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Tag: ach payments

  • Case Study: How an Autopsy Doctor Saved $20K with Aurora’s ARISE Platform

    Case Study: How an Autopsy Doctor Saved $20K with Aurora’s ARISE Platform

    Reading Time: 2 minutes


    When The Autopsy Doctor, a provider of private autopsy services, faced mounting credit card processing fees, they turned to Aurora Payments and the ARISE platform for a more cost-effective and flexible solution. By offering clients a choice between ACH and credit card payments, they not only saved $20,000 in fees in the first year but also improved customer satisfaction and streamlined back-office operations.

    The Client

    The Autopsy Doctor provides independent autopsy services for families, legal professionals, and healthcare organizations. With an average transaction size of $6,000, payment processing costs were a significant concern for the business. 

    The Challenge

    High credit card fees were threatening The Autopsy Doctor’s bottom line. With every transaction costing over $240 in fees, the company faced pressure to increase service rates or find a more efficient way to manage payments. The administrative burden of following up with clients on payment options further strained their resources. 

    The Solution

    Aurora Payments introduced The Autopsy Doctor to the ARISE platform, which enabled dual-charging functionality, allowing clients to pay via ACH or credit card using a single payment link. Clients could instantly see how much they would save by selecting ACH, encouraging more cost-effective payment choices and faster payment. 

    The Results

    • $20,000 saved in credit card processing fees in the first year 
    • Majority of clients now choose ACH, saving approximately $240 or more per transaction 
    • Maintained competitive pricing without raising rates 
    • Reduced administrative work, leading to time and cost savings 

    Client Quote

    “Our clients appreciate the ability to choose how they pay and really like seeing how much they save with ACH. We saved over $20,000 last year alone, which helped us avoid raising our rates. It’s a win-win. And we save time, too, because there’s less back-and-forth.” – 
    Marcie Schultz, Administrator, The Autopsy Doctor 

    Conclusion

    For The Autopsy Doctor, switching to Aurora’s ARISE platform has delivered measurable financial and operational results. By empowering clients with flexible payment options and reducing overhead, the company has strengthened its business and client relationships — all without raising prices. 

  • ACH Payment Processing for Small Businesses: Why It’s Growing & What You Should Know 

    ACH Payment Processing for Small Businesses: Why It’s Growing & What You Should Know 

    Reading Time: 5 minutes

    ACH payments are increasingly used by small businesses that want to reduce costs and simplify operations. With lower fees than many credit card transactions and faster turnaround than paper checks, ACH can help improve cash flow while providing a secure way to move funds. Whether you’re running payroll, collecting subscription payments, or paying vendors, ACH offers a reliable approach for routine transactions that doesn’t overcomplicate things. 

    If you’re ready to streamline your money movement, understanding the fundamentals of ACH is helpful. From setup to compliance, this article walks you through what you need to know to decide whether ACH is a fit for your business. 

    Why ACH Payments Are Growing for Small Businesses 

    Small businesses are increasingly turning to ACH payments to manage rising costs and operational challenges. This payment method offers real financial benefits, including cost savings, faster settlement, and enhanced transaction security. 

    Lower transaction costs

    One of the most significant advantages of ACH payments is the lower transaction fees compared to many credit‑card options. Whereas credit‑card fees often include a percentage of the transaction amount, as well as fixed per‑transaction charges, ACH payments typically have a more predictable, fixed rate regardless of transaction size. For businesses with subscription or recurring payment models, simpler, predictable transaction fees help maintain margins and ease budgeting. 

    Faster processing times

    ACH payments are known for relatively quick settlement. The network managed by Nacha (and others) supports next‑business‑day or even same‑day settlement in many cases. Qualifying payments submitted before cut‑off times can settle the same business day, giving businesses more control over cash flow and improving access to funds when timing matters. 

    Improved security and cash‑flow management

    Electronic ACH transactions provide a digital audit trail, which supports tracking, reconciliation, and dispute resolution. Because ACH moves funds through networked financial institution systems rather than relying on manual, paper-based processes, the risk of lost checks or manual-entry errors is reduced. In addition, recurring payments—such as memberships or subscriptions—are handled well by ACH, enabling consistent cash‑flow since businesses don’t need to chase late payments or switch methods frequently. 

    How ACH Payments Work 

    To use ACH effectively for small‑business payment processing, it helps to understand the components and transaction flow. 

