Three Types of Billing: What You Need to Know About Pull ACH, Credit Cards, and Push Payment
They say money makes the world go round. Personally, I think love makes the world go round, but there is no denying that money is a huge factor when it comes to work and business. As business owners, we get paid when our clients pay us for our work. To get paid, we rely on three methods for payment, each with its own advantages and disadvantages.
Let’s have a look at those options:
Pull ACH : This is a low cost, low risk option. Processing takes five days, which is a regulatory wait.
Credit Card: The risk is low, but the cost is high. Processing takes only two days.
Push Payment: This has a low-to-middle cost with a high risk, however, one day is all that is needed for processing.
No matter the payment method, take comfort in the fact that Anchor can save you time and money. Your billing is done for you, ensuring it is always on time. Because the software connects the agreement to both the vendor and the client, it calculates all charges and add-ons from the payment period and auto-drafts and -sends the invoices on the desired, pre-approved date.
Over 95% of Anchor users opt for the auto-pay method, as they can trust the invoice will be risk free and absent of fraud or errors. Whenever necessary, the system reminds the client via email or text to act (Anchor is mobile-first to accelerate communication).
Most recurring software options require a subscription and ±1% up to $10. Anchor costs only $5 per transaction and allows you to make changes – with your client’s consent – at any time.
Typically, fees for using a credit card are over 3% - sometimes over 3.5% after all merchant fees, and that adds up. Anchor offers two options for payments: ACH, for free, or credit cards, which include processing fees.
What sets Anchor apart, however, is that with credit cards, vendors have the choice to absorb the fee or pass it along to their clients, saving over 3% from the top line. For ACH, Anchor saves time, eliminating the collection effort and automating the payment, shortening the time it takes for the money to hit the bank account.
If you think the process ends there, Anchor also verifies the payments, checks that nothing was forgotten, and reconciles with the bank.
Anchor is here to make sure you get paid on time, effortlessly.
