Comparing ACH debits to paper checks, which statement is true?

ACH debits are generally considered to be cheaper than issuing paper checks due to the lower transaction costs associated with electronic processing. When a business opts for ACH debits, it avoids many of the costs linked with handling paper checks, such as printing, mailing, and potential check handling fees from banks. In addition, electronic payments can streamline the payment process and reduce administrative burdens, allowing for easier reconciliation and faster payment cycles.

This cost efficiency is significant in accounts receivable practices, as businesses seek to optimize their cash flow management while minimizing expenses associated with payment processing. In contrast, the other statements provided do not reflect the typical advantages or comparisons accurately, as ACH debits generally do not eliminate all bank charges, may have some costs associated with them, and are usually processed faster than paper checks, which can take several days to clear.