    The ACH process involves multiple parties: the business (originator), its bank (Originating Depository Financial Institution – ODFI), the ACH operator (such as The Clearing House or the Federal Reserve FedACH system), and the receiving bank (Receiving Depository Financial Institution – RDFI). 

    Here is a simplified flow: 

    1. Your business instructs your bank (ODFI) to initiate ACH transactions (credits or debits). 
    1. The ODFI batches and forwards those transactions to the ACH operator. 
    1. The operator sorts and forwards entries to the appropriate RDFIs. 
    1. The RDFIs post the funds to consumer or business accounts. 
    1. Settlement times vary: many standard ACH transactions settle within 1 to 2 business days, while qualifying payments may settle the same day. 

    Types of ACH transactions

    ACH credits: Payments pushed from your account to another (vendor payments, payroll deposits). 

    ACH debits: Pull funds from a customer’s account (with proper authorization) for membership dues or subscription billing. Debits typically require stronger authorizations and are subject to return‑rights rules. Credits often settle faster because the originator controls when the payment is initiated. 

    Setting Up ACH Payments 

    Once you decide ACH is relevant, there are compliance and technical steps to follow. 

    First, your business will need a commercial bank account and an ACH‑enabled payment processor or bank. You must obtain proper authorizations from customers before initiating ACH debits. That authorization should include the customer’s name, bank account, and routing numbers (or other acceptable verification), the payment amount or a variable amount indicator, frequency, your business name, and contact details. For recurring payments, you should notify customers in advance of changes. 

    Compliance with Nacha’s operating rules is vital: you must maintain records, manage returns (such as NSF or closed‑account returns), and monitor return rates. Excessive return rates may trigger penalties or loss of ACH privileges.

    On the technical side, integration may involve your processor’s API or portal. Once underwriting is complete and your account is approved, you can begin ACH processing—with benefits like cost savings and operational simplicity that make the effort worthwhile. 

    ACH Payment Processing: Pros and Cons 

    It’s important to weigh both the benefits and challenges of ACH payment processing to decide how it fits your business model. 

    Benefits: 

    • Cost efficiency: ACH transaction fees are typically much lower than credit‑card fees. 
    • Predictability: Recurring ACH payments provide steady, scheduled cash flow. 
    • Reduced manual tasks: Automated debits or credits can reduce errors and administrative burden. 
    • Security: Digital trail and network controls help reduce the risk of fraud. For example, the ACH Network is expanding Same‑Day ACH and has a robust processing infrastructure. 

    Drawbacks: 

    • Settlement time: Standard ACH may take one to two business days (or more) to settle, unlike real‑time payment networks. Late‑day or holiday initiations can add delay. 
    • Return or failure risk: Errors (wrong account number, closed account, insufficient funds) cause returns or failed transactions, which may incur fees or delays. 
    • Domestic limitation: ACH is primarily for U.S. bank‑to‑bank transfers; international payments often require wire transfer or other higher‑cost alternatives. 
    • Setup and compliance: Proper authorization, record‑keeping, and monitoring are needed; failing to comply with operating rules may pose a risk. 

    Impact on Cash Flow 

    For a small business, the ability to predict cash flow and manage transaction costs matters significantly. Using ACH can strengthen cash‑flow management by reducing variable fees and enabling regular, automated payments. For companies with subscription or membership models, ACH debits can turn unpredictable customer behavior into predictable revenue streams. 

    For example, suppose a business currently pays 3% per transaction on credit‑card payments and switches to ACH at a lower fixed transaction fee. In that case, the cost savings add up—and the reduced cost may help support growth or free up resources for other investments. At the same time, you should plan for settlement gaps: if standard ACH settlements take a day or two, you may need to manage working capital or short‑term cash needs accordingly. 

    Getting Started with an ACH Solution 

    Choosing the right ACH payment processor is a critical decision. When evaluating providers, focus on features such as transparent transaction fees, reliable settlement times, strong security, recurring billing support, and integration with your existing systems. 

    For example, if you partner with a provider that offers robust ACH credits and debits, supports recurring payments, and aligns with your small‑business needs, then you can streamline payments, reduce fees, and enhance your operational workflows. 

    Why ACH Belongs in Your Small Business Payment Strategy 

    ACH payment processing offers small businesses a compelling alternative to traditional payment methods. With lower transaction fees, predictable recurring payment workflows, and the ability to manage cash flow more effectively, ACH can be a key tool in your payment‑processing strategy. 

    That said, success with ACH requires choosing the right provider, understanding the settlement timelines, and securing proper customer authorizations. By evaluating transaction fees, integration, security, and workflow impact, you can determine whether ACH deserves a prominent place in your payments portfolio. 

