{"id":3347,"date":"2022-08-15T15:20:59","date_gmt":"2022-08-15T20:20:59","guid":{"rendered":"https:\/\/www.northone.com\/blog\/?p=3347"},"modified":"2022-11-25T13:39:25","modified_gmt":"2022-11-25T18:39:25","slug":"ach-uses-for-small-business","status":"publish","type":"post","link":"https:\/\/www.northone.com\/blog\/business-banking\/ach-uses-for-small-business","title":{"rendered":"5 Ways to Use ACH for Small Business"},"content":{"rendered":"\n

In the past few years alone, we\u2019ve seen a major shift from paper to electronic payment methods, and ACH is leading the charge. In fact, over 29 billion<\/a> ACH transfers were sent last year \u2014an 8.7% increase over 2020.<\/p>\n\n\n\n

As ACH continues to grow in popularity, more and more small businesses are leveraging it for their payment operations. Whether they\u2019re getting funds in<\/a> or sending payments out, small business owners across the country rely on the ACH Network to make safe and reliable business transactions.<\/p>\n\n\n\n

<\/span>What is ACH?<\/span><\/h2>\n\n\n\n

ACH<\/a> is an electronic, bank-to-bank money transfer processed through the Automated Clearing House Network. It\u2019s quick and often free to send and receive, making it an ideal payment option for small businesses.<\/p>\n\n\n\n

<\/span>How long does ACH take?<\/span><\/h2>\n\n\n\n

Small business owners can choose between two options for ACH transfers: standard or same-day.<\/p>\n\n\n\n

Standard:<\/strong> Standard delivery can take up to 3\u20135 business days, since ACH transfers are processed through the ACH Network in batches. Check your bank\u2019s policy to see when funds are typically released to customers, as timing varies from bank to bank.<\/p>\n\n\n\n

Same-day: <\/strong>Same-day ACH transfers are available with North One Accounts, as well as at most traditional banks, increasing the opportunities businesses have to send and receive money. Make sure to confirm your bank\u2019s cut-off times and transaction limits so your transfer doesn\u2019t get delayed.<\/p>\n\n\n\n

North One is a financial technology company, not a bank. Banking services are provided by The Bancorp Bank, N.A., Member FDIC.<\/em><\/p>\n\n\n\n

<\/span>When to send ACH payments for business<\/span><\/h2>\n\n\n\n

Gone are the days of waiting for checks to clear. ACH transfers make sending and receiving payments that much easier. Here\u2019s a few ways you can leverage ACH services for small business payments.<\/p>\n\n\n\n

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  1. Payroll<\/li>\n<\/ol>\n\n\n\n

    ACH transfers are perfect for small, regular payments\u2014like payroll! Most businesses use a payroll provider to do this. All you need is your employees\u2019 bank routing numbers, account numbers, and authorization as well as the type of accounts they use (checking or savings).<\/p>\n\n\n\n

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    1. Invoices<\/li>\n<\/ol>\n\n\n\n

      Businesses of all sizes prefer the convenience of paying their vendors and suppliers through ACH. It\u2019s quick, easy, and low cost. Not to mention, sending money electronically is a lot more secure than paper checks.<\/p>\n\n\n\n

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      1. Bills<\/li>\n<\/ol>\n\n\n\n

        Just like invoices, monthly bill payments are made a lot easier with ACH. The processing fees are lower than credit card payments and faster than waiting for paper checks in the mail. Plus, the same-day functionality has your back when you (almost) forget to pay.<\/p>\n\n\n\n

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        1. Taxes<\/li>\n<\/ol>\n\n\n\n

          Small business owners can pay their taxes using ACH, too! Just make sure to check the IRS website<\/a> to confirm the types of business taxes that can be paid this way. \u201cIRS USA Tax Payment\u201d will be shown on your bank statement as proof of payment.<\/p>\n\n\n\n

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          1. Account transfers<\/li>\n<\/ol>\n\n\n\n

            ACH transfers make it easy to move money from one bank to another. Some business owners operate with multiple accounts, and ACH lets them safely move their cash around without high processing fees.<\/p>\n\n\n\n

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            <\/span>Benefits of ACH processing for small businesses<\/span><\/h2>\n\n\n\n

            If you\u2019re considering using ACH for your business payment processing, there are several benefits to keep in mind. They include:<\/p>\n\n\n\n