All small business owners depend on their customers to maintain the costs of operating a business. With the digital transaction industry becoming more complicated and advanced, it can be difficult to decide which is the best digital payment solution for your company.<\/p>\n
However, business owners have plenty of options and reliable methods when it comes to accepting payments from your clients and customers. When determining which digital payment option works best, consider what your needs are and pick the service that serves those needs.<\/p>\n
Here are some examples of digital payments available for you and your company.<\/p>\n
\u00a0<\/strong><\/p>\n Electronic Funds Transfer, commonly known as an EFT, is a type of ePayment. EFT is a general umbrella term that covers various electronic payments, including but not limited to ACH transfers and wire transfers.<\/p>\n EFTs are becoming increasingly widespread with the advancement of B2B payments, with both big and small businesses moving away from traditional paper checks toward cheaper and productive alternatives: ePayment methods. Underneath this broader category lies various transaction types: ATMs, virtual cards, eChecks, direct deposit, and personal computer banking.<\/p>\n <\/p>\n Well, weighing the comparisons of ACH v. EFT<\/a><\/u> is like comparing apples to fruit. Apples are a type of fruit, but not all fruits are apples. ACH is a subset of EFT, but not all EFTs are ACH payments. The central difference is within its specificity and detail \u2014 due to the extensive range of payment practices considered to be EFTs, there are various factors that can affect the cost, timeliness, and risk level of the transaction.<\/p>\n \u00a0<\/strong><\/p>\n We\u2019re all familiar with that glorious day that comes every 2 weeks, perhaps every month \u2013 ACH day, or as everyone calls it, payday!<\/p>\n Not familiar?<\/p>\n When you notice that your salary was automatically deposited into your bank account, that\u2019s ACH. When you pay your car loan or set your mortgage (or any recurring payments in general) to automatically pay on any day you decide, that\u2019s ACH<\/a><\/u>.<\/p>\n Known as the Automated Clearing House Network, ACH is used by tens of millions of Americans, handling everything from credit card payments to salaries to Social Security and more. Whether you call it Direct Deposit, electronic check, or direct pay, just set it and forget it \u2014 now, there\u2019s no more worrying about getting payments in on time. In 2018, ACH moved<\/a><\/u> almost 23 billion electronic payments and $51 trillion dollars, making the ACH network the most commonly-used and reliable payment system in the world.<\/p>\n You may be wondering if you\u2019ve ever used ACH \u2014 if you\u2019re familiar with these circumstances, you have probably taken advantage of the ACH network.<\/p>\n <\/p>\n ACH payments are processed in batches, meaning that the ODFIs will collect a number of requests and then send them to the ACH operator. Though delivery time is dependent on the type of ACH transaction, a standard ACH transaction can take up to three to four days to complete. However, since 2014, NACHA, the National Automated Clearing House Association, established a new standard that allows both ACH credit and debit to be eligible for same-day processing<\/a><\/u>. Consequently, funds are available by 5:00 PM at the RDFI\u2019s local time.<\/p>\n \u00a0<\/strong><\/p>\n We all appreciate the ease of use a credit card offers, but that ease comes at a cost in the form of APR for remaining balances. Credit cards<\/a><\/u> offer you a line of credit<\/a><\/u> that can be used for purchases, cash advances, or balance transfers that requires you to repay the loan amount in the future. There will be a minimum payment due every month, and if the entire balance is not paid by the deadline, interest charges are applied.<\/p>\n Despite it being a simple swipe, a lot goes on behind the scenes of a credit card transaction. Once swiped, the merchant\u2019s credit card terminal asks your credit card issuer if your card is valid, and if you have enough available credit. If the transaction is approved, your purchase is complete. With every good or service bought, your available credit<\/a><\/u> decreases by the same amount.<\/p>\n What makes a credit card separate from a regular loan is that your credit limit is still available after paying the owed balance on the credit card. This process \u2014 spending up to your credit limit and repaying the costs<\/em> \u2014 can be repeated perpetually, provided that you abide by the terms of the line of credit (which include paying your dues on time and not going beyond your credit limit).<\/p>\n \u00a0<\/strong><\/p>\n When time becomes an urgent issue and you need to send or receive money immediately, a bank transfer (otherwise known as a wire transfer), is your go-to. Wire transfers are reliable, safe, and instantaneous \u2014 even for greater transactions, where funds will be available to the recipient more or less instantly.<\/p>\nElectronic Funds Transfer (EFT)<\/strong> Payments<\/strong><\/h2>\n
Sounds similar to ACH. What\u2019s the difference? <\/strong><\/h2>\n
ACH: Automated Clearing House Network <\/strong><\/h2>\n
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Sure, ACH sounds promising, but how long will it take?<\/strong><\/h2>\n
Credit Card<\/strong><\/h2>\n
Wire Transfer <\/strong><\/h2>\n