    ACH Payment Processing for SMBs FAQs

    Q: How can small businesses ensure compliance with Nacha rules when using ACH payments? 

    Small businesses should implement secure processes for managing bank‑account information, enforce proper customer authorizations (especially for ACH debits), verify routing numbers, monitor return rates, and maintain documentation as required by the Nacha Operating Rules. 

    Q: What should I do if an ACH transaction is delayed or fails because of insufficient funds? 

    If a transaction is rejected or returned for insufficient funds, contact your customer to identify when funds will be available and consider re‑processing or offering an alternative payment method. Review the payment processor’s policies on returns and any associated fees. 

    Q: How fast will I get paid after a transaction?

    Most solutions offer next-day or same-day payouts on card transactions. Faster access to funds helps pet care businesses manage cash flow, cover supplies, and reduce financial stress.

    Q: How does ACH payment processing help businesses with recurring billing manage their cash flow more effectively? 

    ACH allows businesses to automate recurring payments, generating predictable revenue and reducing time spent chasing late payments. With fewer manual invoice cycles and more consistent payments, companies can forecast cash flow more reliably and devote resources to core operations rather than collection efforts. 

  • What Are ACH Payments & How Can These Transfers Help Your Business?

    What Are ACH Payments & How Can These Transfers Help Your Business?

    Reading Time: 5 minutes

    ACH payments are a type of electronic bank-to-bank payment. The ACH (or Automated Clearing House) network facilitates that transfer of money from one U.S. bank account to another. It is similar to a wire transfer, paper checks, or moving cash between accounts, except bank-to-bank transfers are much faster and less expensive than a wire transfer.

    Which Industries Benefit from ACH Payment Processing?

    ACH payments are widely used across industries for their affordability, reliability, and ease of automation. Here are just a few examples of how different sectors benefit:

    Professional Services

    Attorneys, consultants, and accountants use ACH to collect retainers or invoice clients on a recurring basis.

    Healthcare

    Clinics and private practices accept co-pays or set up automated payment plans for patients via ACH debits.

    Property Management

    Landlords and property managers use ACH to collect monthly rent without processing paper checks.

    Nonprofits

    Charitable organizations simplify donations with recurring or one-time ACH contributions.

    Payroll Providers

    Businesses and payroll platforms rely on ACH for direct deposit of wages to employees, often with same-day or next-day delivery.

    Understanding Direct Deposits, Direct Payments, and ACH Payment Flows

    ACH transactions fall into two primary categories: direct deposits and direct payments, both of which can be processed as either ACH credits or ACH debits. Direct deposits typically involve pushing funds into a recipient’s bank account—employers sending paychecks, government agencies distributing tax refunds or benefits, or businesses disbursing reimbursements are examples. These transactions are almost always initiated by the payer and are an everyday use case for most consumers.

    On the other hand, direct payments are initiated to move money between individuals, businesses, or both, often for things like bill payments, product purchases, or donations. Depending on who initiates the transaction, a direct payment can either be an ACH credit (pushing funds) or an ACH debit (pulling funds with authorization). ACH debits are especially valuable for businesses looking to collect recurring payments, settle overdue balances, or simplify customer billing. Together, these mechanisms make ACH payments a versatile and efficient method for both sending and receiving money in a variety of business and personal contexts.

    How Long Does it Take to Process a Bank-to-Bank Transfer?

    ACH payment timing depends on the type of processing used, and businesses can choose between speed and cost-efficiency based on their needs. While standard ACH transfers are reliable for everyday use, faster options like same-day and instant ACH are available for time-sensitive payments. Here’s how each option works:

    • Standard ACH – Most transactions settle within 1–2 business days after initiation.
    • Same-Day ACH – Available for eligible payments submitted before daily cutoff times. Funds often arrive on the same business day.
    • Instant ACH – Some providers offer near-instant settlement for a premium fee, though availability depends on participating banks.

    How Much Does an ACH Payment Cost?

    ACH payments are known for their affordability, with typical fees ranging between $0.20 and $1.50 per transaction depending on volume, payment provider, and whether the business connects directly or through a third-party processor. In contrast, credit card processing fees typically range from 2.5% to 3.5% of the total transaction amount, making ACH a significantly more cost-effective option, especially for larger or recurring payments.

