Bottom Line: ACH payments process over 31.5 billion transactions worth $80.1 trillion annually, offering businesses lower costs, faster processing, and reduced fraud compared to checks and cards. For remote entrepreneurs, accepting ACH payments means reaching more customers while streamlining financial operations from anywhere.
Are you running a remote business and wondering if you should accept ACH payments? Over the past two decades, we’ve helped thousands of entrepreneurs from more than 80 countries set up U.S. businesses, and payment processing consistently tops their priority list.
The Automated Clearing House (ACH) network has transformed how American businesses handle payments in an increasingly digital economy where your competitors already offer multiple payment options.
What Are ACH Payments?
The ACH network is the electronic system that moves money between U.S. bank accounts. When someone pays you via ACH, money transfers directly from their bank account to yours without requiring physical checks or card networks.
Nacha (National Automated Clearing House Association) governs this network, establishing rules and security standards. The network now processes payments 23.25 hours every business day and settles transactions four times daily.
ACH Credit vs. ACH Debit
ACH Credit (Push Payments): The payer initiates the transfer from their account to yours, like direct deposit payroll. When you start your LLC and pay employees, you’ll use ACH credit.
ACH Debit (Pull Payments): You pull funds from a customer’s account after authorization, ideal for recurring payments like subscriptions or monthly service fees.
How ACH Payments Process
According to Nacha, approximately 80% of all ACH payments settle in one banking day or less:
- Customer authorizes the transaction
- Your business sends payment instructions to your bank (ODFI)
- Your bank batches transactions and sends them to an ACH Operator
- ACH Operator routes payments to destination banks
- Customer’s bank (RDFI) processes the transaction
- Funds move between accounts in 1-3 business days
With Same Day ACH, businesses can send and receive payments up to $1 million on the same day, settling in just hours.
Why Accept ACH Payments
Lower Transaction Costs
ACH transactions cost $0.20-$1.50 each, regardless of amount. Credit cards charge 2.5%-3.5% plus fixed fees. For a business processing $10,000 monthly, that’s $250-$350 in card fees versus $20-$150 in ACH costs—saving $2,760-$4,200 annually.
Faster Cash Flow
Same Day ACH volume surged 45.3% from 2023 to 2024, with over 1.2 billion payments worth $3.2 trillion. You gain greater control by setting specific dates for recurring payments, ensuring predictable cash flow.
Lower Payment Failures
Credit cards expire and checks get lost. Bank accounts don’t. ACH transfers happen directly between banks, reducing payment failures—critical for remote business owners who can’t chase customers in person.
Reduced Chargeback Risk
ACH debits can be reversed within 60 days if unauthorized, but the burden of proof differs from credit card disputes. This extra commitment layer means fewer frivolous cancellations.
Automatic Record Keeping
Every ACH transaction creates electronic records automatically. Your accounting software syncs directly with ACH payments, saving hours of bookkeeping for entrepreneurs managing businesses across time zones.
Wider Market Reach
B2B payments on ACH grew 10% in Q3 2025, reaching 2.1 billion payments worth $16 trillion. Businesses are moving from checks to ACH, and check usage dropped from 81% in 2004 to just 26% in 2024.
How to Start Accepting ACH Payments
Choose Your Payment Processor
Several payment processing solutions support ACH:
- Square: Ideal for businesses using Square for other payment types
- Stripe: Robust developer tools for custom solutions
- PayPal: Widely trusted platform with ACH processing
Compare per-transaction fees, monthly costs, processing speed, and integration capabilities.
Set Up Your Merchant Account
You’ll need:
- Your business EIN
- Bank account information
- Registered agent and business address
- Business documentation
BusinessAnywhere helps international entrepreneurs navigate this process through partnerships with banking providers who understand digital nomad needs.
Integration Options
Modern processors provide plugins for WordPress, Shopify, QuickBooks, and custom APIs. Integration typically takes 30 minutes to a few hours.
ACH Security and Fraud Prevention
The ACH network includes multiple protection layers. Nacha enforces strict operating rules, and the Federal Reserve provides oversight and fraud detection tools.
In June 2025, federal banking regulators requested input on addressing payment fraud, focusing on ACH, wire, and check fraud prevention.
Best Security Practices
Verify Customer Information
- Confirm bank account and routing numbers before processing
- Use account verification services
- Request written authorization for ACH debits
Monitor Transactions
- Review daily reports for unusual patterns
- Set up alerts for large transactions
- Reconcile accounts frequently
Access Controls
- Restrict who can initiate ACH transactions
- Require dual authorization above certain thresholds
- Update credentials regularly
The Association for Financial Professionals found that while checks remain most susceptible to fraud (65% of organizations in 2024), ACH fraud is relatively rare and easier to prevent.
