What are the Most Effective ACH Services for Small Businesses?

Your clients are probably used to paying with credit or debit cards, PayPal, or even digital wallets if you accept payments online (such as Apple Pay or Google Pay). Some of your clients, on the other hand, maybe willing to authorize a simple bank transfer using the ACH (Automated Clearing House) Network. 

While paper checks are becoming extinct, bank-to-bank transfers that avoid card networks (such as Visa and Mastercard) are still in use. These ACH payments are frequently referred to as eChecks, and you’re probably already using them to pay some of your personal or business bills. 

You’ve utilized the ACH Network if you’ve ever used direct deposit to receive or distribute a paycheck, or if you’ve ever gotten a tax return directly into your bank account from the IRS. As you may be aware, ACH services for small business has several advantages over card-based payment methods for certain sorts of transactions, making it a desirable low-cost, recurring payment alternative. 

E-commerce enterprises understand the value of offering a variety of online payment options to their clients. Accepting payments via credit cards and debit cards is probably second nature to you, and some digital methods, such as Apple Pay, have become increasingly popular. 

While traditional checks have all but vanished, a new type of digital payment known as eChecks is gaining in popularity. The ACH network, or the Automated Clearing House network, transfers funds using the same information as a traditional check. 

ACH Services for small business

It’s crucial to establish what an ACH payment is before diving into the finest ACH processing businesses. As previously stated, these are payments processed through the ACH network and are typically in the form of an eCheck.

eChecks function similarly to paper checks in that they transfer funds from the customer’s account to the payee’s account using the same information. Naturally, the consumer must submit payment information, which you can then enter into your online ACH payment processing software to initiate the transaction. Keep in mind that eCheck payments can take up to five days to reach your bank account. 

Companies that specialize in ACH payment processing

1. Square 

This is the best option for very tiny or seasonal businesses.

Favorite of small businesses Square has long been a popular solution for fledgling businesses with little past processing experience or those who just need to accept non-cash payments on occasion. 

Square now adds ACH transfer processing with every account, in addition to the ability to accept credit and debit card payments. Unfortunately, ACH payments can only be processed through Square Invoices, thus eCommerce merchants who use the Square Online Store to run their business are unable to accept them. 

ACH services for small business will be a welcome addition for Square Invoice users (such as freelancers, independent contractors, or professional services) because it allows your customers another means to pay you. ACH transfers cost 1.0 percent of the total transaction amount and take 3-5 business days to reach your bank account. While this is a hefty rate, keep in mind that Square does not charge a monthly fee to keep your account active. At this moment, Square’s ACH processing service does not support partial payments.

While Square is known for having more account stability difficulties than standard merchant accounts, ACH accounts are less likely to experience a sudden account hold, freeze, or cancellation because payments are withdrawn directly from your clients’ bank accounts.


2. Dharma 

Dharma is one of the most well-known and commonly used ACH processing companies. Their straightforward processing platform allows you to accept checks as well as manually enter bank account information for transactions. Furthermore, you may utilize the software to set up recurring payments, and it also supports both in-person and telecheck acceptance. 

Dharma is one of the most cost-effective and versatile choices for accepting online ACH payments. However, if you work in a high-risk industry, it can be tough to use Dharma because they don’t often cater to these businesses.

3. PaymentCloud

PaymentCloud is one of the top ACH payment systems for individuals who work in high-risk industries like travel and gambling. PaymentCloud focuses on companies like this, whilst other services seek to avoid them.


Setup is very speedy, with the company claiming to be able to get you up and running in 48 hours if you supply all of the necessary paperwork.

The disadvantage of using PaymentCloud is that their prices are not made public. Because they work with a lot of high-risk organizations, their plans tend to be more personalized, making it harder to compare them to other companies on a one-to-one basis. 

4. Stripe

Stripe, a fintech business that also provides ACH payment services, may be recognizable to you. Stripe is a wonderful alternative if you’re a developer or have one on your team because it can be customized by people with the necessary programming skills. You may use Stripe to send invoices to your clients and it integrates well with your online payment site.

Stripe has been accused of having account stability difficulties. As a result, it’s not a good fit for high-risk organizations, which would be better served by PaymentCloud. 

5. Stax 

Anyone who wants to accept online ACH payments, as well as credit card payments, should look into Stax as a processing option. The monthly fees for this service are somewhat hefty, but you get a cheap price for ACH transfers in exchange. This makes it an excellent choice if you do a lot of transactions because you save more money when you do more with Stax.

We can assist you

We can assist you to automate payment collection, reducing the amount of administrative work your staff has to do while chasing bills.

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