Accept ACH Payments

Why ACH Costs Less Than Credit Cards

ACH transactions bypass the card networks entirely. There is no interchange fee, no assessment fee, and no card brand markup. The result is processing costs between 0.5% and 1.0% per transaction, or a flat fee of $0.25 to $1.50.

For a business processing $100,000 per month, switching recurring payments from credit cards to ACH can save $1,500 to $2,000 monthly. That adds up to over $20,000 per year in reduced processing costs.

ACH Payment Types

ACH supports two main transaction types: ACH debit (pulling funds from a customer's account) and ACH credit (pushing funds to a customer's account for refunds or payouts).

• ACH Debit: customer authorizes you to pull funds from their checking or savings account
• ACH Credit: you initiate a payment to the customer's bank account
• Same-Day ACH: funds settle within the same business day for an additional fee
• Next-Day ACH: standard settlement in one business day

Most businesses use ACH debit for collecting payments and ACH credit for vendor payouts or refunds.

ACH for Recurring Billing

ACH is the preferred method for recurring billing because of lower fees and fewer declines. Credit cards expire and get reissued. Bank accounts remain stable for years, which means lower involuntary churn for subscription businesses.

Set up autopay with ACH and your failed payment rate drops from the typical 5-10% with credit cards to under 2% with bank transfers.

Getting Started with ACH Processing

You need a business bank account, an EIN, and authorization from your customers (written, electronic, or recorded verbal). Our partner network provides the ACH gateway, NACHA-compliant authorization forms, and reporting dashboard.

Frequently Asked Questions

How much does ACH payment processing cost?

ACH processing typically costs 0.5% to 1.0% per transaction or a flat fee of $0.25 to $1.50. This is significantly cheaper than credit card processing rates of 2.5% to 3.5%.

How long do ACH payments take to process?

Standard ACH takes 1-3 business days. Same-day ACH is available for an additional fee and settles within the same business day if submitted before the cutoff time.

Can customers dispute ACH payments?

Yes. Consumers have 60 days to dispute unauthorized ACH debits. Businesses have 2 business days. Proper authorization documentation protects you from disputes.

Is ACH more secure than credit cards?

ACH uses bank-level encryption and requires explicit customer authorization. There are no card numbers to steal, which eliminates card-not-present fraud risk entirely.

What is the difference between ACH and wire transfers?

ACH is batch-processed and low-cost ($0.25-$1.50 per transaction). Wire transfers are real-time and expensive ($15-$30 per transfer). ACH is better for recurring and routine payments.