' bank account, they are less likely to experience a payment failure, and therefore less likely to cancel your service.
Convenient and secure
Lay your customers' security concerns to rest. ACH employs a two-way micro-validation that verifies the authenticity of both parties.
How do I process ACH payments in Zoho Subscriptions?
Enable ACH for your customers
Since ACH payment involves directly debiting your customer's bank account, you must enable it only for customers. It takes around 3-4 days for the money to come around, therefore, you must enable it only for customers you trust, to avoid payment failure due to insufficient funds.
Collect payment information from customers
To accept payments via ACH, you need the customer's account number routing number. If you already know this information, you can manually enter the details. Otherwise, you can request it from your customers via Zoho Subscriptions at the same time as you collect their formal agreement to ACH payment processing. To automate the process further, you can use our APIs to redirect the customers to a hosted page where they enter their payment info while they are subscribing to your product.