What You Need to Know About Accepting ACH Payments

With regards to accepting payments, companies and customers like having choices. Greater payment options imply more chances to do business, and traders particularly like payment options that don’t cost much to process. One such installment choice we haven’t broadly expounded on before is ACH payments, or Automated Clearinghouse payments.

What is ACH?

  • Initially began as a framework to replace paper checks, ACH enables organizations to get an electronic payment specifically from a purchaser’s checking account.
  • ACH payments are additionally usually known as e-checks.
  • This sort of electronic fund transfer is usually utilized for direct deposit payments from businesses, and in addition regularly scheduled payments to service providers, for example, utilities.
  • ACH payments are progressively utilized for online payments and point of-purchase payments, and in addition B2B (business-to-business) and P2P (individual to-individual) payments

How is ACH different from debit and credit transactions?

ACH sidesteps the card systems, and in this manner bypassesinterchange and assessment fees. This, for the most part, makes ACH far more affordable than card payments.

While both debit transactions and ACH draw cash from a checking account, debit transactions are prepared through card networks, and subsequently are inclined to the same sort of expenses from credit cards.

How much does it cost to process ACH payments?

The cost to process ACH payments relies upon your merchant account provider, or whichever entity you use to process ACH payments.

Some ACH processors charge a flat rate, normally extending from $0.25 to $0.75 per transaction. Others charge a flatpercentagefee, running from 0.5% to 1%. For traders with a bigger transaction estimate, the per-transaction expense (not percentage) is for the most part the less expensive alternative. A few suppliers will likewise charge an addedmonthly expense, which differs.

How can I accept ACH?

You can process ACH payments/e-checks utilizing a merchant account provider or a different entity — for instance, a bank or an independent ACH processor.

How are ACH payments processed?

The three main ways in which your business can process checking account payments via ACH are as follows:

  • Check scanner
  • Virtual terminal
  • Website payments


In closing, regardless of whether you basically do business on the web or face to face, you might need to consider accepting ACH payments, which electronically transfers funds from a client’s checking account. ACH payments cost less to process than credit or platinum card transfers and are simpler to process than conventional paper checks.


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