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Chase Business ACH Payments | Definition | How-tos
Automated Clearing House (ACH) payments have become essential for businesses looking for efficient and cost-effective transaction management solutions. Chase for Business provides a suite of ACH payment services designed to accommodate the diverse needs of companies ranging from small enterprises to large corporations.
Let’s explore Chase's ACH offerings in detail, how to send and receive payments, related costs, and considerations for international transactions. We'll also talk about Wise Business, the international business account that can simplify operating a global company.
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How to Send ACH Payments with Chase Business
Chase provides a user-friendly platform for businesses to initiate ACH payments. Here's a step-by-step guide:
- Enroll in ACH Payment Services: Log in to your Chase Business Online account and navigate to the "Pay & Transfer" tab. Select "ACH Payment Services" to begin the enrollment process.
- Add Payee Information: Input the necessary details for your payees, including their bank routing and account numbers.
- Schedule Payments: Choose between one-time or recurring payments. Specify the payment amount and the desired send date.
- Authorize and Submit: Review the payment details for accuracy, then authorize and submit the payment.
Chase offers different processing options:
- Standard ACH: Payments are typically processed within 1-2 business days.
- Same-Day ACH: Payments initiated before the 2:00 PM ET cutoff are processed by the end of the same business day.
- Real-Time Payments: Payments are processed immediately, with funds available to the recipient within moments.
Sending or Receiving an International Payment - Try Wise Business
Receiving ACH Payments with Chase Business
To receive ACH payments:
- Provide Your Banking Information: Share your business's routing and account numbers with the payer.
- Authorize the Payment: Depending on the payer's procedures, you may need to complete an authorization form.
- Monitor Your Account: Regularly check your account to confirm receipt of funds.
Chase's online banking platform allows businesses to track incoming ACH payments for transparency and efficient cash flow management.
Costs Associated with ACH Payments
Chase's fees for ACH transactions vary based on the type of payment and the specific business account held:
- Standard ACH Payments: Typically incur lower fees compared to other payment methods.
- Same-Day ACH Payments: Subject to a fee of 1% of the payment amount, up to a maximum of $25 per transaction.
- Real-Time Payments: Carries a fee of 1% of the payment amount, capped at $25 per transaction.³
Additionally, certain Chase business accounts offer a specified number of free transactions per statement cycle. For instance, the Chase Performance Business Checking® account includes up to 250 debits and non-electronic deposits at no additional charge.⁴
ACH Payments for International Transactions
While Automated Clearing House (ACH) payments are a reliable method for domestic transactions within the United States, they are not typically used for international transfers. For businesses aiming to send funds abroad, wire transfers are the standard solution.
Chase's International Wire Transfer Services
Chase provides a robust platform for international wire transfers, accessible via the Chase Mobile® app or Chase.com. Key features include:
- Extensive Global Reach: Send payments in local currencies to over 90 countries and in U.S. dollars to more than 140 countries.⁵
- Real-Time Foreign Exchange Rates: Use Chase's rate calculator to handle real-time requests for foreign exchange rates, ensuring transparency in the amount being sent before setting up a payment.
- Flexible Scheduling: Arrange one-time, recurring, or future-dated wires to suit your business needs.
Considerations for International Wire Transfers
When conducting international wire transfers, consider the following:
- Exchange Rates: Chase determines foreign exchange rates at its discretion, which include a spread and may involve a commission. These rates may be less favorable than those quoted online or in publications.
- Recipient Information: Accurate recipient details, including full legal name, address, bank account number, and the bank's SWIFT or BIC code, are essential for successful transfers.
- Regulatory Compliance: Be aware of any regulatory requirements or restrictions in the recipient's country that may affect the transfer.
- Fees and Processing Times: Wire transfers generally incur higher fees than ACH payments.
Getting a grasp on these considerations will make you better prepared to navigate international wire transfers, so you can send secure payments on time to your global partners.
What Are ACH Payments?
ACH payments are electronic transfers between banks within the United States, processed through the Automated Clearing House network. They’re commonly used for purposes such as direct deposits, vendor payments, and recurring bill payments. The primary advantages of ACH payments include reduced processing costs compared to traditional checks and enhanced efficiency in fund transfers.
Benefits of Using ACH Payments
| Benefit | Description |
|---|---|
| Cost Efficiency | ACH payments are generally more cost effective than traditional payment methods. Processing an ACH transaction typically costs between $0.26 and $0.50, whereas paper checks can cost between $2 and $4 or more per transaction.¹ Credit card processing fees often hover around 2% per transaction, making ACH a more economical choice, especially for high-value transactions.² |
| Convenience | ACH helps easily set up recurring payments, streamlining processes like payroll and vendor payments. This automation reduces administrative tasks and minimizes the risk of human error. ACH payments can even be processed in large batches, enhancing operational efficiency. |
| Security | Electronic ACH payments reduce the risks associated with handling paper checks, such as loss or theft during transit. ACH transactions are encrypted and processed through secure networks, providing a higher level of security. For even more peace of mind, payments can be tracked electronically using trace IDs, making it easier to detect and prevent fraud. |
| Improved Cash Flow Management | ACH payments offer predictable processing times, typically settling within one to three business days. This predictability is ideal for better financial planning and cash flow management. Automating recurring payments, such as rent, utilities, and payroll, can allow businesses to better forecast their expenses and manage liquidity more effectively. |
Final Thoughts
Chase's ACH payment services can enhance your business's financial operations by providing a secure, efficient, and cost-effective method for managing transactions. Once you get familiar with sending and receiving ACH payments, the associated costs, and the scope of domestic versus international capabilities, your business can take its payment processes to a whole new level.
Sources:
1.ACH Costs Survey |Nacha
2. Benefits of ACH Payments
3. ACH Services | Chase
4. Chase Business Checking |Chase
5. Wire Transfers | Chase
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
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