For businesses looking to reduce payment acceptance costs, encouraging more customers to pay by ACH can make a meaningful difference.
Credit cards offer customers a convenient way to pay, but the cost of accepting them can add up. A business can absorb that expense, reducing the profit on the transaction, or, where permitted, impose a compliant credit card surcharge that increases the customer's cost of paying by card.
ACH provides another option. Guaranteed ACH can cost businesses considerably less to accept than credit cards while providing protection against eligible returned payments. And when a business imposes a credit card surcharge, customers who choose ACH can avoid that additional card-related charge.
That creates a benefit on both sides of the transaction: the business can lower its payment acceptance costs, while the customer has a convenient way to pay directly from a bank account without a credit card surcharge.
But offering ACH doesn't automatically mean customers will use it. Customers tend to choose the payment method that feels familiar, convenient, and easy to complete.
For merchants, increasing ACH adoption means making the option easy to access, understand, and use.
Here are five ways businesses can encourage more customers to pay by ACH.
1. Make Paying by ACH Simple
Convenience influences how customers choose to pay. The easier it is to complete an ACH payment, the more likely customers are to consider it.
Modern bank verification can streamline the experience by allowing customers to select their financial institution and securely connect their bank account rather than manually entering routing and account information.
CrossCheck's Pay-by-Link uses open banking technology powered by Plaid to provide this type of experience. Customers select their bank, connect their account, and authorize the payment through a secure payment link.
For merchants trying to increase ACH adoption, providing a straightforward customer experience is one of the most important places to start.
2. Bring the Payment Request to the Customer
Don't make customers search for a payment portal. Give them a direct path to payment.
With a secure payment link, businesses can send an ACH payment request by text or email. A customer can open the link from a phone, tablet, or computer and complete the payment wherever it's convenient.
This approach can be particularly useful when the customer isn't standing at a checkout counter. A contractor can send a payment request after completing a job. An auto repair shop can send one when a vehicle is ready. A furniture retailer can collect payment remotely before arranging delivery.
The fewer steps between receiving the request and making the payment, the easier it becomes for customers to choose ACH.
3. Present ACH as a Convenient Payment Choice
Customers may understand "credit card" immediately but have less familiarity with terms such as "ACH debit."
The way you present the option matters.
Consider customer-friendly language such as "Pay from Your Bank Account" or "Pay by Bank" alongside ACH terminology where appropriate.
The goal isn't to give customers a lesson on the ACH network at checkout. It's to make the payment choice clear.
Employees who discuss payment options with customers should understand it as well. A simple explanation can be more effective than industry terminology:
"You can pay directly from your bank account using the secure link we send you."
That tells customers what they need to know without making the process sound complicated.
4. Make ACH Visible for High-Dollar Payments
ACH can be particularly useful in businesses where customers routinely make substantial payments, such as automotive, home furnishings, building materials, home improvement, healthcare, and other high-ticket purchases.
As transaction amounts increase, payment acceptance costs become more noticeable. Consider a business accepting a $5,000 payment by credit card with a 3% processing cost. That represents $150 on a single transaction.
If the business absorbs the credit card processing cost, that expense reduces the profit on the transaction. If the business instead imposes a compliant credit card surcharge, the customer could face an additional $150 charge for choosing to pay by card.
ACH gives customers another way to make a high-dollar payment directly from a bank account. A customer paying a contractor, purchasing furniture, covering a substantial repair bill, or making another large payment doesn't have to assume a card is the only convenient digital option.
The key is making customers aware of ACH before the payment is due rather than introducing it as an afterthought at checkout.
5. Ask for ACH at the Right Moment
Customers can't choose a payment method they don't know is available.
If your business wants more ACH payments, incorporate the option where payment decisions actually happen.
That could mean mentioning ACH when you:
- Send an invoice.
- Request a deposit.
- Notify a customer that an order is ready.
- Complete a service appointment.
- Follow up on an outstanding balance.
- Send a payment request by text or email.
The message doesn't need to be complicated. A direct call to action such as "Pay securely from your bank account" can introduce the option while giving the customer a clear next step.
Customers who have a simple experience paying by bank may also become more comfortable choosing it again.
The Best Way to Increase ACH Adoption Is to Make It Easy
Merchants have a strong financial reason to encourage ACH payments. Customers need their own reason to choose them.
Convenience can provide that reason.
When paying from a bank account is easy to access and complete, ACH becomes a more competitive payment option.
CrossCheck's Pay-by-Link combines ACH payments with Plaid-powered open banking technology to create a straightforward digital payment experience. Merchants can send customers a secure payment link by text or email, allowing customers to select their financial institution, connect their bank account, and authorize the payment.
By simplifying the ACH experience, merchants can give customers a practical alternative to card payments while reducing their own payment processing costs.
Ready to make ACH payments easier for your customers? https://www.cross-check.com/free-consultation Schedule a consultation with CrossCheck to learn how ACH + Open Banking can work for your business.
Frequently Asked Questions About Increasing ACH Payments
How Can I Get Customers to Pay by ACH?
Make ACH easy to find, understand, and complete. Give customers a direct way to pay from their bank account, explain the option clearly, and offer ACH when payment is due. Secure payment links can also allow customers to complete ACH payments from their phones or computers.
Why Would a Customer Choose ACH Instead of a Credit Card?
Convenience can play a significant role. Customers may choose ACH when paying directly from their bank account is simple. If a business imposes a compliant credit card surcharge, paying by ACH can also allow the customer to avoid that additional card-related charge.
Can Businesses Send Customers an ACH Payment Link?
Yes. CrossCheck's Pay-by-Link allows merchants to send secure ACH payment links through text or email. Customers can use the link to connect their bank account and authorize payment.
Do Customers Have to Enter Their Routing and Account Numbers to Pay by ACH?
Not necessarily. Open banking technology can allow customers to securely connect their bank account instead of manually typing routing and account numbers. CrossCheck's Pay-by-Link uses Plaid technology to verify account information in real time.
What Is the Difference Between ACH and Pay by Bank?
ACH refers to the payment network that moves funds electronically between U.S. bank accounts. "Pay by bank" generally describes the customer-facing experience of paying directly from a bank account. Modern pay-by-bank experiences can use ACH as the underlying payment rail while making account connection and payment authorization easier for the customer.