Benefits of ACH for Subscription-Based Businesses
Benefits of ACH for ISVs That Support Subscription-Based Businesses
Many software solutions take advantage of ACH transactions to enable customers to make deposits and receive money automatically. In 2016, the ACH network processed approximately 6.1 billion direct deposits and over 25 billion electronic payments. ACH technology can also provide significant advantages for ISVs developing SaaS solutions for clients:
- Increased payment options: To provide maximum payment flexibility to their customers, businesses need to accept a variety of payment methods. A complete software solution should include credit card, debit card and ACH direct deposit options.
- Two-step verification security: ACH transactions can offer increased security for account holders and businesses. Before authorizing payment, the ACH system requires customer verification for the account. Of course, once a recurring subscription has been authenticated, debits can be made smoothly every month.
- Fewer failed payments: Since ACH transactions originate from a bank account instead of a credit card, the chance of failed payments is lower. With ACH, customers don’t generally have to worry about credit limits or expired, canceled, blocked or incorrect account numbers.
- Faster deposits: Switching from paper checks to ACH is a major upgrade for clients with subscription services. These automatic electronic payments ensure fast deposits into the originating bank account. Funds are deposited the next business day or even on the same day.
- Simplified payment processing: An ACH-based recurring-payment system streamlines accounts receivable for your customers. Depending on the subscription options provided, virtually all payments can be handled automatically. This is a major selling point for SaaS business solutions.
There’s no doubt that this next-gen technology is growing in scale and features. At Paragon Payment Solutions, we can help you add ACH payments to your software with advanced APIs and developer tools. To learn more about recurring payment options and tokenization, contact our experts for assistance.