Should Your Business Accept ACH Payments?
ACH — the Automated Clearing House network — is the electronic system that powers direct bank-to-bank transfers in the United States. It's how payroll is deposited, how most utility bills are paid, and how millions of B2B invoices are settled every day. For businesses that qualify, accepting ACH payments instead of — or in addition to — credit cards can meaningfully reduce payment processing costs. Here's what to know.
PCI Consulting Group offers merchant services for small and mid-size businesses — payment processing setup, statement analysis, and rate optimization.
How ACH payments work
When a customer pays via ACH, they provide their bank routing number and account number — either directly or through a secure payment form. The funds are pulled from their account and deposited into yours through the ACH network, typically settling in 1–3 business days (same-day ACH is available for an additional fee).
Unlike card transactions, ACH transfers don't go through Visa or Mastercard — they go bank-to-bank through the Federal Reserve or the Electronic Payments Network. That means no interchange fees, no card network assessments, and no per-transaction markups from a card brand. The cost is essentially just the processor's fee for facilitating the transfer.
The cost difference
This is where ACH becomes compelling for the right businesses:
| Payment Type | Typical Cost | On a $5,000 Invoice |
|---|---|---|
| Credit card (cost-plus) | ~2.2% + $0.10 | ~$110 |
| Business credit card | ~2.5% + $0.10 | ~$125 |
| ACH debit | $0.25–$1.50 flat or 0.5–0.75% | $2.50–$37.50 |
For a business invoicing $50,000/month, the difference between ACH and card processing can be $1,000–$1,200/month in fees. That's not a rounding error.
Where ACH makes the most sense
- B2B businesses invoicing other companies — most business clients are comfortable with ACH and often prefer it
- Recurring billing and subscriptions — set it and forget it once authorization is collected
- High-ticket transactions — the savings on a single $10,000 payment can be $200+ compared to card
- Professional services, consulting, law firms, and accounting practices
- Businesses with clients they have an established relationship with — lower risk of disputes than one-time card transactions
Where ACH doesn't fit
- Retail environments where customers expect card acceptance at the point of sale
- Transactions where the customer needs immediate purchase confirmation tied to a card reward program
- Situations where 1–3 day settlement creates a cash flow problem
- Consumer-facing e-commerce where most customers want to pay by card
A note on ACH returns
One downside of ACH compared to card payments: disputes work differently. A card chargeback typically gives you a window to respond and present evidence. An ACH return — initiated when a customer claims an unauthorized transaction or there are insufficient funds — can result in the transaction reversing before you have a chance to contest it. Having written authorization from customers before running ACH charges is critical, both for dispute protection and for compliance with NACHA rules.
Adding ACH alongside card acceptance
Most businesses don't replace card acceptance with ACH — they add it as an option. Giving clients the choice to pay by card or bank transfer lets each client use what works for them while giving your business the savings when clients choose ACH. PCI Consulting Group can set up ACH acceptance alongside your existing card processing and help you structure the payment options in a way that encourages clients to use the lower-cost method where appropriate.
More on Merchant Services
Interested in adding ACH to your payment options?
We'll walk you through setup, costs, and how to integrate it with your current processing — and show you what the savings look like for your volume.
Talk to us