ACH Payments And ACH Transaction Fees: What Are They And who they Can Be Useful For

ACH transaction fees are electronic transfers between banks over the Automated Clearing House network.

Examples of ACH transfers are; 

  • External cash transfers
  • Person-to-person payments
  • Bill payments
  • Direct deposits from companies and government benefit programmes (better known as business-to-business payments)

Many transfer providers, including banks, Zelle, and third-party apps like PayPal and Venmo, use the ACH network to send money to friends and family.

An ACH fee is charged for processing ACH debit or credit transactions. Since the cost does not go to big credit card firms, an ACH fee is less expensive than credit card processing.

ACH transaction fees

The types of ACH transaction fees

ACH transfers are used by both consumers and companies for two types of transactions: direct payments (ACH debit transactions) and direct deposits (ACH credit transactions).

ACH Debit Transactions

In an ACH debit transaction, one party agrees to pay another. To do this, the party receiving payment messages the ACH network to collect the payment and deposit the funds into their account.

That is, the payer (e.g. customer) authorises the payee (e.g. merchant) to deduct payment from their account when it’s due. 

ACH debit transactions include all types of deposit payments made by companies or the government to customers Payroll, employee expenditure reimbursement, government benefits, tax and other refunds, annuities, and interest payments are all included.

ACH Credit transactions

These credit transfers electronically “push” money to your other online accounts.

Who needs them?

The ACH system is among many payment options available to your company. You can submit bill payments such as utility bills, rent payments, invoices, and credit card payments.

It’s required by businesses who:

  • Have a significant number of customers who currently pay by credit card or paper checks
  • Take recurring payments
  • Have members of their customer base, or potential customer base, uncomfortable with making online payments via credit card
  • Are currently ineligible to accept credit and debit cards (for example, by being in a high-risk business category)


ACH payments have the lowest processing fees of any payment method. If you use a flat-rate provider, processing ACH payments will cost your company far less than processing credit cards.

Unlike credit and debit cards, there aren’t any deadlines for checking accounts. As a result, you will deal with fewer declines.

The primary advantage of ACH is convenience. You don’t have to remember to mail payments after you’ve set it up. In addition, you do not incur fees if you pay on time.

The names of the payees display on your bank statement, making it simple to keep track of transactions. You also eliminate the possibility of payments being lost in the mail.

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