We've more or less tackled the topic of BANK WIRE TRANSFERS... now let's tackle the topic of DIRECT BANK DEPOSITS.

What is a Direct Bank Deposit?

1) A buyer directly pays cash/check and deposits the funds to the sellers bank account (let us presume it is based in the USA) by going to a branch of the same bank.

2) If the buyer happens to have the same type of Bank (let's presume it is Bank of America), the buyer can send funds online to the seller.

Questions:

1) What information does the seller need to give the buyer?
2) Is it safe for the seller?

We want to hear your experiences and feedback.

Thanks!

I use ACH. It's essentially "Bill Pay" and extremely secure - much more so than having checks floating around in snail mail.

The only information your buyer needs to process a payment is your corporate name, address and phone number. No one exchanges sensitive information.

You can accept payments from any bank's online bill pay, and sites, such as MyCheckFree will process customer payments.

Payments are received within 72 business hours, though it typically takes about 48. My policy is to ship within 72 hrs after the payment is processed, a precautionary measure on my part.

In addition to being very secure, with my banking institution, it's cost free for both seller and buyer. I asked *why* and my account rep explained that a paper check transaction costs about $1.00 to complete. An electronic transaction costs about 3 cents to complete. The bank saves $$ every time we utilize this service.

I've used the service for a couple of years, processing approximately 40 flawless transactions. BTW, ACH is an accepted method of payment at eBay.

Thank you LurkeyLou for the very informative post.

And for those that do not know what ACH is, please go here

If it is safe and virtually cost-free, why isn't it being used more often?

Is it because most buyers buy things on "Credit".

Bank Deposits are usually real funds and not Credit funds.

i've done this once, with a buyer in alaska. she paid fer all her auction winnings this way & actually suggested it to me, so i include the idea in my listings now. however, i didnt find that it took any less time than sending a check!


another buyer wanted to pay this way, but she felt her bank required too much info--merchant #, etc. i didnt hafta provide any of that kind of info the first time i used this method.

Y/W, diesel. Glad to help.

nopaypal, I think the difference in my experiences and others is that the bank account I use for ACH is actually my corporate account. My banking institution required Articles of Incorporation, EIN, State and Local Registrations to establish the account.

This information is embedded within ACH system and accessible by all bill pay systems. All payments to my business name, address and telephone number are routed to my account without the need for account or merchant numbers. Some banks, when setting up the customer's online bill pay will ask for an account number. However, the bank can and does establish pay thru without an account number.

Off the top of my head, I've received, payments from Wacchovia, Wells Fargo and Bank of America with only name/address/phone number infos.

Increasingly, buyers are funding with checking as opposed to credit cards. Partially due to becoming more comfortable with online purchasing.

In addition, there's a trend that's going to drive ACH as a preferred payment method. The sad fact is, millions of home owners are going into foreclosure. The numbers are project to double by end of Q4 2007. Credit will be denied to the vast majority of these people. They're going to find a way to provide Christmas for their families. Cash will reign supreme as middle America tightens it's collective belt.

Between increasing competition and economic trends, I'm preparing for the tougher challenge that Q4 '07 is bound to present. ACH will address customer needs and increase my profitability by a few points. I need that 3% + 30 cents PayPal charges a helluvalot more than eBay/PayPal does!!

Jeesh. Didn't mean to be so long winded. Gotta' get back to work...y'all have a good one!