Good businesses focus on getting paid faster to manage their cash flow. One of the best ways to do that is to offer a variety of convenient payment methods. Bill.com offers electronic payments processing for ACH payments (or EFT payments) and credit cards.
ACH transfers are essentially bank-to-bank transfers, and they are the fastest way to get paid. This is especially true when combined with a payments platform such as Bill.com, which properly pairs the payment with your invoice, and immediately records your payment in your accounting software. When you use ACH payment for your business, instead of waiting for checks from your customers to arrive, payments arrive in your bank account as a direct deposit. This eliminates the long wait for checks to arrive, as well as the trip to the bank to deposit the paper check.
EFT payments, or electronic funds transfer, are synonymous with ACH payments, and are used to describe the process of transferring funds between bank accounts.
Your business may consider using Bill.com to accept credit cards as a form of customer payment. However, you should be aware of the pros and cons of processing credit cards for your business.
An advantage for credit cards is that it is a debt instrument. It allows your customers to borrow against it to ensure your business receives payment. The prevalence of credit cards also helps your customer adopt this form of payment.
However, the major drawback of credit cards over something like ACH is the cost. It typically costs an average of ~1.5-3% in order to process credit card payments. This means that, for an invoice of $5,000, your business would lose $150 as a credit card processing fee. Using ACH payments through Bill.com, all ACH transfers are one flat fee: $0.49. This means that the same $5,000 payment would only cost your business $0.49.
Besides offering a payments processing platform, Bill.com offers many advantages to your business. The accounts payable automation solution provides an approval workflow to manage multiple invoice approvers in your company, and the accounts receivable automation product also provides recurring invoices and overdue notices. Our AP and AR solutions both sync to your accounting software to eliminate double data entry.