5 Benefits of Offering Preauthorized Payments

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Preauthorized payments are a form of payment automation where customers enable companies to withdraw funds for recurring payments directly in their account, typically via the EFT (electronic funds transfers) or ACH (Automated Clearing House) process. Preauthorized payments have been around for a while but have become more popular as the use of cash has declined, the 2016 Federal Reserve Payment study found that over 144 billion payments in the US were non-cash and they totaled over $170 trillion. The shift away from cash persists, 83% of American businesses leverage ACH/EFT payments.
Here are 5 reasons why you should too:
Convenience
Preauthorized EFT/ACH payments minimize the number of charges being paid in person by check, cash, debit, or credit. Customers no longer have to travel to and from offices to make payments improving customer service, while employees can work continuously on one task without interruptions from customers looking to make a payment. Preauthorized payments please owners and tenants because it adds simplicity to hectic bill payments saving both parties time.
On Time Payments
When customers authorize their property management company to take AHC/EFT payments, it virtually eliminates the possibility of late or missed payments because customers no longer have to remember their payment due dates. Instead of waiting for customers to issue a payment, property managers receive payments on their scheduled date without having to remind customers of missed payments or charge late fees. This helps to maintain cashflow and plan future maintenance and other spending decisions with greater accuracy.
Batch Processing
Property management companies that are……