How to Accept ACH Payments From Customers

The Automated Clearing House (ACH) network transfers funds quickly and securely, making it ideal for business transactions. Service professionals and contractors can accept ACH payments online or in person and pay lower processing fees than if their clients paid by credit card. Whether you are invoicing customers or requesting payment by text, the ACH payment method fits into your current workflows.

Indeed, many financial institutions and payment service providers (PSPs) facilitate ACH payment acceptance. This guide explores how ACH works, the best ways to collect ACH payments, and how to start processing them. Discover which businesses benefit from accepting ACH payments and which vendors offer efficient solutions.

Should your business process ACH payments?

Yes, ACH payment acceptance can save business owners time and money. It’s a low-cost alternative to credit card processing and is more secure than paper checks. Many consumers prefer this method for its convenience when paying recurring bills and subscriptions. 

To decide if you want to accept ACH payments, consider these questions:

• Does your business process a high volume of invoices or paper checks?
• Are you a high-risk merchant who is unable to establish a credit card processing account?
• Do you sell subscriptions or memberships?
• Does your company handle monthly rental payments?
• Are you looking for ways to reduce credit card processing fees?
• Do you sell goods or services to other businesses?
• Does your target audience prefer cash or check over credit or debit?

If you answered yes to one or more of these questions, setting up ACH payments could benefit your business. In fact, the number of ACH transactions increases every year. 

The National Automated Clearing House Association (NACHA) reported that 35.2 billion electronic payments were processed over the ACH network in 2025. This is nearly a 5% increase from 2024. Same-day electronic payments grew 16.7% while business-to-business (B2B) volume rose nearly 10%. 

How do ACH payments work?

An ACH transaction is an electronic payment method that transfers funds from one bank account to another over the ACH network. NACHA sets the operating rules and guidelines. Examples of ACH payments include direct deposits for employee wages and recurring bill payments to utility companies or subscription providers. 

Here’s a quick overview of how ACH payment processing for a business works:

• The customer authorizes a transaction and provides their bank account information. Then, either the merchant or customer initiates the ACH transfer.
• The customer’s bank verifies fund availability and sends a payment file over the ACH network.
• The ACH operator, either the Federal Reserve or The Clearing House, sorts transactions, batches them, and routes files to the merchant’s bank.
• During settlement, funds move from the customer’s bank to the merchant’s bank.

[Read more: Types of Accounting Payment Term Strategies for Small Businesses]

What is the best way to take ACH payments?

Small businesses can receive ACH payments in two ways: an ACH credit (push method) or an ACH debit (pull method). ACH debit transfers are the best solution for most merchants processing one-time and recurring transactions. For occasional payments, you can receive an ACH credit transfer by providing your bank account and routing numbers to the customer.

Where and how you take ACH payments also varies. Software providers and third-party payment processors (TPPPs) offer software to collect and manage ACH transactions.

Depending on your setup and business model, you may accept ACH payments through:

• E-commerce platforms or business websites.
• Subscription software.
• Accounting or invoicing tools.
• Over the phone or in person using ACH authorization forms and virtual terminals.
• Client portals.
• Payment pages or text-to-pay.

How to accept ACH payments from customers

Small businesses collect ACH payments with a bank account and a financial institution or payment service provider that supports ACH. Check with your current credit card processor or bank to see if they offer ACH payment processing. 

Follow these steps to take ACH payments:

• Establish a business bank account. Since ACH transactions move funds between bank accounts, you must choose and open one before accepting ACH payments.
• Pick a payment processor. Look for a provider that supports multiple payment methods, including ACH, and sign an ACH origination agreement.
• Set up ACH payments. Follow your provider’s instructions for enabling ACH. You may need to integrate payments with your e-commerce site or invoicing software.
• Prepare authorization forms. Have physical and digital forms for authorizing one-time, card-on-file, and recurring ACH payments.

Once you've met these prerequisites, you can process ACH payments online or in person. It's simply a matter of choosing how to bill clients, entering the payment amount, getting their permission and banking details, and scheduling the transaction.

