Online payments are the crossroads for innovative products and old-school financial services. Bank accounts, checks, and cash have changed little over the years, whereas online networks and the products sold through ecommerce are quickly evolving.
Nutraceuticals are at the forefront of innovations in health and nutrition. In a recent review published in the British Journal of Clinical Pharmacology, researchers expressed the need for better definitions and a closer look at nutraceuticals, which they claimed had benefits beyond diet but before traditional drugs.
There’s growing demand for nutraceuticals across the world, as people learn of the health benefits of these special ingredients. Combined with borderless ecommerce, nutraceutical companies can spread awareness about their products further than ever before. However, these efforts to innovate in the healthcare industry are hamstrung by the country’s rigid payments infrastructure. Financial institutions and intermediaries consider the nutraceutical industry gray area between pharmaceuticals and food.
Considered “high risk,” by conventional financial institutions, nutraceutical companies have struggled to offer payment convenience to their customers while clamping down on chargebacks. In recent years a new solution has emerged for this industry - same day ach payments.
Payments through the Automated Clearing House (ACH) network have helped make payments more convenient. ACH offers the facility of echecks, which are digital versions of traditional checks. Payments are transacted directly from the customer’s bank account to the business merchant account. Electronics payments association NACHA has noted a steady rise in the number of payments completed through the system as more customers and businesses adopt the framework.
However, echeck payments through ACH could take a few days to be completed. This significant lag increased the risk for millions of businesses across the country. To resolve this, NACHA enabled same day ACH in 2016.
Same day ACH allows for faster transactions and increased security across the ACH network. The submission deadlines for same day ach are 10:30 AM ET and 2:45 PM ET, with settlement occurring at 1:00 PM and 5:00 PM, respectively.
For retailers selling nutraceuticals, same day ACH can help mitigate the risk of payments and increase sales. Customers accustomed to check payments find echecks and ach more intuitive, making them more willing to engage in transactions with businesses that offer this convenience.
Same day ach payments should significantly reduce the risk of a failed transaction, chargeback, fraud, or bounced check. By mitigating this risk, businesses can preserve their margins and improve profitability. Same day ach should also help nutraceutical retailers pay their suppliers on time and receive bulk orders with more assurance.
These benefits have helped the same day ach network gain traction in recent years. From its launch in September 2016 to April 2017, over 13 million credit transactions worth more than $17 billion were settled on the same day ach network. Every year, more businesses and customers join this safe and quick payments network.
Merchant account providers can help you join the ACH network and process echecks alongside debit and credit cards. These providers can help you integrate the payments network with your business so that your transactions are quicker and safer than ever before.
At Paynet Secure, we go a step further with integration. Our team offers a range of developer tools, industry-grade encryption, PCI-compliant payments gateways, and virtual terminals to augment your payments system.
Combining the ach network with these powerful merchant account tools should help you offer a seamless and secure payments experience for all your customers.
Think quicker and more secure payments can help your nutraceuticals business?
Visit us at www.paynetsecure.net or speak to our expert consultants today.