With technology becoming advanced by every passing day, the demands of consumers are also increasing. They want more payment processing options to make their shopping experience even better. There are a lot of payment solutions available and one of them is ACH which stands for Automated Clearing House payments. This payment processing system is not only widely used by customers for making purchases but also by businessmen and individuals. In this economical era where everyone is talking about cutting down the use of paper to save trees, ACH payment processing is also playing its own vital role as it has replaced the paper checks. Automated Clearing House payment processing is a payment solution which enables the transfer of money from one bank account to another bank account electronically and it is managed by U.S. financial network. Federal government and the National Automated Clearing House Association (NACHA) regulate the ACH payment network. We all have used the ACH payment method at some point but we have not understood its intricacies. In other words we can also say that ACH payment processing is an alternative to paper checks, cash, or debit/credit card. More and more merchants are now switching to ACH payment solution. In fact according to NACHA, the ACH network is touching approx $43 trillion each year!

There are two versions of ACH:

  • ACH Direct Deposit: Also commonly referred to as ACH credit transaction. It let you “push” money to different bank accounts online. For instance, employer deposits payroll in his employee’s bank account or deposit of funds for government benefits.
  • ACH Direct Payment: Also commonly referred to as ACH debit transaction. It let you “pull” money from an account. It happens when merchant has set a recurring billing payment. For instance, on a monthly basis company will automatically pull funds from your account.


After knowing about how ACH payment processing works let us now look at the advantages of switching to ACH payment processing.

  • Extremely easy: ACH payment processing is user friendly. With minimal labor anyone can transfer money from one account to another account. Across the country, merchant can easily accept payments from customers. There is no extra complications involved in this process.
  • It is fast: ACH payment process in three batches at specific intervals throughout the day, which makes it faster. The average debit transaction settles within one working day whereas the average credit transaction takes within one to two working days.  And in coming years NACHA will allow for same-day ACH transaction settlement.
  • Much cheaper: In comparison to fees involved in credit card network are much less for ACH payment. ACH processing fees (a flat rate or some percent of transaction) will be charged by ACH processor but that also is much affordable. If you compare the typical fees you will find that ACH is cheaper than paper check, credit card and debit card.
  • Risk free: Security of our money is our priority. ACH payment processing is the safest mode of payment solution. All the important details of our account provided by us are encrypted in codes which is very hard to crack. ACH have strict rules which have to be followed by merchant’s processor.
  • Income tracking possible: Your bank keeps record of every ACH transaction. So, you can easily track your transactions anytime through your bank’s online portal.
  • No need of having credit/debit card or check:  There are many customers who don’t have access to credit/debit card so ACH payment processing is the best option for them. Even if the bank is not near your reach then also you can transfer money from this easy electronic mode of payment, ACH.
  • Free from paper records:  Your information is safer in electronically encrypted transaction than on paper and ACH payment processing minimizes the paper records (invoices) which contains sensitive information.
  • Save resources: ACH payment processing is economical and saves resources like time, paper, ink, fuel and other resources.
  • Directly pay wages and salary: ACH payment processing is convenient for customers as well as merchant. Wages and salary of employees can be easily paid at designated pay periods through this system. Employees don’t have to wait for their paycheck and deposits to the bank.
  • Great for subscription services: If you have a type business which offers any kind of recurring service or product then ACH payment processing is the most suitable option for you. No other payment solution can provide you the facility of recurring billing where neither you nor your customer has to worry about transaction every month. Auto-draft capabilities of ACH reduce our time and energy.
  • Most suitable for small and medium businesses: Setting up ACH payment solution for your business is much more affordable than any other payment gateway. Small businesses can start receiving payments from across the country by paying a minimal amount and little paperwork.
  • No more credit card chaos: Credit card charge is full of chaos. One of the biggest drawbacks of credit card is that it regularly expires or after any suspected fraud number gets changed. Whereas, consumers don’t change their bank accounts regularly so you don’t have to chase for updated payment information. Also credit card disputes for almost any reason whereas there are only specific reasons for ACH disputes which can be easily resolved.
  • Control chargebacks: The biggest threat to any merchant is chargeback. In credit and debit card chargeback can be easily filed by the customer just because he was unhappy. After credit/debit card transaction, customer has 120 days to initiate a chargeback against the merchant whereas only 90 days (or just 60 days after charge shows up your statement) limit is being given to customer. Rules of chargebacks are very strict in ACH, as earlier mentioned there can be only specific reason for disputes in ACH. So it becomes really hard for customers to chargeback.
  • Additional payment method: More is better. Competition is growing continuously so to make your hold strong in the market you should have an extra payment method which is safe, cheap and easy. Many customers don’t like to share their credit card information and some even don’t have any credit card. You can take this advantage by providing ACH payment solution.


To get ACH payments at your business, you have to find a suitable payment processor who can understand your business and provide you a reliable and efficient ACH merchant account. Before selecting the payment processor do your research and then go with the best one. All the qualities that merchant should look in a payment processor are found in iPayTotal. With a decade of experience and professionals they have been working really hard and providing the best services. IPayTotal provide 24/7 customer services, provide you more payment solutions other than ACH, maintain the transparency, loyalty with the client and help your business to grow.

So let’s get started!


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