Saturday, June 19, 2021

Is ACH Better Than Check Payments? Here Are the Pros and Cons

So you have to make a payment for a service or buy an item? What do you do? Nowadays, most people don’t want to handle cash and who can blame them.

There are other ways that you can make a payment that doesn’t involve cash. Yes, you can use a check. You can also make one through an ACH transfer.

It’s ACH vs. check. If you can’t decide which payment method to use, read this article. You’ll learn which one is best for you.

The Pros and Cons of ACH

Automated Clearing House, or ACH, is a network that Americans can use to make ACH payments. An ACH payment, or transfer, is an electronic transaction between two banks. When you make a payment through the ACH network, the electronic checks pull funds from your bank account.

This is the same network that processes direct deposits, which as you know is fast. It’s the same speed that applies to payments one makes through the network. You get to experience the speed and convenience so you get your money in a matter of seconds.

If you have a business, this form of payment might be better over a check as there is no need for you to go to the bank after. You save both gas and time.

There are disadvantages to ACH payments. There’s always the risk of security concerns. There are also risks for errors that can cost you a pretty penny.

In exchange for the benefits, you do give up a lot of control over your bank account information. Your bank can choose to give this information to a third party.

The Pros and Cons of Checks

Paying with a check is one of the most traditional forms of payment. It’s one that many people still like to use.

One of the pros of paying with a check is the ability to give it to the person you’re paying. This is a possibility if the person is in your presence. This gives you peace of mind that the money will be in the right hands.

Another benefit is that you get to have more control of your money. You can write a check only when you know you have money in your bank account. This helps you to avoid an overdraft fee.

A major difference between the ACH and check payment systems is the processing time. It’s no secret that if you get a check, you’ll need to either go to the bank or take a picture of it with your banking app. The problem with this is that you won’t get the money in an instant.

You also need to consider the ACH vs. check cost. Making a check transaction costs money. This is why a lot of businesses don’t accept checks.

ACH vs. Check Considerations 

The ACH vs. check debate has been answered. As you read about the benefits of ACH vs. check, you can decide which form of payment is a better option.

Both have their respective pros and cons. Consider your needs before making a choice.

Don’t forget to explore the rest of our blog to read more great articles!


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