In today’s world of payroll, choosing the right ACH processor
can be a time consuming and tedious task. If your company is in growth mode,
here are 3 questions to ask your sales representative before making a decision:
1. Do you
have dollar volume limitations? - Many banks and third party ACH processors
have certain guidelines in place to help mitigate risk. One of the most common stipulations
a bank or other third party processors will impose is a daily dollar volume
limitation. Whereby, the Service Bureau has a cap on the dollars that can be
processed on a daily basis. As you are in growth mode, whether by acquisition
or traditional sales, the dollar volume you will process as a result of
bringing on new business will increase as well - resulting in hitting a daily
threshold.
2. How well
do you know my industry? - Many payroll service bureaus seek out ACH
processors who are the least expensive. From time to time you will need assistance
or have questions regarding the processing of your transactions. As the
processing of ACH transactions is a vital part of the services a payroll company
provides, you should have a partner that has experts on board that can answer
any and all questions you may have. To avoid being transferred from department
to department, ask up front, how well do you know the payroll industry? Do you
have a department or team of people that are solely dedicated to assisting your
ACH clients when there is an issue or question?
3. Are you
bonded and insured? - We can all agree that the payroll industry is an
extremely competitive market. Not only must service bureaus strive to maintain
their competitive edge in the marketplace by staying up to date with the latest
technology, but they must also give end user clients a sense of security. A bond
will do just that. Partnering with an ACH processor that has a crime bond should
be a requirement as you complete your due diligence process. A crime bond will
protect client funds in the event the third party processor creates some sort
of felonious activity while the client funds are in their possession. With a
crime bond, you can promote and market that you’re bonded. This will help to drive
more business and place the service bureau on an even playing field amongst
much larger payroll companies. Keep in mind that ACH transactions processed by banking
institutions are not insured through the FDIC.
What other questions would you add to this list?
