Collect payments straight from the bank with ACH

ACH lets you collect payment straight from a customer bank account instead of a card. ACH stands for Automated Clearing House, the network that moves money between US banks in batches. It is the same rail behind direct deposit and most autopay bills. For large invoices and recurring charges, it can cost a fraction of what a card would, because there is no percentage-of-volume interchange riding on top.

How do ACH payments work?

With ACH, the customer gives you their bank routing and account number, or authorizes it once, and you request the funds through the ACH network. The request goes into a batch, the customer bank approves it, and the money moves from their account to yours. No card, no card network, no interchange. Because it runs on bank rails instead of Visa or Mastercard, the cost structure is completely different.

• One-time pull: the customer authorizes a single payment, useful for a large invoice.
• Recurring pull: they authorize an ongoing schedule, which is how memberships, rent, and retainers get paid without anyone re-entering a card.
• Authorization is required every time. You need clear permission from the account holder before you debit, and you have to keep a record of it.

Why is ACH cheaper than a card for big invoices?

ACH is cheaper on large invoices because its cost does not scale with the dollar amount the way card interchange does. A card charges a percentage of the sale, so a 5,000 dollar card payment can carry 90 dollars or more in interchange alone. An ACH transfer of the same 5,000 dollars typically costs a small flat fee, because the bank rail does not take a cut of the amount. The bigger the ticket, the wider that gap gets.

On a big recurring invoice, the cheapest thing you can do is move it off cards entirely and onto ACH. A percentage of a large number is always going to beat a flat fee, for the customer bank, not for you.

How long do ACH payments take to clear?

ACH is not instant. A standard ACH payment usually settles in one to three business days, because it moves in scheduled batches rather than in real time. Same-day ACH exists for eligible transactions and speeds that up, but it is still not the second-by-second confirmation you get from a card tap. That timing is the tradeoff you make for the lower cost, and for many invoices it does not matter at all.

The other timing wrinkle is returns. An ACH pull can bounce after the fact if the account lacks funds or the customer disputes it, similar to a check clearing. Cards decline at the moment of sale; ACH can come back a few days later. For an unknown one-time customer that is a reason to wait for funds to settle before you ship. For a known, recurring client it is rarely an issue.

Who should use ACH?

ACH fits businesses with large tickets, recurring billing, or slow-paying B2B customers. Think contractors invoicing five figures, a gym billing monthly dues, a wholesaler on net-30 terms, a landlord collecting rent. For a coffee shop taking five dollar sales from walk-ins, ACH is the wrong tool; the customer wants to tap and leave. Match the rail to the sale.

• Great fit: recurring memberships, retainers, rent, tuition, and large B2B invoices where a card percentage would sting.
• Poor fit: small, fast, in-person retail sales where speed and a tap matter more than shaving cost.
• Worth offering both: many businesses take cards for small or urgent payments and ACH for the big recurring ones.

One note on cost. Because ACH is priced as a small flat fee rather than a percentage plus a dime, the savings story here is about the rail, not about our markup. On cards, our markup is a flat dime per transaction that never goes up. On ACH, you avoid the card percentage entirely for the right kind of payment. Using both, and putting each invoice on the cheaper one, is usually the lowest total cost you can run.