ACH Can Help Transit
American consumers and businesses make tens of billions of payments directly from their bank accounts each year using ACH. Most transit agencies operate on tight budgets, and with COVID-19 causing huge drops in ridership (and fare collections), every dollar counts more than ever. ACH can help. When passengers load funds to their fare accounts from their bank accounts using ACH, the associated costs to your agency are generally less than with other types of payments.
ACH Can Lower Costs
With ACH, businesses – including transit companies – can lower overall costs vs. other payment types.
What is ACH?
ACH transactions include:
- ACH Credit: An ACH transfer where funds are pushed into a bank account. The best example is used for payroll – Direct Deposit.
- ACH Debit: An ACH transfer where funds are pulled from a bank account. For example, when an individual sets up a recurring monthly payment for a mortgage or utility bill – or transit bill.
Benefit of Recurring ACH
The return rate for recurring ACH is less than 0.5%. Other payment methods can experience return rates of more than 5%.
Drive Customers to Pay You Via ACH
It’s hard to get customers to change payment behavior. We hear that all the time. In many instances, it’s the customer that chooses how to pay. And billers/suppliers, don’t want to inconvenience customers. While that seems like good business sense, you can influence customer payment behavior without causing any ill effects.