The Neat Company has eliminated the standard 1% fee for ACH transactions, a move the company said makes it unique among small business financial platforms.
According to a Tuesday (Aug. 16) news release, this means the company’s platform “essentially becomes free” to small businesses that have $29,000 of invoices paid through bank transfer each year.
“Anything beyond that is money saved for Neat subscribers,” the Philadelphia company said.
According to Neat, small businesses are routinely charged a 1% ACH fee for transactions, which can quickly add up.
“As a small business owner myself, I always sought to maximize value from the services I used and from every dollar that came into my hands,” said Garrett Baird, Neat’s president and CEO. “Neat customers deserve those same advantages.”
Bard said that customers will be able to receive electronic payments for the invoices they issue through the Neat system, and pay for their subscriptions with the savings they’ll realize by avoiding ACH fees.
Neat said customers can find their potential savings by calculating the percentage of their receivables currently paid via bank transfer and then determining what 1% of that number is.
The company’s Neat financial management platform features bookkeeping, invoicing and document management.
“We are serving both the COVID-emergent side hustles and businesses that have existed for many years,” Baird told PYMNTS last year, adding that the cloud-based and mobile-first capability lets small businesses organize records and glean insights on the go with a tablet or mobile phone.
“There has been a COVID boom of new business starts with a new generation who are mobile-savvy,” he said at the time.