How to Accept ACH Payments: A Guide for Business Owners

According to Nacha, ACH transactions are limited to $100K per day, which was recently increased from the previous $25K limit. For many small businesses, this transaction limit won’t compromise operations. It may become problematic for larger companies running payroll or transferring funds in high volume, however. If you’re considering setting up business to business ACH, Routable is an easy way to get started. We support all ACH payment speeds, and you’re automatically set up to send ACH payments when you register for a Routable account.

ACH payments go through a clearing house in batches, and there can be a 1-3 day delay before funds are actually posted. If your business needs immediate transfers, ACH may not be the best option for you. But if your transfer requirements are more relaxed or you have time to plan ahead, ACH can be a cost-effective and convenient route. The Automated Clearing House (ACH) network makes ACH payments possible. The ACH network is a system that facilitates electronic funds transfers (EFT) within the U.S.

Why should I consider offering ACH payments?

This rule is in accordance with Federal Reserve Board Regulation D. In this guide, we’re taking an up-close look at ACH payments and how they work. Plus, we’ll discuss the benefits and drawbacks of ACH and answer some FAQs.

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The Best ACH Payment Processing of 2024

If you already have a good merchant account provider, you can start your ACH processing search here. When bundled with credit card processing and other merchant services, you may get a better deal on ACH processing fees. Additionally, accepting ACH payments allows your business to take credit and debit cards because these transactions occur over the ACH network.

ACH payments are electronic transfers sent through a bank, credit union or TPPP (often a credit card processor). You can also use ACH to pull funds from a customer if they accepting ach payments provide their payment account details. It’s a centralized payment processing network used by banks, credit unions, and other institutions to send and receive money.

Small Business Resources

Nacha views ACH payments as secure because data is handled electronically and transactions pass through far fewer hands compared to paper checks. Today’s customers, regardless of industry, expect convenience and flexibility when interacting with businesses. In fact, the 2021 Legal Trends Report also revealed that over 60% of clients prefer electronic payment options. Accepting ACH payments gives clients more options to pay, which can enhance their overall experience with your business. The better the client experience, the better chances you have of repeat business, positive word of mouth, and referrals.

• Here are the best ACH payment processing solutions for small businesses in 2024.
• ACH payments can be used to move money from one account to another at the same bank or between two separate banks.
• We also support slower and faster ACH processing times, along with the ability to set up security deposits to help reduce the risk for businesses that need faster payouts.
• For a business owner, paying your employees by direct deposit is another example of using ACH payments.
• They must, for example, be located and authorized to transact in the United States and process payments with Braintree Direct.

ACH transfers are either debit transactions, where money is pulled from an account or credit transactions where funds are pushed into an account. If you’re not currently processing credit card sales, you’ll want to choose one of the best point-of-sale (POS) systems that will also allow you to create a second account for ACH transactions. As a consumer, automatic monthly payments that come out of your bank account for utility bills or a mortgage payment are ACH payments. Wise is not a bank, but a Money Services Business (MSB) provider and a smart alternative to banks.

ACH payment is the system that makes direct deposit a payment option for businesses. When you make a direct deposit to your employees, you’re using ACH processing to do it. The Office of the Comptroller of the Currency advises banks and service providers in the ACH network to minimize risk with strong security systems. When selecting a bank to process ACH transfers for your business, make sure to do your research to find a reputable provider. ACH payments for businesses also make things easier on your accounting department so they can track payments more efficiently. There’s no need to account in your books for paper checks that have been mailed but not cashed, for example.

ACH debit payments are processed three times during a business day. If you submit your ACH file after the cut-off time, it’ll be processed on the following business day. And even if they do, they’re still slower compared to instant card transactions. Your bank will then send ACH payment instructions to your customer’s bank when the payment is due. Your customer’s bank will pull the funds, sending them to your account.