Most people now feel comfortable paying by debit or credit card. However, the cost of processing these cards is high. Paying bills by check is also a hassle. ACH payments can be a better option. These are cost-effective and safer. So, many businesses today are going for ACH payments. 

What is ACH?

Automated Clearing House or ACH is an electronic network that directs the transfer of funds between two bank accounts. An example of ACH payment is the direct deposit program. The employer transfers funds directly to the employee’s account without providing a paper paycheck.

Reasons to accept ACH payments

There are many reasons why businesses must accept ACH payments over a check or other methods. This payment option has lots of features that make it better than the other payment methods. Here we are going to discuss some of the major benefits of ACH payment.

Low transaction cost

One of the main reasons why businesses accept ACH is that it has low processing fees compared to credit cards or checks. As the funds are transferred between two bank accounts through a clearing house the transaction cost is low.

Fast processing

The settlement time for ACH payment is three to four business days. It is better than checks that take five to six business days. However, soon you may expect to have a same-day ACH transfer. With fast processing, your business will have improved workflow efficiency, faster access to cash, and flexibility.


Checks are vulnerable to fraudulent activities. The checks may get misplaced or someone may copy the signature. People often make mistakes when writing on checks, so money can get transferred to other accounts or you may put down the wrong amount, so receive less money. ACH transfers eliminate these things. Two-way micro validation confirms the authenticity of the two parties before the money is transferred through ACH payment. 


ACH payments are simple and easy. You don’t need to carry bulky checkbooks anymore. You can provide customers the flexibility to choose one-time or recurring payments. You don’t have to run between banks and deal with paper invoices anymore. So, you will save money on postage, transportation, and other costs. 

Recurring billing

If your business follows a subscription-based model, then you should accept ACH payment. In this type of model, businesses regularly bill their customers. The processing costs become high and customers may often forget to pay their bills. So, you have to deal with cash flow and unpaid invoice issues. 

With ACH payment you will save a lot of money in the long run on transaction fees. As more transactions will take place the more money you will save. The recurring billing feature is very useful as you don’t have to remember every time to pay your bills. It is also a very secure method of payment. It is also very convenient to pay this way. So, ACH payment is a better option than checks and debit or credit cards for making payments.