{"id":4554,"date":"2016-05-11T13:14:59","date_gmt":"2016-05-11T20:14:59","guid":{"rendered":"https:\/\/www.rentecdirect.com\/blog\/?p=4554"},"modified":"2022-06-16T10:37:34","modified_gmt":"2022-06-16T17:37:34","slug":"ach-vs-checks-better","status":"publish","type":"post","link":"https:\/\/www.rentecdirect.com\/blog\/ach-vs-checks-better\/","title":{"rendered":"ACH vs. Checks – Which is better?"},"content":{"rendered":"

\"ACHThe most common rent payment options for renters are paper checks and online payments made via ACH. \u00a0Online payment options have become a popular choice for property managers and landlords who want to offer renters convenient ways to pay their monthly rent. <\/span><\/p>\n

What are ACH payments?<\/h2>\n

ACH transactions are typically faster to clear and far more reliable than paper checks; however, it may not appear that way from a bank statement without knowing more about how the system works. \u00a0Especially in this day of online banking, one can see pending as well as completed transactions into your bank account.<\/p>\n

ACH payments are processed through the same system that utility companies and banks use to automatically pay recurring bills. This system is paperless, entirely electronic and often more secure than writing a paper check.<\/p>\n

An ACH transaction will withdraw from a tenant\u2019s account either the same, or the following business day it is posted. \u00a0Just like a check has to clear, so does the ACH transaction. \u00a0Your merchant provider and affiliated bank will hold the ACH funds until they clear.<\/p>\n

Most all errors (like bank errors and NSF) return within 3 business days. \u00a0If an error is returned, you are notified at the time we receive it and no funds transfer. \u00a0In most cases a property manager is notified about NSF or any other error 24-72 hours after the transaction, which can be up to 2 weeks sooner than a paper check. \u00a0Provided the funds clear, the funds are then re-transmitted (deposited) into the property manager\u2019s account.<\/p>\n

ACH vs. Checks – Which is better?<\/h2>\n

A common question regarding ACH versus checks is, \u201dIf I deposit a check, it shows up the same day in my account, why is ACH better?\u201d<\/p>\n

The idea that your money is available instantly when you deposit a check is a common misconception about how banks process paper checks. \u00a0Depending on your bank, it may look like a check\u2019s amount are added to your bank account\u2019s available balance the same day you deposit the check. In actuality, the bank is fronting the money, trusting the check is good and holding you responsible for it if it is not. Sometimes the bank does not find out if the check is good for up to 2-3 weeks after the check was deposited.<\/p>\n

If you deposit a bad check, the bank will withdraw the funds from your account. Think about what would happen if you deposited a rent check and used those fund to immediately pay the mortgage – if the check bounces 2 weeks later, your mortgage check would then bounce and your overdraft fees would start to add up.<\/span><\/p>\n

Here\u2019s a few additional facts about the <\/span>benefits of ACH<\/span><\/a> over paper checks.<\/span><\/p>\n