Frictionless and Inexpensive ACH Payments

Profit is the heart of every business — and profit is fueled by effective payment processing. But processing credit card transactions can be costly to your organization.

Did you know that ACH, or Automated Clearing House, payments provide a more affordable alternative to credit and debit payments?

Often referred to as eChecks, ACH payments occur over a regulated financial network that debits money directly from a payer’s bank account and deposits it into the account of the recipient. This payment method is commonly used for larger purchases or recurring payments, like rent or utilities.

Let’s dig a little deeper into what makes ACH payments an attractive, inexpensive method of payment. Perhaps your business might consider ACH processing in your roster of payment options.

What is ACH?

Created to replace paper checks as their use diminishes, ACH is a type of electronic payment that is transferred from one bank account to another. One of the key benefits of ACH is that it reduces churn. What does this mean?

When a payment fails, it’s often due to expired or overcharged credit cards. This isn’t a problem with ACH payments since they don’t depend on credit, meaning ACH transactions are less likely to fail.

Accepting ACH payments requires an account with a payment processor, like Forte. Once you’re set up, you can process ACH payments in a couple ways.

  • Manual Entry: Customers can manually key in their bank routing number and account number to pay via ACH. Businesses can also key in this info for telephone and mail orders.
  • Check Scanner: Paper checks can be scanned and converted into a digital ACH transaction.

Paying via ACH takes a comparable amount of time as keying in a credit card number.

Transaction Speed and Cost of ACH processing

It used to be that ACH payments could take a few business days to process, leaving the receiving business at the disadvantage of delayed payment. But that changed in 2016 when same-day ACH payments were launched by NACHA. Now you can experience all the benefits of ACH payments paired with a faster flow of funds.

Even better? Processing ACH payments generally costs less than processing card payments. While you might pay 2% (or more) per card transaction, you’re likely to only pay a flat fee ranging from 25 to 75 cents per ACH transaction. Bear in mind, your payment processor might also charge a monthly fee for these services, but the per transaction savings often makes it worthwhile.

Just think about it. Processing a $100 payment by card might cost $2, while the same payment made via ACH could cost only a quarter to process. When you account for transaction volume, the savings could be huge for your business.

ACH for Recurring Payments

One of the most common uses of ACH payments is for recurring payments, like paying for a monthly subscription. In fact, NACHA reported that ACH payments are preferred by billers when it comes to recurring payments.

When setting up recurring payments via ACH, customers only have to do it once and then it automatically draws the money out each month.. This saves time for both your business and your customers. The automatic process also reduces the risk of missed payments and can even improve retention rates.

Some customers prefer recurring payments to be drawn from their bank accounts rather than charged to credit cards. Offering ACH can go a long way toward pleasing your customers, which is a great benefit alongside the savings discussed above.


ACH payments are easy and inexpensive, providing benefits to your organization and customers. When customers pay via ACH, the funding should come through on the same day with a low processing fee. Sounds like a win!

Are you ready to get started? Visit our site today for more information and to get setup with ACH processing.

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