How Your Business Can Accept ACH Payments

business ach payments

You can only process ACH payments via Square Invoices, but it’s a free service, like its credit card payment processing service. With the basic Square download, you’ll also get access to a point-of-sale system and standard reports through the dashboard. Square offers phone, live chat and email support, but its hours are limited to 6 a.m. Subscription and membership businesses are plagued with canceled and maxed-out credit cards.

Who can initiate an ACH payment?

ACH payments begin when the originator (payer)starts the process by requesting the transaction. The originator can be a consumer, business, or a government agency. The transaction can be a deposit or a credit or debit payment.

Paper checks can get lost or stolen on the way to the recipient, which can put a business’s bank account information into the wrong hands. Business to business ACH payments transfer money directly between accounts with bank-level encryption so there’s no risk of leaking confidential information. Payment processors usually charge a flat ACH processing fee of less than $1 per payment. The more transactions you process, the lower the cost to your business, especially when compared to credit card fees.

Get payment details.

Payment Depot doesn’t add a percentage to wholesale interchange rates. Stax by Fattmerchant may be best for businesses that can predict a high amount of sales per year to make the monthly subscription worth it. Here are the benefits and drawbacks of using ACH payments in your small business. If you run a subscription for a publication, an online community or a yoga or fitness studio, look into adding an ACH payment option for your customers. If you want to use something other than PayPal to accept payments,… Paying government taxes to the IRS is made much easier by using ACH payments for withdrawal of funds.

payments from customers

And when credit card transactions go wrong, the funds can get tied up for weeks on end. Look at contract length—some payment processors allow month-to-month billing, while others may require up to a three-year contract. If you’re fine with a long-term contract, read the fine print to find out how much it may cost for early termination.

Pros and Cons of Accepting ACH Payments

Most businesses have to pay a lot of other businesses to keep things running. Rent, electricity, internet, printing, shipping, advertising, raw materials—the list goes on. For some companies, the number of business to business payments they have to make every month can run into the thousands. If you have questions about how to get started with ACH payments, reach out to a Cadence Bank Treasury Management Officer today. Or, explore our full range of payables management solutions to see what our customized approach to commercial banking can do for your business. Always use dual controls when setting up vendors for ACH payments.

Cadence accept ach payments makes no representations or warranties as to the accuracy, completeness or timeliness of the content in the article. The article is not intended to provide legal, accounting or tax advice and should not be relied upon for such purposes. Ensure that your accounting or payroll platform is locked down, secured and has internal multi-authentication in place to help avoid a cybersecurity breach. Depending on your customer’s bank, some fields may appear in all lowercase or uppercase. You can check your eligibility and activate this option on the payment method settings page in the Dashboard. For more information on faster settlement, see the Support page.