Credit cards may rule the transaction world, but electronic checks are on the rise.

Last year, customers made nearly 23 billion Automated Clearing House (ACH) payments—a 5 percent increase over the previous year—and transferred more than $40 trillion via e-checks. As more consumers realize the benefits of e-checks over credit cards (they’re quicker, faster and easier to use), businesses are increasingly adding ACH as a payment option.

It’s a particularly attractive option for tech support companies, whose transactions are often ideal candidates for ACH payments. In general, e-checks offer the biggest benefits for companies that:

  • Bill for monthly services
  • Sell big-ticket items or service bundles

For IT support companies, ACH payments can eliminate a lot of the pain points associated with credit cards. For example, they let you:

Pay lower transaction fees. Unlike credit card companies, which charge a transaction fee based on the amount of the sale, banks charge a flat fee for ACH payments—around 45 cents per transaction. Compare that to the fees you’ll pay on a $500 credit card sale, which could run as high as $20. With the large monthly payments IT companies regularly accept, this can translate to significant savings.

Avoid chargebacks. Chargebacks represent one of the biggest hidden costs of accepting credit cards. Tech support companies often see a lot of chargebacks from clients who pay by credit card and then reverse the charge through their issuing bank. This can drain resources and disrupt the cash flow of a business. Because ACH payments are sent directly from the customer’s bank account, they allow you to avoid chargebacks.

Get paid faster. Electronic checks get deposited directly into your account, eliminating the 5-10 days of transit time it takes to get paid from a credit card transaction. Not only does this stabilize cash flow, but it minimizes trips to the post office and bank.

Set up recurring billing. When customers can use automatic recurring payments, they’re more likely to pay their bills on time. This means you can count on receiving money on the agreed-upon date each month—and spend less time chasing down clients who haven’t paid.

Get quicker underwriting. Because the tech industry is known for its high number of chargebacks, many credit card processors will see an IT provider as a high-risk merchant account, which can make it harder to obtain underwriting for credit card transactions. Plus, when you’re considered a high-risk merchant account, you often end up with worse terms and higher fees. ACH payments eliminate this problem so companies can get underwriting much faster.

Getting started with ACH payments is easy. Bankcard Brokers can set you up with the industry’s leading ACH processing program, which seamlessly integrates with your existing system. Contact us today to learn how e-checks could boost your business.


[Photo by:, by Gozde Otman, via Content License]