High Risk ACH Processing Benefits for Merchants

Payment processing is all about options, reliability, and ease. Consumers like to be able to make payments and purchases in the way they most prefer and businesses and merchants want to be able to accept those payments. Because of this, most merchants and businesses are expanding their payment processing options. While cash, checks, and cards are popular methods, another type of payment option is electronic payment via Automated Clearing House (ACH). The benefits of high risk ach processing can be very appealing particularly for high-risk merchants who are looking to offer new ways to customers to conveniently and easily cover purchases or bills.

Following are the key benefits of high risk ach processing for merchants:

Cost Effective

Accepting ACH payments is generally more cost-effective as compared to accepting cards or checks. Checks may incur relatively lower upfront charges and fees, but there are other costs involved, e.g. buying check stock, reconciling a check, writing it, mailing it, etc. There are other benefits to accepting debit and credit cards, but you pay a percentage of the transaction amount. For instance, credit card payments may cost you 2.5% for each $100 processed. That amount quickly adds up.

Faster Processing

For high risk merchants, the primary benefit of ACH processing is speed. When a customer writes a check, the business owner may have to wait days for it to arrive in the mail. Then, the check must be deposited and processed. And then the merchant has to wait for the check to clear. ACH processing can drastically reduce the amount of time dedicated to payment processing.

The NACHA Operating Rules usually allow for ACH transactions to settle within 24-48 hours and debits to settle on the next business day. The faster ACH processing time means your payees and your business both have faster access to cash as well as improved efficiency in tracking incoming payments.


Another key benefit of ACH processing for high risk merchants is that it is maintained by NACHA and regulated by the federal government. Having the backing of NACHA and the government means that this is one of the most secure payment methods available. So, your customers can rest easy knowing that when they make a payment, it’s will be processed by a very secure system that requires multi-level authentication and encrypts their data.

Reliability and Accuracy

People make mistakes. Sometimes, people could input the wrong numbers when entering data into a spreadsheet or database. Other times, people could miss an envelope because it fell down somewhere. No matter the case, such mistakes can cause serious problems for consumers and the businesses that serve them. Since ACH payment processing is digital, the number of errors is minimal. Fewer errors also means that the merchant can spend more time on other important tasks instead of figuring out issues and working to resolve them.

Setup Payments Once

Recurring billing setup is super easy with ACH processing as there is no need to keep doing the same thing each month. If the billing schedule is authorized by the customer, the payment processing program can easily utilize the automatic invoicing. Everything is automated to save you time – invoicing, payment, tracking, etc. is done for you.

Preferred Funding

For businesses and merchants, time equals money. Priority in payment processing means shorter wait times, giving your business an edge over competitors. Banks may have different policies on electronic ACH transactions and paper checks, but typically electronic payments are processed first, hence saving you both time and money.


Customers who don’t have a credit or debit card or would prefer not to use one to make payments will surely appreciate having ACH as an alternate payment method. The ability to integrate ACH payment processing into your accounting or bookkeeping program presents the opportunity to automate the posting of your receivables. Furthermore, the ability to schedule automated payments to suppliers and vendors leaves you with more time to focus on other important aspects of your business.

Fewer Failed Payments

As ACH transactions initiate from a bank account rather than a debit or credit card, the likelihood of failed payments is much lower. The bank account of your customer as well as the routing number will likely remain the same for years. With ACH processing, customers don’t usually have to worry about credit limits or blocked, canceled, or expired account numbers.

Improved Cash Flow

If you make it more convenient for your customers to pay, they are more likely to make their payments. It is an added convenience that also makes it more likely that your customers will make their payments on time as ACH processing is not a hassle for anyone. High risk ACH processing simplifies the process of people making payments. Because of this, your revenue stream is both more consistent and more reliable as people can pay easily.

Improved Customer Relations

An improvement in the relationship between a merchant and its customers is one of the top benefits of ACH processing that is often overlooked. As consumers won’t have to worry about paying bills on time, thanks to recurring ACH payments, it will remove some tension from the interactions between your customers and your business. Furthermore, if you reach out to customers about missed or late payments, it can sometimes lead to negative interactions with them. ACH payment processing eliminates such potential problems.

Greener For Our Environment

Businesses and consumers are today more environmentally conscious than ever before, which is more reason to go green with ACH processing. Since the transactions are entirely digital, ACH payments eliminate the need for paper envelopes, checks, invoices, stamps, etc., not to mention the planes or trucks needed to transport the mail. All of these come at a grave cost to the environment. With ACH payment processing, there is no paper required. Hence, ACH provides a greener alternative that is also kinder to your wallet.

High risk businesses and merchants are always eager to find new ways to improve efficiency and offer convenient, secure, and simple payment solutions for their consumers. With the right banking partner, high risk ACH processing could be a perfect way to make the lives of your customers easier, while saving you time and money.