Why Small Businesses Should Accept ACH Payments

By Payliance | 05/10/19

Merchants have a variety of considerations to make, including the different types of payment that the business should accept. ACH payments are seen as an established and trusted payment method, with 23 billion payments processed over the ACH network in 2018 alone. With low costs and fast processing times, many smaller businesses are considering accepting ACH payments from their clients.

ACH payments are payments routed through the Automated Clearing House (ACH), an electronic network that transfers funds directly between banks and accounts. ACH payments are often used for direct deposit of payroll, as well as recurring payment of fees such as rent, mortgage, and monthly memberships.

While ACH payments may be beneficial to enterprises of all sizes, they can significantly impact small and medium businesses:

Low Transaction Cost

Many companies strive to work lean, taking advantage of every possible opportunity to control costs. ACH payments are far less expensive than other forms of payment, often coming in at a fraction of the cost of cards or paper checks.

Credit and debit cards transactions are processed over the card networks, which are run for profit and charge fees, either a flat fee or a percentage of the transaction value. In some cases, discount rates can be leveraged which combine per transaction fees and fees from a percentage of the transaction to provide added value. ACH transactions, on the other hand, are run on the ACH infrastructure managed by the Federal Reserve and fees are assigned on a not-for-profit basis, covering only the base cost of the transaction.


ACH payments are convenient for both customers and merchants. They can be initiated in person, online, by mobile device, or by phone, 24/7 providing customers with multiple ways to make a payment.

Offering ACH also improves a merchant’s ability to accept electronic payments from customers who may not have access to a traditional credit card account. ACH payment processing also streamlines internal processes by eliminating the need for paper invoices, checks, and trips to the bank.

Recurring Billing

ACH transactions can be automated for billing and receipt of regularly scheduled payments, automating recurring transactions and reducing the administrative burden on the merchants as invoices, bills, and payments can be set up to run without human intervention. Automatic ACH payments also eliminate issues such as unpaid invoices, which can affect cash flow and require further effort on the part of the business to resolve.


Every merchant, vendor, and customer that is a party to an ACH payment must follow the security regulations set up by the National Automated Clearinghouse Association (NACHA). Payment processing partners may offer advanced fraud protection for ACH transactions as well to increase data security and eliminate potential fraud.

Accepting ACH payments can widen the potential customer base and increase customer satisfaction while helping small businesses grow and sustain themselves over time.

Read more: Move Payments Faster: Understanding ACH Payment Processing for Businesses

Selecting Payliance as an ACH payment processing partner makes it fast, easy, and secure for small businesses to process one-time and recurring payments while minimizing processing costs. Small businesses can provide their customers with flexible payment options by easily accepting online, phone, or mobile payments.

With a cloud-based dashboard and real-time reports, a small business owner can easily access critical, accurate, timely data for decision making. The recurring transaction engine simplifies process automation, while Payliance’s late cut-off times and no-fee Sunday processing make it easy to provide anytime, anywhere customer access.

Request a consultation with our ACH experts to begin easily accepting ACH payments to minimize processing costs and quickly receive payment.

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