ACH vs. Other Payment Methods
ACH vs. Credit Cards
- Cost: ACH $0.20-$1.50 vs. cards 2.5%-3.5%
- Speed: Both settle to merchant accounts in 2-3 days
- Fraud: Cards carry higher chargeback risk
- Best for: ACH for subscriptions and B2B; cards for consumer retail
ACH vs. Wire Transfers
- Cost: Wires $15-$50 vs. ACH under $2
- Speed: Wires in hours vs. ACH 1-3 days (Same Day bridges gap)
- Best for: Wires for urgent/international; ACH for routine domestic
ACH vs. Checks
- Cost: Checks $4-$20 vs. ACH under $2
- Fraud: Check fraud increased 385% since COVID-19, per U.S. Treasury
- Best for: Eliminate checks when possible
International Business Considerations
U.S. Bank Account Requirements
BusinessAnywhere partners with financial institutions allowing remote account opening for non-U.S. residents with proper documentation:
- U.S. business formation (LLC or Corporation)
- EIN from the IRS
- Registered agent service
- Virtual mailbox at U.S. address
Tax Implications
Payment processors issue Form 1099-K if you receive over $5,000 in payments (2024 threshold). Consult with cross-border tax professionals about your specific obligations.
Currency Management
ACH only processes USD between U.S. accounts. For international clients:
- Accept ACH for U.S. customers
- Use Wise, PayPal, or Stripe for non-U.S. customers
- Consider multi-currency business accounts
- Compare foreign transaction fees when choosing banking partners
Industry-Specific Applications
E-commerce: Offer ACH for purchases over $500 with 1-2% discounts
SaaS/Subscriptions: Default to ACH for annual plans to increase customer lifetime value
Professional Services: Send invoices with ACH payment links for retainers and large invoices
Real Estate: Require automatic ACH rent payments to reduce late payments
Healthcare: Healthcare claim payments via ACH climbed 2,556% from 2014-2024, per Nacha
Nonprofits: Set up recurring donations via ACH to maximize mission funding
Common Mistakes to Avoid
Not Getting Proper Authorization
Always obtain written or recorded authorization before initiating ACH debits, including customer information, payment amount/frequency, and cancellation terms.
Ignoring Processing Timeframes
Set realistic expectations: standard ACH takes 1-3 business days; Same Day processes same day if submitted before cutoffs; weekends and holidays add delays.
Poor Failed Payment Procedures
Establish clear procedures for handling returns (insufficient funds, closed accounts, invalid numbers). Follow Nacha rules for maximum two retry attempts.
Not Offering Multiple Payment Options
Most successful online businesses accept at least three payment types. Review payment processing comparisons to evaluate options.
Taking Action
This Week:
- Verify your business registration and EIN
- Review payment processors
- Check your bank’s ACH capabilities
This Month:
- Choose and set up payment processor
- Integrate ACH into your website/invoicing
- Create authorization forms and procedures
- Announce new payment option to customers
Next 3-6 Months:
- Track adoption rates and costs
- Convert recurring customers to ACH
- Implement quarterly security reviews
- Stay informed about Nacha rule changes
Frequently Asked Questions
How long do ACH payments take to process?
Standard ACH takes 1-3 business days. Same Day ACH processes same day (up to $1 million). Nacha reports approximately 80% settle within one banking day or less.
How much do ACH payments cost?
ACH costs $0.20-$1.50 per transaction regardless of amount. This saves $2,760-$4,200 annually versus credit cards for businesses processing $10,000 monthly.
Are ACH payments secure?
Yes. The network is governed by Nacha and regulated by the Federal Reserve, with strict security standards and multiple fraud detection layers.
Can international businesses accept ACH?
Yes. You need a U.S. business entity, EIN, and U.S. bank account. BusinessAnywhere helps international entrepreneurs establish necessary infrastructure while living abroad.
What’s the difference between ACH debit and credit?
ACH debit pulls funds from customer accounts after authorization (subscriptions). ACH credit pushes funds from customer to business (invoice payments).
Can customers reverse ACH payments?
ACH debits can be reversed within 60 days if unauthorized, but burden of proof differs from credit cards. Proper authorization is crucial.
Are there transaction limits?
Standard ACH has no network limits, but banks may impose their own. Same Day ACH caps at $1 million per transaction.
Conclusion
The business world is moving toward electronic payments. ACH represents the efficient, economical middle ground between instant payments and traditional methods.
Over 31.5 billion ACH transactions worth $80.1 trillion processed in 2024, with B2B volume growing 10% and same-day transactions surging 45.3%. Businesses that don’t adapt risk falling behind.
For remote entrepreneurs, accepting ACH payments means operating a modern, globally competitive business from anywhere. You’re not tied to physical locations or limited to expensive card processing.
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