How to set up ACH authorizations and stay compliant

Small businesses must follow NACHA operating rules for creating compliant authorizations and retaining records. These standards cover ACH authorization forms, identity verification, account validation, and document retention. Failing to comply could increase your company’s ACH return rate, triggering a review and potential enforcement action, such as fines or suspension.

Stay compliant by understanding NACHA requirements for each authorization method your business uses. For example, merchants should use an authentication tool, like a third-party ID verification service, to verify online identities and must validate consumer accounts before the first transaction. Refer to NACHA’s account validation resource center for accepted methods.

Store the signed proof of authorization (POA) forms and related transaction records securely. For recurring telephone-initiated payments, you must also retain the audio recording. Keep these files for at least two years after the last ACH payment.  

[Read more: 10 Best Practices for Streamlining Payment Processing] 

Use NACHA-compliant ACH authorization forms

An ACH proof of authorization is a legally binding agreement that must include specific elements, such as the customer's banking details and the merchant's contact information. Many payment processors provide ACH and credit card authorization forms. You can also design your own document, as long as it meets NACHA requirements. 

At a minimum, NACHA-compliant authorization forms must:

• Use clear authorization language: State the form’s purpose, such as “I authorize (business name) to debit my account.”
• Collect banking information: The customer should select the account type (checking or savings) and provide their bank account and routing numbers.
• Provide transaction details: Forms should include the payment amount, frequency (e.g., one-time, monthly, or installment with an end date), and start date.
• Tell customers how to revoke authorization: Explain how to cancel an authorization and define the required notice period, such as 10 days before the due date.
• List company information: Make it easy to find contact details by including your business name, phone number, physical address, email address, and website.
• Have customers sign and date the form: Customers may sign a paper form in person or use identity-authentication methods online, such as a secure login or a digital signature.

How to reduce ACH returns, fraud risk, and reconciliation issues

Implement a multi-layered risk management process to protect your business from ACH fraud, bouncebacks, and reconciliation issues. This step isn’t optional, as NACHA’s new rules require all companies to have “risk-based processes and procedures” in place by June 20, 2026. 

Follow these tips and best practices to ensure compliance and reduce risks: 

• Set up multi-factor authentication (MFA) and role-based controls for employees who access ACH payment systems.
• Establish procedures for handling ACH cancellations, including confirming changes with customers, stopping debits, and documenting revocations.
• Improve online security by using a payment gateway or processor that monitors transactions and alerts your business to suspicious activity.
• Reduce ACH returns by communicating with customers at least seven to 10 days before changing the amount or date of recurring transactions.
• Ensure your company is Payment Card Industry (PCI) compliant by regularly updating your antivirus software and reviewing security settings.
• Evaluate risk-based processes regularly to ensure they align with current NACHA regulations and to fix problems after an ACH return or fraud incident.
• Integrate accounting software with ACH processing tools to match transactions to invoices automatically and catch issues early.

[Read more: Choosing the Right Payment Methods to Accept at Your E-Commerce Business]

Top vendors: ACH payment processors for invoices, subscriptions, and B2B payments

Find the right solution for your small business by comparing rates and features between the top ACH payment processors. Look for platforms that integrate with your accounting software and offer account verification and fraud prevention tools. 

The best credit card processing companies have user-friendly admin dashboards and support multiple payment methods, including ACH transfers. Here are a few platforms to consider:

Helcim: best selection of free ACH payment tools 

Helcim is a merchant service provider and payment processor with free tools for requesting funds, invoicing, and managing subscriptions. The range of ACH payment acceptance methods helps companies tailor their approach for different customer bases or income streams. 

• Ideal for: managing multiple types of ACH debit agreements.
• Payment tools: invoice, SMS, payment pages, and virtual terminal.
• ACH processing fees: 0.5% plus 25 cents per transaction, $6 cap.

