Aug 05, 2013 Sean Albert
Businesses are starting to implement new electronic payment technologies for a number of reasons. Innovative services allow vendors and retailers to be more flexible in offering payment solutions to customers and many are realizing that they can save money by using ACH and prepaid cards instead of checks and credit cards , which can be pricey to process.
However, one of the major concerns that many business owners have regarding monetary transactions is susceptibility to fraudulent activity. Some may believe that newer technologies represent a greater risk for accepting payments, but a recent survey from BankInfoSecurity debunked that myth. The source noted that its 2013 Face of Fraud Survey found that respondents listed check, payment card and phishing related fraud as being a greater concern than ACH fraud.
Despite the security benefits that many ACH cards provide, small business owners are not taking full advantage of the technology. Some have implemented that service in some form, often allowing consumers to purchase goods and services via ACH. However, when making payroll, many small business owners who are still relying on traditional checking formats are losing money.
According to data from the National Automated Clearing House Association (NACHA), small firms can significantly reduce payroll expenses if they switch to a direct deposit format through ACH payments. The source reported that owners can save between $150 and $300 every year, per employee by using ACH systems to pay staff members.
In fact, the source stated that many employees prefer to be paid with direct deposit, which can go a long way in increasing worker retention rates for businesses. The benefits that ACH offers are so significant that 86 percent of all enterprises surveyed by NACHA noted that they hold a favorable sentiment over ACH payments.