How to accept ACH payments on your website

We’d love to hear how this piece may have helped you improve your ACH payments. Speak with an ACH payment expert to learn more and get started today. Merchant service providers maintain and monitor files to help protect you from fraud. QuickBooks automatically reconciles your books for every payment you accept.

Unlike ACH debit, ACH credit is simply the transferring of funds from one account to another, rather than a payment processing. This can be another financial institution, or a social security account, retirement fund, etc. In rare cases, ACH credit can also be used business-to-business, like in the event that there’s some kind of transfer of funds as in a merger or purchase. ACH debit is commonly used for online bill payments, direct payment for vendors, or various other types of transactions.

When to Not Use ACH

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Find the Right Payment Processing Solution for You

Here are the benefits and drawbacks of using ACH payments in your small business. Direct Deposit and Direct Payment can help businesses save time and cut costs. And, for nonprofits and religious organizations, Direct Payment helps manage and increase automatic donations. Split Deposit allows your employees to direct a fixed amount or percentage of their pay into a savings or investment account each pay period. Registration information will be updated within 45 days of any change to the information previously provided. Merchant e-Solutions was drowning in paperwork and inefficiency, trying to manage the 400+ invoices it was receiving each month.

Your business could also benefit from setting up automated clearing house payments, especially if you offer monthly subscription plans or other recurring transactions. We’ll go over the ACH basics below and show you the steps to get you started. ACH payments could be an option for anyone with a bank account who can’t or won’t get a credit card. About 1 in 6 U.S. adults (17%) doesn’t have a credit card, but only 1 in 20 (5%) doesn’t have a bank account, according to the Federal Reserve.

What are ACH Payments?

After establishing electronic payment options for your customers via credit and debit card payments, you need to also explore the possibility of accepting ACH payments. These are electronic payments that are carried out through the Automated Clearing House , an extensive network of nearly every bank in the United States. QuickBooks Payments offers a complete payment processing solution. Your business can take payments from customers in a variety of ways—from ACH bank payments and eChecks, to credit cards including Visa, MasterCard, Discover and American Express.

• QuickBooks Payments offers a complete payment processing solution.
• Companies often use them to pay employees by direct deposit, or to take regular payments from customers, such as monthly mortgage payments or utility bills.
• BofA Securities, Inc. and Merrill Lynch Professional Clearing Corp. are registered as futures commission merchants with the CFTC and are members of the NFA.
• The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners.

ACH payments offer some of the lowest processing fees of any form of payment, beating out wire transfers and even most credit card payments. If you use a provider with a flat rate, you’ll also have more predictable costs than the fluctuating percentage fees that come from processing credit cards. It’s the financial network that electronically moves money and information from one bank to another. ACH payments are a way to electronically transfer money from one financial institution to another without the need for wire transfers, paper checks, cash, or credit/debit cards.

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Nacha rules call for accept ach payments debits to be processed by the next business day, and ACH credits in 1-2 business days. That said, the timeline depends on what time of day your batch was sent. The receiving bank may also hold the funds as long as they’re allowed for security reasons. In fact, 2021 saw 29.1 billion ACH payments covering $72.6 trillion of value, according to data from Nacha. That works out to around 87 transactions for every person in America. ACH payments touch our lives in so many ways that customers now expect the convenience that they offer.

International transactions make up fewer than 0.5% of transactions on the network. Here’s what you need to know about accepting ACH payments at your business. We believe everyone should be able to make financial decisions with confidence.

Types of ACH Payment

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