Hello,
I am planning on selling land on terms. I would like to use Moon Clerk and Stripe to process payments and manage loans. I recently learned that ACH payments are the ideal way to accept recurring payments. I am a little confused about how ACH works compared to credit card payments. How do you guys manage ACH payments with the customer, particularly when someone pays late or misses a payment?
ACH is taking the payment directly from the borrower’s bank account, instead of paying through a credit card, which incurs another form of debt for the person paying. If you use ACH, I think you can also get around the usual restrictions that credit card payment gateways have against credit cards.
The problem I see with ACH is that it doesn’t come through for up to 5 days later. I accept it, and will mark it paid on time as long as I get notice of it on time, but I just don’t get it as quickly as with a credit card payment. Of course I like Zelle the best since it’s immediately. I haven’t had a problem with ACH though. The processing company doesn’t take as much on ACH as they do for Credit Card transfer fees cost, but it’s only a few cents difference.
Using ACH for recurring payments is a smart choice. It’s cost-effective, secure, and helps streamline cash flow. Just be mindful of the 1–3 day processing time and have a plan for handling late or failed payments.
That makes sense. Thank you! Do you have any tips for how to handle late or failed payments?