![]() Convenience and speed: You can use EFTs for a wide variety of tasks without having to write cheques or use cash, and the money is moved much faster than if you were to use manual transfer solutions.It can be a good idea to make ACH transfers available as part of your online invoicing process so that customers without debit or credit cards can make purchases online.Įlectronic funds transfers have many benefits, both for businesses and consumers. However, ACH transfers can be useful for automatic payments for customers who are making large purchases, and for paying suppliers. Unlike with an EFT, if a customer wants to use an ACH payment, they need to know their transit number and account number - so it's often more convenient to use another payment method for single purchases. Note that an ACH payment is sometimes referred to as an automated funds transfer (AFT) in Canada. This type of payment is much more commonly used in the United States than in Canada, but for Canadian businesses with an American customer base, it may be worth having on offer. What is an Automated Clearing House payment?Īn ACH payment is a type of EFT that transfers money between financial institutions using the Automated Clearing House network. ATM transactions, wire transfers, and debit card transactions are all EFTs, as are ACH payments. You can use this payment method for one-time charges or to deduct recurring charges like monthly membership dues.Īn EFT is simply a payment sent electronically, without the exchange of cash or cheques. ![]() EFT payments can be used in many situations, like paying suppliers, billing customers, and direct deposit payroll. EFT refers to electronic funds transfer and this is a digital transaction where funds are deducted from one account and sent to another account.
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