Help us to improve by providing some feedback on your experience today. Call some of your customers to make a personal pitch for using ACH. Ask your reps to explain and encourage ACH when they call on business customers and when customers call in their orders. When you onboard new customers, set that as an expectation while providing alternatives for any customers who resist. Join the thousands of people like you already growing their businesses and knowledge with our team of experts. We deliver timely updates, interesting insights, and exclusive promos to your inbox.

Obtain your payment details.

While this might sound similar to a debit card payment, the transaction is processed differently. ACH payments cost 0.80% for Stripe customers, with a $5.00 cap and no monthly fees or verification fees. For example, a $200.00 payment would cost a Stripe customer $1.60, and any payments above $625.00 would cost $5.00. This pricing model is favorable if you charge customers large amounts on a regular basis. Different payment processing providers and financial institutions will charge varying fees for businesses to use ACH transfers as a payment method with their customers.

What platforms let you accept ACH payments?

If you’re planning to use a third-party payment processor, you’ll need to choose an ACH processing provider. The simplest option may be to add ACH as a payment option with your current provider, although you may want to research costs before you choose this route. To receive an ACH payment, you need to provide your bank’s routing number and the account number for the checking or savings account you want the money deposited into. With some companies, you may also need to sign an ACH authorization form; your client should provide that if it’s required. ACH payments are electronic transfers from one bank account to another, almost exclusively within the U.S.

Your guide to accepting ACH payments

ACH payments are processed through a highly regulated, bank-to-bank network with multiple security protocols. ACH payments are a simple form of EFT, or electronic funds transfer. When a customer wishes to make a payment for goods or services, they can transfer the funds directly from their bank account to your business bank account. The funds are delivered via the ACH (Automated Clearing House) network for a quick and easy transfer process.

• When your small business accepts ACH payments, you offer customers an added degree of flexibility.
• ACH payments can transform your accounts receivable, replacing expensive credit card fees and slow paper checks with direct bank transfers.
• This happens when your customer changes financial institutions and forgets to tell you, which can disrupt your recurring billing cycle.
• When your bank receives funds from an ACH payment, it may hold the money for a short time before making it available.
• They must, for example, be located and authorized to transact in the United States and process payments with Braintree Direct.
• You pay a low flat rate or a flat percentage fee per transfer, which usually costs less than credit and debit cards, especially for high-ticket transactions.

Dharma Merchant Services: Best For Breadth Of ACH Options

For example, Square Accounting For Architects charges 2.9% plus 30 cents for online credit card payments, but 1% with a $1 per-transaction minimum fee for ACH payments. Similarly, Stripe charges 2.9% plus 30 cents for online credit card payments, but 0.8% for ACH payments, with a maximum ACH per-transaction charge of $5. ACH payments can be completed on the same day under ideal circumstances, but they might also take a couple of business days. The money won’t land in your account on weekends or federal holidays when the Federal Reserve system is closed. The National Automated Clearing House Association (NACHA) oversees ACH security requirements and compels businesses to take steps to protect their customers and themselves. It’s important to choose a payment processing partner that keeps your business and your customers safe.

• Most modern processors use secure, encrypted connections that verify your account instantly.
• If your paycheck is automatically split and deposited into two or more accounts when you get paid, that’s called “split deposit.” Split deposits also happen via the ACH network.
• When looking for an ACH payment provider, we’d suggest starting with your current merchant account or payment gateway provider.
• Stripe customers can initiate ACH Direct Debits as a payment method.
• Among other perks, they also receive a free coffee or fountain drink for every 80 gallons bought.
• It’s worth learning how to accept ACH payments so you can give customers one more payment option and — hopefully — capture the sale.

Paypal Business vs Wise Business (2025 Guide)

The ACH network is tightly regulated, connecting US financial institutions with many layers of security. There are clearly defined reasons for disputing ACH charges compared to credit card charges, which can be disputed for any reason. If you want to make more sales and simplify collecting payments, allow customers to choose the payment method that works best for them.