Compare ACH payment processors for small businesses

If you run a small business, chances are you’ve heard about ACH payments — but figuring out the best way to accept them can feel a little overwhelming.

ACH lets you move money straight from one bank account to another, which can save you (and your customers) time and money compared to credit cards. The tricky part is deciding which ACH payment processor makes the most sense for your business.

Here are a few options worth knowing before you decide.

What are ACH merchant services?

Automated Clearing House (ACH) merchant services are digital solutions that allow businesses to accept payments via electronic drafts or eChecks directly to their merchant bank account from a customer’s or vendor’s checking account.

A few common small business merchant services that you may have heard of include Stripe, Square, and Shopify.

Types of ACH merchant services

There are several ways that merchants can accept direct electronic payments over the ACH Network. The most common ACH processing solutions are are:

• Standalone ACH processor: These providers are for businesses that don’t accept credit card payments (such as cannabis companies) and only need ACH or eCheck processing services. 
• Merchant services provider (MSP): If you use a company to manage your debit and credit card processing, the MSP will probably offer an ACH processing service, either included in your plan or as an add-on. 
• Payment service provider (PSP): A PSP works by making a merchant account on behalf of many merchants as an aggregator. This way, your business doesn’t need to be underwritten separately for a dedicated merchant account in order to process ACH or credit card payments. 
• High-risk processor: There are several industries that have high chargeback rates, which makes them high risk for payment processing services. A high-risk processor is made specifically for these industries and will provide added protection for ACH transactions in terms of fraud prevention and anti-chargeback features. 

What to look for in ACH merchant services

Before you sign up with an ACH merchant services provider, there are a few things you want to consider. The best ACH payment processing service will meet your business’s needs while being cost-effective and easy to use.

1. Cost of ACH processing

Pricing is something that all business owners want to take into account when finding the right ACH payment solution. ACH processors can charge a number of processing fees, from a monthly fee of $15-$30 to a percentage or flat fee per transaction. Some may also charge a set-up fee, plus fees for declined ACH transfers or disputed transactions.

It’s a good idea to check for processing rates. If you already have a credit card processing company that handles other electronic payment methods for you, it may include ACH processing at no additional cost. Be aware that your ACH transaction fee should generally be lower than your credit card transaction fee. 

2. Ease of use 

As with other payment processing methods, ideally you’ll be able to set it and forget it. You want to make sure that the solution you choose has all the functionality you need, like the ability to accept both one-time ACH payments and recurring payments and bank transfers. Access to payment gateways and virtual terminals so that you can manually input ACH transfers are both important.

And if you’re an ecommerce business, you’ll probably want features like an integrated shopping cart or website services. Customer service is particularly important in case you have an issue with recurring billing or chargebacks. The right tool for your business will also give you reporting features so you can analyze your revenue.

3. Integrations with business software

The best ACH merchant services solutions will work with your other business software, especially your point of sale (POS) system, so you can accept payments directly. In fact, many ACH processing services are included in POS systems.

You’ll also want a system with a good application programming interface (API), which will allow you to work with other computer systems, such as those at the financial institutions involved in the transactions. Ideally your system will integrate with your accounting software, such as QuickBooks, so you sync up your accounting and bookkeeping with your sales and payments. 

4. Data security and safety

As with any type of payment that takes personal information, whether it’s online payments or in-person, you need to make sure that your ACH transfer management solution keeps your customers’ data (and yours!) safe and secure.

The best ACH processors will be compliant with standards like the Payment Card Industry Data Security Standard (PCI DSS) and guidelines set forth by the National Automated Clearing House Association (NACHA). 

How to set up ACH billing and payment processing

Setting up payment processing solutions can be simple with the right payment processing service. There are a few basic steps you’ll need to follow:

1. Set up your merchant bank account, which will be your ACH account (find out more about business checking accounts here).
2. Select your ACH payment processor (this can also be your credit card processor).
3. Apply and fill out any necessary paperwork.
4. Determine what types of ACH payments you’ll be using (eCheck, paper check conversion, web, telephone) and their entry classes.
5. Carefully review all ACH terms and conditions.

