The neat society eliminated the standard 1% fee for ACH transactions, a move the company says makes it unique among small business financial platforms.
According to a Tuesday (August 16) Press releasethat means the company’s platform is “essentially becoming free” for small businesses that have $29,000 in invoices paid by wire transfer each year.
“Anything above that is money saved for Neat subscribers,” the Philadelphia-based company said.
According to Neat, small businesses are routinely charged 1% ACH fees for transactions, which can add up quickly.
“As a small business owner, I always sought to maximize the value of the services I used and every dollar that came to me,” said Garrett Baird, President and CEO of Neat. “Cared-for customers deserve those same benefits.”
Bard said customers will be able to receive electronic payments for bills they issue through the Neat system and pay for their subscriptions with the savings they realize from avoiding ACH fees.
Neat says customers can find their potential savings by calculating what percentage of their receivables are currently being paid by wire transfer, then determining what 1% of that number is.
Related: COVID-era SMB boom spurs company expansion into accounting and invoicing
PYMNTS spoke to Baird last year after The Neat Company launched NeatBooks and NeatInvoices, a pair of tools designed to help small businesses streamline invoicing and make digital payments easier.
“We serve both side hustle related to the emergence of COVID and businesses that have been around for many years,” Baird told PYMNTS, adding that the cloud-based and mobile-first capability empowers small businesses organize folders and glean information on the go with a tablet. or cell phone.
“There has been a COVID boom of new business start-ups with a new generation that is mobile-savvy,” he said.