Getting paid
ACH payment
An ACH payment is an electronic bank-to-bank transfer processed through the US Automated Clearing House network, commonly used to pay invoices and run payroll.
How ACH payments work
ACH (Automated Clearing House) moves money directly between US bank accounts in batches through a central network. When a client pays an invoice by ACH, funds move from their bank account to yours without a card in the middle.
ACH payments usually take one to a few business days to settle and cost far less to process than credit cards, which is why they’re popular for larger invoices and recurring billing.
ACH vs. card and wire
Compared to credit cards, ACH is cheaper but a bit slower and not instant. Compared to wire transfers, ACH is cheaper and better for routine domestic payments, while wires are faster and better suited to large or international transfers.
For invoicing, offering ACH alongside cards lets clients pick the lower-cost option for bigger bills, helping you keep more of each payment.
Example: A client pays a $5,000 invoice by ACH. The funds transfer bank-to-bank over a couple of business days for a few cents in fees, instead of the ~3% a card would cost.
FAQs
Frequently asked questions
How long does an ACH payment take?
ACH payments typically settle within one to a few business days, depending on the timing and the banks involved. Same-day ACH is available for some transactions.
Is ACH cheaper than a credit card?
Usually, yes. ACH processing fees are generally much lower than the ~2-3% charged on credit card payments, which makes ACH attractive for larger invoices.
Related terms
Wire transfer
A wire transfer is an electronic, bank-to-bank transfer of funds, usually settled quickly and often used for large or international payments.
Invoice payment
An invoice payment is the funds a buyer sends to a seller to settle the amount owed on an invoice, by or before its due date.
Payment terms
Payment terms are the conditions on an invoice that state when payment is due and how it should be made — for example "Net 30" or "Due on receipt."
Put it into practice
WaffleInvoice lets you create branded invoices, set payment terms, collect payments online, and automate reminders — free for unlimited invoices.
Accept ACH and card payments Browse the glossaryNo credit card required.