For years, I had seen the letters “ACH” pop up – on bank account statements and as options when selecting how to make or receive a payment. I figured that it was just something related to online payments that I might look up the meaning of the letters if got bored one day. I’m a remote attorney and travel addict. I never got that bored.
I did, however, get more interested when Freshbooks, an online invoicing and accounting platform, announced that it has added ACH payments as a new way for its US users to get paid. So, I looked into what ACH means and why it matters for freelancers and small businesses. Here’s what I found out:
What is ACH?
ACH is an acronym. It stands for Automated Clearing House. The Automatic Clearing House is a system that serves a network of financial institutions by helping them transfer funds electronically. ACH payments are pulled directly from one person or business’s bank account and sent to another. It removes the check or card payment that usually serves as an intermediary step in the payment process.
You can read more about ACH payments generally here, here, and here.
I know, definitions, yawn, so let’s get to the good stuff…
What Does Freshbooks ACH Payments Mean for Freelancers and Small Businesses?
Freshbooks Payments Page gives you all the details on how their ACH payments benefit your business, but these are a few of the highlights:
- Checks are Dead. Do you really want to have to wait for a check in the mail then deposit it? ACH provides the same account-to-account benefits of checks without the hassle.
- You Keep More Money. The fees for ACH transfers through Freshbooks are low, really low: 1%.
- It’s quick. Currently, ACH transfers will be in your account in 3 to 5 days. But Freshbooks is constantly improving their platform and will offer same day/next day fund delivery by the end of the year.
- Automation. No need to track or input check payments. Freshbooks will automatically mark the appropriate invoice as paid once the ACH transfer is made.
If you’re thinking that Freshbooks ACH payments sound pretty great except you’re not using Freshbooks yet, it’s worth your time to check them out. Pricing varies with business needs so you don’t pay for more than you need.
