9 Best ACH Payment Processors In 2023 - M2CIM

This is different from International ACH Transaction (IAT) — which is more about bank reporting. Banks may mention IAT even when they do not offer international transfers. ACH transfers to overseas accounts are possible but are not yet widespread. Understanding how transfers work helps you choose the best method for what you need.

Once you provide this information to your ACH payment processor, your work is done. For example, many banks offer online bill payment services at no charge. However, if you’re the one receiving an ACH payment, you’ll have to pay a small percentage or a flat fee for each transaction. The ACH network is open for payment processing for more than 23 hours every business day, with payments settling four times a day. ACH payments can be credited the same day, the next day or within two days for speedy processing.

You’re our first priority.Every time.

This also helps businesses get paid faster and with low processing fees. Once you’ve decided on a payment processing company, you’ll set up your account and ensure ACH payment acceptance functionality. If you’re working with your current credit card processor, you may need to add ACH to your available payment options. ACH payments are transfers of funds between accounts at different financial institutions, made using the ACH network. ACH transactions typically settle within 1-3 business days, depending on the processing timeframes of the banks involved.

Depending on the fee structure you use, your customer might be liable to pay the fee rather than you. Many major payment providers, which you might already be using to accept credit and debit cards, also support ACH payments. For example, Square charges 2.9% plus 30 cents for online credit card payments, but 1% with a $1 per-transaction minimum fee for ACH payments. Similarly, Stripe charges 2.9% plus 30 cents for online credit card payments, but 0.8% for ACH payments, with a maximum ACH per-transaction charge of $5.

Lower processing fees

After receiving authorization, businesses collect the necessary bank account information from customers, including routing and account numbers. This information is securely stored and used to initiate ACH transactions. Payment processors or banks then take the initiated transaction details and submit them to the ACH network for processing. Customers provide businesses with authorization to withdraw funds from their bank accounts accepting ach payments electronically for various payments, such as bills or purchases. This authorization is typically obtained through written consent, electronic signatures, or online checkboxes where customers agree to the terms and conditions of the ACH transaction. Most ACH payment processing companies are primarily credit card processors, so you’ll usually be able to run customer and sales reports or export data from your account.

ACH transactions are a subset of electronic funds transfer (EFT) payments, which encompass a wide range of financial processes to route money directly from one bank account to another. These include debit cards, ATMs, wire transfers, electronic checks, and pay-by-phone transaction systems. Before you can offer a discount to customers who move from paper checks or credit cards, you’ll need to understand how ACH transactions affect your bottom line. Don’t give away more than you’ll realize in savings on payment processing fees. ACH payments cost 0.80% for Stripe customers, with a $5.00 cap and no monthly fees or verification fees. For example, a $200.00 payment would cost a Stripe customer $1.60, and any payments above $625.00 would cost $5.00.

What platforms let you accept ACH payments?

GeographyACH transfers are available within the US only, but wire transfers can be sent internationally. If an ACH payment is returned, the ODFI will receive a code for the reason of return. The most common cause for return is that an account is closed or could not be found (i.e., there was an error in the account or routing number). AR automation creates a stellar customer experience and lowers DSO, and the AR Team benefits from the ease of use and lack of manual data entry work. Feel confident knowing your financial data is protected by the highest level of certified bank-grade security practices.

Whether low-cost or full-featured solutions are what you need, you’ll be able to find one that fits—and by using a five-star rating system, you’ll know which is the best overall. In addition to pricing and features, we also looked at customer support and user reviews. As far as ACH payment processing, Stripe charges 0.8% with a $5 cap, which is one of the most affordable rates out there. The only downside to using Stripe for ACH payments is that the company charges for failed payments—$4 per failed payment and $15 per dispute. If you’re fine with that gamble, Stripe could serve as your only payment processor.

Payment Processing Rating Methodology

The Ascent, a Motley Fool service, does not cover all offers on the market. The ACH network handles more than 26 billion payments totaling over $61 trillion per year, according to the National Automated Clearing House Association, which runs the network. Our partners cannot pay us to guarantee favorable reviews of their products or services.

• It’s one of the very few providers in the industry to provide a stable, full-service merchant account with no monthly account fees.
• Developers can easily create custom checkouts with Stripe as the payment processor.
• Merchant Maverick’s ratings are editorial in nature, and are not aggregated from user reviews.
• As the name implies, RTPs settle almost immediately, making them convenient for situations in which you need to pay someone quickly.
• Think outside the box and focus on what might motivate customers the most.

The easiest way to set up ACH payments may be through your business bank account. In that case, you’ll simply share your bank information with your customers and ask them to initiate payment. ACH payments are safe, easy, reliable — and usually less expensive than other payment methods. So, if your small business is not already accepting ACH payments, it may be time to start. He also writes for The Ascent (a Motley Fool service), where he covers insurance, credit cards, personal finance and investing.