Your bank or financial institution may provide ACH payment processing services as part of your business bank account, so you may be able to receive direct deposits without having to do much set up. 

Compare ACH payment processing services

The top ACH payment processing services for you will meet your business needs. Check out a few of these for ideas.

Great for accounts payable

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Melio Accounts Payable and Receivable

Melio is a digital B2B payment platform that saves business owners time and improves their cash flow. There are no subscription fees and ACH to ACH is free. By choosing exactly how to pay and get paid, businesses stay on top of invoices for good. Now, they can spend more time with their customers and less time with their books.

Key Features

• Receive bank transfers
• Accept credit card payments
• Instant payout (same day bank transfer)

Cost/Fees

• Credit or debit card: 2.9% fee to you or payor
• Same day bank transfer: 1%

Types of Businesses Supported

• Businesses that invoice their customers
• Businesses with accounts payable invoices

Sell online, in-person, and everywhere in between

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Shopify

One platform that lets you sell wherever your customers are — online, in-person, and everywhere in between. It’s never been easier to set up your own online store and bring your brand to life with everything you need to sell online, and get an integrated POS system with everything you need to create seamless shopping experiences between your online and retail storefronts.

Key Features

• Integrated e-commerce & retail
• Creation your online store
• Marketing tools
• Inventory management

Cost/Fees

• Starts at $39/month
• 2.9% + 30¢ USD online
• 2.7% + 0¢ USD in person

Types of Businesses Supported

• E-Commerce
• Retail

Large selection of POS hardware

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Square

Accept payments quickly, easily, and securely. Meet customers where they are with the latest payments services. Square can help you process nearly any kind of payment, any way you want. Millions of brands of all sizes trust Square to accept payments, build customer relationships, and grow their business in-store and online.

Key Features

• POS systems
• Online store
• Inventory management
• Invoicing
• Loyalty program
• Gift cards

Cost/Fees

• Card present: 2.6% + 10 cents
• Card not present: 2.9% + 30 cents
• Keyed in: 3.5% + 15 cents

Types of Businesses Supported

• Food & beverage
• Retail
• Beauty
• Services
• and more

Simple flat-rate pricing

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Stripe

Simple flat-rate pricing: Stripe offers a clear, straightforward fee per transaction, eliminating the complexity of tiered pricing structures. Wide range of payment options: Supports all major credit and debit cards, mobile wallets, and international payment methods. No setup or monthly fees: Businesses pay only for the transactions they process, with no additional setup or recurring charges.

Key Features

• Simple Flat-Rate Pricing
• Wide Range of Payment Options
• No Setup or Monthly Fees

Cost/Fees

• Standard pricing starts at 2.9% + C$0.30 per successful charge for domestic cards
• Monthly fee $0.00

Types of Businesses Supported

• Retail
• Restaurants
• Professional Services
• E-commerce
• Healthcare
• and more

Nav’s verdict

Every small business will have its own business needs when it comes to ACH processing. If you already have a POS system or payment processor that can facilitate ACH payments for you, that may be the simplest and easiest way to start accepting ACH payments. You can learn more in our guide to ACH payment processing.

Frquently asked questions

What ACH is best for business services consultants?

The best ACH payment processing service will depend on your specific business needs. Often a business services consultant can receive ACH payments through their business bank account for free, which can make it easy to use. If you wish to receive payments through credit card or debit card, you may have to find another payment processing service. 

What’s the difference between ACH and wire transfer payments? 

ACH payments go through a clearing house and can include eChecks, direct deposits, debit transactions, and electronic funds transfers (EFTs). A wire transfer is done directly between financial institutions and can be much faster than an ACH, but it may be more expensive.