    While some large enterprises choose to obtain direct access to the ACH network, this route can be complex and expensive due to regulatory overhead, staffing requirements, and technical infrastructure. Most businesses instead opt to work with a third-party payment processor like Aurora Payments, which provides simplified access to low-fee ACH payments, fast onboarding, and transparent pricing, all without the need for extensive internal resources.

    Are ACH Payments Safe?

    Yes, because ACH transfers are built on a secure and regulated system operated by the ACH Network, which is governed by the National Automated Clearing House Association (Nacha). Nacha sets and enforces the rules that every participating financial institution, business, and processor must follow to ensure safe, consistent, and compliant transactions across the U.S.

    While Nacha doesn’t process payments directly, it plays a vital role in maintaining the integrity of the network. Payments move securely between bank accounts using strict protocols, including bank-level encryption, digital authentication, and fraud detection practices. Compared to credit cards, ACH presents lower fraud risk and fewer chargebacks, and all transfers are digitally recorded, providing an auditable trail that supports reconciliation and dispute resolution.

    Why Should You Accept ACH Payments?

    ACH is no longer a niche payment method—it has become a critical component of the U.S. financial system. In 2024, the ACH Network processed over 33.6 billion transactions, totaling more than $86.2 trillion, according to Nacha . This growth reflects rising adoption across industries for use cases like direct deposits, recurring billing, and B2B payments and highlights increasing demand for fast, low-cost alternatives to checks and wire transfers.

    If your business collects payments from customers, clients, or partners, accepting ACH payments can offer significant advantages. ACH is especially beneficial for recurring billing, large transactions, and businesses looking to cut down on processing fees while improving payment reliability. Whether you’re a service provider, subscription business, nonprofit, or property manager, ACH is a flexible and low-cost solution that helps streamline operations and get you paid faster.

    Benefits of accepting ACH payments include:

    • Lower transaction fees compared to credit cards and wire transfers
    • Faster settlement options with same-day or instant ACH
    • Improved cash flow forecasting
    • Ideal for recurring payments, subscriptions, and invoices
    • Reduced manual processing and paperwork
    • Secure, bank-to-bank transfers with digital tracking
    • Easily integrated with accounting and billing systems
    • Helps reduce late or missed payments through automation

    How to Set Up ACH Payments with Aurora

    Aurora Payments makes all types of payment processing easier, including bank-to-bank transfers. And getting started your business set to accept with ACH payments is quick and flexible with us. Our customers enjoy:

    • Fast onboarding – Most businesses are ready to accept ACH transfers within one business day.
    • No-code or integrated tools – Use our standalone portal or connect with your existing systems.
    • Custom branding – We offer a white-labeled ACH experience for clients and customers, helping to reinforce your brand.
    • Flexible billing support – Set up one-time invoices, recurring billing, or payment plans to suit your business model.

    If you have an in-house development team or SaaS platform, Aurora offers API-based ACH integration to streamline your payment workflows. Developers can connect ACH functionality directly into your app or back office system, supporting real-time status updates, recurring billing, and secure bank account tokenization. We also offer no-code options for non-technical teams, ensuring everyone can benefit from ACH without added complexity.

    FAQs About ACH Payments

    Can I accept ACH transfers from customers without a website?
    Yes, Aurora provides no-code portals and invoice links that allow you to collect ACH payments without a website.

    How long do ACH payment returns or chargebacks take?
    ACH returns for insufficient funds (return code R01) typically occur within 2–5 business days. Unauthorized returns (return code R10) may be filed by the customer up to 60 days after settlement.

    Are ACH bank-to-bank transfers reversible?
    Yes, but only under specific conditions. Customers can dispute unauthorized debits, and businesses must follow Nacha guidelines to respond.

    What’s the difference between ACH payments and eChecks?
    An eCheck is essentially a type of ACH debit that uses the customer’s routing and account number. The terms are often used interchangeably.

    Can I use ACH for international payments?
    ACH payments are primarily designed for transactions within the United States and U.S. territories. While it is technically possible to send International ACH Transactions (IATs), they are subject to strict compliance requirements, including screening by the Office of Foreign Assets Control (OFAC). Due to these complexities and slower processing times, most cross-border payments are better handled using wire transfers or international payment rails. However, if you’re working with U.S.-based accounts owned by international entities, ACH may still be a viable and cost-effective option.

    Get Started with ACH Payments

    Ready to reduce fees and get paid faster? Contact Aurora Payments and discover why you should accept ACH payments to lower transaction fees, improve cash flow forecasting, and increase payment processing security for your business.

    Email sales@risewithaurora.com to learn more and schedule a demo.