ACH is administered by the National Automated Clearing House Association (NACHA), an independent organization owned by its member institutions (banks, credit unions and payment processors). Wave is an online accounting, invoicing, payments and payroll platform for small businesses and freelancers. When you send an invoice, customers can choose to pay via credit or debit card or ACH transfer directly through the platform.
High-risk businesses can greatly benefit from alternative payment methods and bank-to-bank transfers in particular. These are direct payments between bank accounts, without intermediaries. They are also different from payments using other networks, such as Visa or Mastercard. Convenience is one of the primary benefits of adding ACH to your list of accepted payments. In the digital age, offering digital payment options is standard for most industries. For many customers, having online and automated billing is a big selling point.
Automate payment collection and reduce transaction fees with ACH Debit.
ACH payments typically take between one to four days to process, but Nacha cites that 80% of ACH payments are processed in one business day. Nacha also offers a Same Day ACH processing window, allowing payments to be transferred in as little as two hours. Its key differentiator is the free card reader it provides for processing in-person payments. Square charges a 1% fee (with a minimum of $1 per transaction) for ACH transactions and promises funds in three to five business days. ACH payments tend to incur lower fees than credit cards or paper checks.
If you have a business checking account, you can already accept ACH payments through your bank. Alternatively, you can register with a third-party payment processor (TPPP) to accept payments faster in exchange for a small fee. If your bank account works with the platform, it’s a great way to get fee-free, instant direct deposit payments from individual clients just by sharing your username or email address. If you’re being paid by a company as a vendor through a platform such as Gusto or Bill.com, it might cost you nothing to accept an ACH payment. Companies typically pay a subscription fee to use their payment processor, which covers ACH transaction fees.
The 9 Best ACH Companies
For a business owner, paying your employees by direct deposit is another example of using ACH payments. In essence, each ACH deposit and credit functions as an electronic “check.” Your business could also benefit from setting up automated clearing house (ACH) payments, especially if you offer monthly subscription plans or other recurring transactions.
Customers in the United States using Clio Payments can accept eCheck payments using a payment plan. The saying “time is money” seems to find fresh meaning when we think of the opportunities for today’s businesses when it comes to payment accepting ach payments options. Most payment processors will reverse the charges if there’s fraud or a mistake was made. Business to business ACH payments are a straightforward process that require very little work for both the sender and the recipient.
What are ACH payments used for?
ACH payments are a popular, low-cost way of moving money across US bank accounts. If you live in America, it’s likely you’ll have used ACH before, as they’re quite popular for bill payments and direct deposits. Unlike wire transfers, which often require you to pay a fee per transaction, there’s generally no fee to send or receive payments via ACH transfers. Think of all the time and money you save by not having to go to the bank to deposit a paycheck. And when you use ACH for online bill payments, you avoid the need to buy stamps and envelopes. Stripe customers can initiate ACH Direct Debits as a payment method.