FAQs

Automated Clearing House (ACH) is a network that moves money electronically between bank accounts. If you accept ACH payments, your customers can pay you directly from their bank accounts—often used for things like recurring billing, invoices, or B2B transactions. Payments usually take 1–3 business days to process.

You might consider ACH if you’re looking for:

• An additional option that some customers prefer.
• A faster payment method versus waiting for checks to arrive.
• Lower transaction fees.
• Another way to process recurring or high-volume payments.
• Integration with your billing or accounting system.

Yes, they are. ACH payments are regulated by the National Automated Clearing House Association (NACHA) and typically include encryption and fraud monitoring. Customers receive notifications when funds are withdrawn and confirmations when transactions are complete. While ACH isn’t subject to Payment Card Industry Data Security Standard (PCI DSS) like credit cards, many platforms follow PCI-compliant practices to protect customer data. It’s a good idea to review the security features your provider offers to make sure they meet your needs.

To get started, you’ll need to work with a payment processor or gateway that supports ACH. The setup usually involves verifying your business bank account, enabling ACH in your payment platform, and collecting customer authorization, either digitally or on paper. You can also connect ACH to your invoicing or accounting software to automate payment processing and eliminate manual data entry, which reduces errors and speeds up reconciliation.

ACH fees vary depending on your provider. You might see:

• Flat fees per transaction (e.g., $0.25 – $1.50).
• Small percentage-based fees (e.g., 0.5% – 1%).
• Volume discounts or bundled pricing for recurring payments.

ACH payments usually settle within 1-3 business days. Some providers offer same-day ACH, which can speed up reconciliation but may come with additional fees or setup requirements. 

Yes, ACH works well for recurring billing. You can use it for:

• Memberships or subscriptions.
• Service retainers or installment plans.
• Automated billing cycles once you have customer authorization.

To process ACH payments, you’ll need:

• Their bank routing number.
• Their account number.
• Authorization to debit their account (either signed or digital).

Most payment platforms offer secure ways to collect and store this information in compliance with NACHA rules.

ACH is generally reliable, but there are a few things to keep in mind.

• Payments aren’t instant. They take 1-3 business days to clear.
• Transactions can fail due to insufficient funds or incorrect account details.
• Unlike credit cards, ACH doesn’t offer real-time authorization of funds availability.

It’s worth reviewing these factors to see if ACH fits your business model.

ACH can be a convenient option for merchant customers who prefer paying directly from their bank accounts. It is also a popular payment method for B2B invoice payments. It’s especially useful for recurring payments, and merchant customers may appreciate the simplicity. Whether it improves customer experience depends on your audience and how they prefer to pay.