What is ACH Payment Processing for Small Businesses?

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When it comes to cash flow, ACH payment processing for small businesses gives you an edge over your competition. ACH, or “automated clearing house” payments quickly process transactions electronically. This eliminates the need for a paper check and costs less than credit card processing.

Here, we’ll answer the most common questions we get about ACH:

  1. How does ACH payment processing work?
  2. How can ACH processing help my business?
  3. Is enabling ACH processing worth it?
  4. How do I get access to ACH payment processing?

How Does ACH Payment Processing Work?

ACH payments are used to move funds from one bank account to another. The funds move through the ACH Network, with the funds deposited into the receiving bank account within a few business days. ACH, at its simplest, moves funds without needing to use a physical check, credit card, or debit card.

ACH payment processing for small businesses is particularly helpful for paying recurring bills. Direct Payment via ACH is used for customers to pay for services. They can pay through ACH Credit or ACH Debit. ACH Credit pushes the funds to an account, while ACH Debit takes from the account. A customer would use ACH Debit for recurring bills they want to put on autopay, whereas they would use ACH Credit for making a one-time payment.

How Can ACH Payment Processing Help My Business?

ACH payment processing saves businesses time and money. You can track expenses and cash flow, especially if you use recurring billing or invoicing. ACH payments are a better alternative to wire transfers since they’re free for customers. And best of all, they save your business money on processing.

1. Better ACH Payment Processing Fees

ACH is less expensive than paying with a credit card. For merchants, ACH costs less than $1 per transaction no matter the size of the transaction. Interchange rates for credit cards vary depending on the brand, but the more you process, the more you’ll pay if you use a traditional credit card processor that charges a markup. You’ll save on processing fees while tracking your incoming payments.

2. Easy ACH Set Up for Customers

You’ll find that many customers prefer the ease of ACH. You just need your customer’s banking information to use ACH payment processing. While paying your invoice, they only need to enter their account and routing number once. Then, each month (or whichever interval you choose) the invoice amount will be automatically deducted from their account. Customers no longer have to manually pay invoices, and it doesn’t cost the customer any extra.

3. No More Expired Credit Cards

Because consumers don’t change their bank accounts very often, you won’t be chasing down updated payment information. Unlike credit cards which regularly expire or have the number changed after a suspected fraud attempt, the bank account and routing number will likely remain the same for years. You’ll save time on manual operations tasks by letting customers set up ACH and forget about manual bill pay.

Is ACH Processing Worth It?

To find out if ACH could help your business, you can just do a little math. Find out how much ACH processing is with your payment provider. Then, add up how much you’re spending on interchange and card processing and compare it to the fee.

For instance, let’s take a marketing agency has 10 clients that are billed $2,000 each per month through an online invoice. With most processors, there would be a 2.9% + .30¢ fee to process these transactions. At this rate, it would cost your business $583 a month to process this through credit cards.

In contrast, with Fattmerchant’s ACH processing, you would only be paying $51.50 to process the same 10 payments. That’s a savings of over $530 a month – adding up to over $6,300 a year. We know for small- and medium-sized businesses, every penny counts – and that’s a lot of pennies.

How Do I Get ACH Payment Processing?

You’ll need to work with a processor to use ACH payments at your business. Payment processors facilitate the actual payment and deposit the money into your account. Using ACH payments lowers your processing costs.

If you use a subscription-based processor like Fattmerchant, for each charge you pay a one-time transaction fee no matter how big the transaction is. Whether it’s a one-time payment or recurring billing, you can set up ACH through a virtual terminal and accurately track your payments.

For Fattmerchant customers, just email or call your account manager and ask to turn on ACH processing. You can also do this by logging into the Omni dashboard and clicking to the Apps section. Find and click into the ACH app and click the Contact button to reach out to our support team.


Once enabled, you can even disable credit card payments on invoices so you will only allow customers to pay by ACH. This means you can take control over your payments and ensure that you’re getting the lowest possible rate.

ACH payments are a secure way to get paid faster, and with Fattmerchant, you’ll receive funds quicker. It’s a smart solution for managing your business operations and your cash flow!

If you’re ready to see how Fattmerchant works for businesses, check out How it Works to learn more or use our chat to reach out to one of our team members!

Fill out the form below to see how ACH can benefit your business.

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