BILL: best for high-volume B2B payments 

BILL is an online platform for managing accounts payable and receivable. It offers automation features for invoicing, tracking, and collecting B2B payments. You can customize invoice templates with fields relevant to your industry and set up recurring payment schedules. 

• Ideal for: processing B2B transactions and paying vendors.
• Payment tools: invoices via email or U.S. mail.
• ACH processing fees: starting at $49 monthly plus 59 cents per ACH payment.

Square: best for invoicing from a POS app

Square is a point-of-sale (POS) system and payment processor for startups, small retailers, and restaurants. The mobile POS app includes digital invoicing tools for requesting deposits and recurring payments. With a Square checking account, ACH bank transfers are free. 

• Ideal for: accepting ACH invoice payments online.
• Payment tools: invoicing via text, payment links, and email.
• ACH processing fees: 1% per transaction, $1 minimum fee. 

[Read more: What Is a Secure Payment System?] 

GoCardless: best for subscriptions and memberships

GoCardless specializes in bank-to-bank payment collection. It lets businesses create, edit, and pause ACH debit payment plans. The offline and digital authorization methods support a wide range of subscriptions and memberships, allowing customers to set up ACH transfers in person at a gym or online for virtual coaching sessions. 

• Ideal for: authorizing ACH subscription payment in-person, online, and over the phone.
• Payment tools: payment links, integrated checkout tools, and payment pages.
• ACH processing fees: starting at 0.5% plus five cents per transaction, $5 cap.

Getting paid: ACH payment time frames

The ACH network settles payments four times daily, with processing windows that span over 23 hours on weekdays. Merchants typically receive funds in their accounts within one to three business days. But, in some cases, it can take up to five days for your bank or payment processor to disperse funds. 

Some providers offer eligible merchants faster options, including same-day ACH, for an extra fee. NACHA estimated that “80% of all ACH payments, both credits and debits, settle in one banking day—or less (by regular and Same Day ACH).”

[Read more: What to Do if Your B2B Customers Don’t Pay]

Costs of accepting ACH payments

Many payment service providers charge around 1% per ACH payment. But ACH fee structures differ between processors. Some charge a percentage plus a flat fee per transaction, while others require a monthly subscription and charge a small, fixed fee per payment.

Processing companies usually cap prices so you aren't hit with super high expenses on large product or service payments. Regardless of the provider, ACH transfers always cost less than credit card processing rates.

Bank-to-bank transfers initiated by your client could be free or very low-cost. However, third-party payment processors improve the customer experience and give your business more control over the process. 

ACH payments vs. wire transfers

Wire transfers and ACH transactions fall under the umbrella of electronic funds transfer and are commonly used in B2B commerce. However, significant differences exist.

The Federal Reserve Wire Network, not NACHA's centralized network, routes wire transfers. Funds arrive the same or the next day, whereas ACH payments through a TPPP might take up to three days. You can receive wire transfers from international customers, but in most cases, you can't use ACH if your client doesn't have a U.S. bank account.

Still, you'll pay a hefty fee for a wire transfer versus an ACH payment. It's also less convenient, so ACH payments are generally used more for B2B payments than wire transfers, which are better for high-value transactions.

[Read more: Mastering Mobile Payments: Top Credit Card Payment Apps for Entrepreneurs] 

Benefits of ACH payments

Accepting ACH payments improves customer experiences while increasing operational efficiency. This payment method benefits businesses that handle paper checks, recurring payments, or invoices.

The advantages of ACH payments include the following:

• Low transaction fees: Compared to credit card processing, ACH payments save small businesses money. The savings add up to hundreds or even thousands of dollars each year.
• Better cash flow: Recurring billing and fast funding options keep income streams steady.
• Customer convenience: ACH payment acceptance tools support client preferences, enabling text-to-pay and mobile payments.
• Consistent payments: Credit and debit cards expire, whereas bank information changes only when clients close their accounts.
• Broad appeal across age groups: Many consumers are familiar with ACH transfers, making them easier to implement than cryptocurrency payments.

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