Low Costs
As mentioned above, wire transfers for businesses often have a huge processing fee as the fee is equal to a percentage of the transaction. This causes issues for businesses built on subscription systems or companies that sell a large number of individual products, decreasing the margin of profit by costing so much in fees. On the other hand, whilst paper checks cost the least, the amount of labor and time they cost to process means that ACH payments again come out on top as the fastest low-cost option. The low processing fees of ACH payments are fantastic for all businesses, but the ones that benefit the most tend to be those that are subscription-based, as the ACH network has excellent support for recurring payments. This means that most of the time consumer bills will come through on time, and when they don’t, there will be plenty of money to cover it as there is so much less going to processing fees.
