This article details what a Bank Transfer (ACH) is and how it benefits auction houses using atgPay.
This article contains the following sections:
- What is Bank Transfer (ACH)
- How Does Switching On Bank Transfer (ACH) Benefit My Business?
- Why Would a Buyer Use Bank Transfer (ACH) Over a Wire?
- When Will I See the Money in my Account?
- How Do Refunds Work?
- How Do I Switch Bank Transfer (ACH) On?
What is Bank Transfer (ACH)
Like credit transactions, Bank Transfers or ACH are safe, secure, and easy to utilize.
Automated Clearing House (ACH) is a U.S. financial network used for electronic payments and money transfers. Also known as "direct payments,” ACH payments are a way to transfer money from one bank account to another without using paper checks, credit card networks, wire transfers, or cash.
How Does Switching on Bank Transfer (ACH) Benefit My Business?
Buyers are looking for a secure and familiar eCommerce experience and Bank Transfer (ACH) on atgPay offers this to your buyers.
ACH is the evolution of the ‘paper check’ into a digital process.
- No need for the buyer or seller to physically organize writing, sending, or processing paper checks. With Bank Transfer (ACH), auctioneers can proactively send a buyer a prompt to pay.
ACH payments are quicker and more reliable than paper checks.
- The possibility of the check being lost in the mail is eliminated, and in the time it takes your customer to write a check, an ACH transaction can be completely submitted.
Since ACH payments are electronic, processing a payment uses fewer resources.
- No need for check paper, check ink, fuel to transport checks, time and labor to handle and deposit checks, and so on. This leaves you and your team with additional time and money to focus on other areas of the business.
There is more certainty of payment with ACH transactions than with other payment methods.
- Credit card charges can be disputed by a consumer for a multitude of reasons. ACH transactions under federal law can only be disputed for specific reasons:
- The transfer amount was incorrect.
- The transfer had an error in either account number, meaning the sender or recipient’s account numbers were incorrect.
- There was a duplicate transfer (in which case they will only reverse the duplicates).
- The transfer date was wrong.
Why Would a Buyer Use Bank Transfer (ACH) Over a Wire?
Wire transfers are not a payment method that can be innovated or made simpler with the advent of online integrations. Wire transfers are direct transfers between two financial institutions and move money in one direction, e.g., from buyer to seller only, so there is no way for you as an auctioneer to prompt buyers to make the transfer, you’re relying on the buyer totally to be proactive.
ACH transfers are bi-directional, making ACH transfers a more viable solution for both buyers and sellers, as the prompt to pay is in your hands.
When Will I See the Money in my Account?
The payment processing portals platform standard processing time is five business days, which ensures the payment is fully funded before disbursing the funds to you. After settlement, the ACH payment will be included in the auctioneer’s following standard payout day.
How Do Refunds Work?
When auctioneers choose to initiate a refund via ACH, they should be able to follow the standard current procedure. If the payment hasn’t been 'Settled' yet (you should be able to see this in the Payment Processing Portal), it is advised to wait for the initial payment to clear before issuing the refund to avoid ACH processing potential duplication on the refund.
How Do I Switch Bank Transfer (ACH) On?
atgPay should be enabled prior to bidder registration for the payment option to be visible in the event's Terms of Sale.
Bank Transfer (ACH) can be selected from the “Allowed Payment Methods” list.
We suggest adding an informative statement to the event's ‘Payment Instructions’ indicating to bidders the event is using atgPay.