Accepting the payment methods that are most convenient to your customers shouldn’t mean that your business is hit with massive charges. However, credit card processing fees are often still one of the most expensive costs your business will face regarding payments, with companies paying around 1.3%-3.5% of each transaction that they process in fees, before the payment processor’s cut is even taken.
An alternative to consider that is just as, if not even more convenient for customers as credit card payments, and cheaper for your business to process, is Automated Clearing House or ACH payments. Offering ACH is not only a way to lower costs for your business, but it also provides customers who’d prefer not to pay with a credit card a viable alternative option to go with. So, how can you encourage your customers to pay with ACH?
The Dilemma
Getting customers who are used to making payments using credit cards to switch to ACH payment solutions could take some encouraging. The good news is that, today, paying with a bank account is becoming more and more popular, with a growing percentage of Americans not using a rewards credit card. However, other customers are used to credit card use and might take some persuasion. Here are some of the best ways to encourage customers to use ACH payment solutions.
One-Time Bonuses
Using ACH to offer a bonus to customers can be a great way to incentivize them to use this method of payment. There are lots of options that you could consider offering including cash back rewards, one-time discounts, store credits and more.
Discounts
When a business accepts ACH payments and makes savings on credit card fees as a result, those savings can be passed onto customers through rewards and discounts, and as a way to encourage more customers to use ACH to pay. There are several companies that are already doing this, such as SmartPay Rewards at gas stations, which allows customers to get ten cents off each gallon of gas that they purchase when paying with their bank account rather than a credit card.
Rewards Programs
Customers who are used to earning rewards for spending on their credit card might be some of the toughest to persuade to switch to making ACH payments, which is why it’s a good idea to offer a rewards program to make the transition easier. When customers can earn points that can be redeemed for shopping, food, and other purchases when they make a payment via ACH, they may be more tempted to try it out.
Quick and Easy Verification
Nobody wants to wait days to be able to make ACH payments when it takes less than a minute to swipe a credit card. Because of this, you need to make sure that the ACH verification and payment processes are as simple and as user-friendly as possible. Verification through an online banking app, for example, rather than microdeposits, is faster and more convenient for most customers today.
