ACH payments are a type of electronic bank-to-bank payment. The ACH (or Automated Clearing House) network facilitates that transfer of money from one U.S. bank account to another. It is similar to a wire transfer, paper checks, or moving cash between accounts, except bank-to-bank transfers are much faster and less expensive than a wire transfer.
Which Industries Benefit from ACH Payment Processing?
ACH payments are widely used across industries for their affordability, reliability, and ease of automation. Here are just a few examples of how different sectors benefit:
Professional Services
Attorneys, consultants, and accountants use ACH to collect retainers or invoice clients on a recurring basis.
Healthcare
Clinics and private practices accept co-pays or set up automated payment plans for patients via ACH debits.
Property Management
Landlords and property managers use ACH to collect monthly rent without processing paper checks.
Nonprofits
Charitable organizations simplify donations with recurring or one-time ACH contributions.
Payroll Providers
Businesses and payroll platforms rely on ACH for direct deposit of wages to employees, often with same-day or next-day delivery.
Understanding Direct Deposits, Direct Payments, and ACH Payment Flows
ACH transactions fall into two primary categories: direct deposits and direct payments, both of which can be processed as either ACH credits or ACH debits. Direct deposits typically involve pushing funds into a recipient’s bank account—employers sending paychecks, government agencies distributing tax refunds or benefits, or businesses disbursing reimbursements are examples. These transactions are almost always initiated by the payer and are an everyday use case for most consumers.
On the other hand, direct payments are initiated to move money between individuals, businesses, or both, often for things like bill payments, product purchases, or donations. Depending on who initiates the transaction, a direct payment can either be an ACH credit (pushing funds) or an ACH debit (pulling funds with authorization). ACH debits are especially valuable for businesses looking to collect recurring payments, settle overdue balances, or simplify customer billing. Together, these mechanisms make ACH payments a versatile and efficient method for both sending and receiving money in a variety of business and personal contexts.
How Long Does it Take to Process a Bank-to-Bank Transfer?
ACH payment timing depends on the type of processing used, and businesses can choose between speed and cost-efficiency based on their needs. While standard ACH transfers are reliable for everyday use, faster options like same-day and instant ACH are available for time-sensitive payments. Here’s how each option works:
- Standard ACH – Most transactions settle within 1–2 business days after initiation.
- Same-Day ACH – Available for eligible payments submitted before daily cutoff times. Funds often arrive on the same business day.
- Instant ACH – Some providers offer near-instant settlement for a premium fee, though availability depends on participating banks.
How Much Does an ACH Payment Cost?
ACH payments are known for their affordability, with typical fees ranging between $0.20 and $1.50 per transaction depending on volume, payment provider, and whether the business connects directly or through a third-party processor. In contrast, credit card processing fees typically range from 2.5% to 3.5% of the total transaction amount, making ACH a significantly more cost-effective option, especially for larger or recurring payments.
While some large enterprises choose to obtain direct access to the ACH network, this route can be complex and expensive due to regulatory overhead, staffing requirements, and technical infrastructure. Most businesses instead opt to work with a third-party payment processor like Aurora Payments, which provides simplified access to low-fee ACH payments, fast onboarding, and transparent pricing, all without the need for extensive internal resources.
Are ACH Payments Safe?
Yes, because ACH transfers are built on a secure and regulated system operated by the ACH Network, which is governed by the National Automated Clearing House Association (Nacha). Nacha sets and enforces the rules that every participating financial institution, business, and processor must follow to ensure safe, consistent, and compliant transactions across the U.S.
While Nacha doesn’t process payments directly, it plays a vital role in maintaining the integrity of the network. Payments move securely between bank accounts using strict protocols, including bank-level encryption, digital authentication, and fraud detection practices. Compared to credit cards, ACH presents lower fraud risk and fewer chargebacks, and all transfers are digitally recorded, providing an auditable trail that supports reconciliation and dispute resolution.
Why Should You Accept ACH Payments?
ACH is no longer a niche payment method—it has become a critical component of the U.S. financial system. In 2024, the ACH Network processed over 33.6 billion transactions, totaling more than $86.2 trillion, according to Nacha . This growth reflects rising adoption across industries for use cases like direct deposits, recurring billing, and B2B payments and highlights increasing demand for fast, low-cost alternatives to checks and wire transfers.
If your business collects payments from customers, clients, or partners, accepting ACH payments can offer significant advantages. ACH is especially beneficial for recurring billing, large transactions, and businesses looking to cut down on processing fees while improving payment reliability. Whether you’re a service provider, subscription business, nonprofit, or property manager, ACH is a flexible and low-cost solution that helps streamline operations and get you paid faster.
Benefits of accepting ACH payments include:
- Lower transaction fees compared to credit cards and wire transfers
- Faster settlement options with same-day or instant ACH
- Improved cash flow forecasting
- Ideal for recurring payments, subscriptions, and invoices
- Reduced manual processing and paperwork
- Secure, bank-to-bank transfers with digital tracking
- Easily integrated with accounting and billing systems
- Helps reduce late or missed payments through automation
How to Set Up ACH Payments with Aurora
Aurora Payments makes all types of payment processing easier, including bank-to-bank transfers. And getting started your business set to accept with ACH payments is quick and flexible with us. Our customers enjoy:
- Fast onboarding – Most businesses are ready to accept ACH transfers within one business day.
- No-code or integrated tools – Use our standalone portal or connect with your existing systems.
- Custom branding – We offer a white-labeled ACH experience for clients and customers, helping to reinforce your brand.
- Flexible billing support – Set up one-time invoices, recurring billing, or payment plans to suit your business model.
If you have an in-house development team or SaaS platform, Aurora offers API-based ACH integration to streamline your payment workflows. Developers can connect ACH functionality directly into your app or back office system, supporting real-time status updates, recurring billing, and secure bank account tokenization. We also offer no-code options for non-technical teams, ensuring everyone can benefit from ACH without added complexity.
FAQs About ACH Payments
Can I accept ACH transfers from customers without a website?
Yes, Aurora provides no-code portals and invoice links that allow you to collect ACH payments without a website.
How long do ACH payment returns or chargebacks take?
ACH returns for insufficient funds (return code R01) typically occur within 2–5 business days. Unauthorized returns (return code R10) may be filed by the customer up to 60 days after settlement.
Are ACH bank-to-bank transfers reversible?
Yes, but only under specific conditions. Customers can dispute unauthorized debits, and businesses must follow Nacha guidelines to respond.
What’s the difference between ACH payments and eChecks?
An eCheck is essentially a type of ACH debit that uses the customer’s routing and account number. The terms are often used interchangeably.
Can I use ACH for international payments?
ACH payments are primarily designed for transactions within the United States and U.S. territories. While it is technically possible to send International ACH Transactions (IATs), they are subject to strict compliance requirements, including screening by the Office of Foreign Assets Control (OFAC). Due to these complexities and slower processing times, most cross-border payments are better handled using wire transfers or international payment rails. However, if you’re working with U.S.-based accounts owned by international entities, ACH may still be a viable and cost-effective option.
Get Started with ACH Payments
Ready to reduce fees and get paid faster? Contact Aurora Payments and discover why you should accept ACH payments to lower transaction fees, improve cash flow forecasting, and increase payment processing security for your business.
Email sales@risewithaurora.com to learn more and schedule a demo.
