On a $5,000 invoice, a credit card payment might cost you $150 in processing fees. The same payment by ACH bank transfer could cost less than a dollar. That's not a typo — it's just a different set of rails.
ACH is the electronic network American banks use to move money between accounts — the same system behind direct deposit and automatic bill pay. For the right kinds of payments, it's dramatically cheaper than cards. Here's when it makes sense, when it doesn't, and how to start accepting it.
Why ACH is so much cheaper than cards
Card fees are percentage-based because every transaction routes through card networks and issuing banks, each taking a cut — that's the interchange system. ACH skips all of it. Payments move directly between bank accounts through the ACH network, and pricing is typically a flat fee per transaction — often somewhere between $0.25 and $1.50 — or a small capped percentage.
On small tickets, the difference barely matters. On a $40 sale, saving a dollar in fees is nice. On a $8,000 invoice, the difference between 3% and a flat fee is over $230 — per invoice.
Where ACH shines
Large invoices
Contractors, wholesalers, professional services — anyone regularly billing four or five figures. This is where percentage-based card fees hurt most and ACH saves the most.
Recurring billing
Rent, retainers, memberships, service contracts. Bank accounts don't expire the way cards do, so ACH autopay fails far less often than card-on-file billing.
B2B payments
Businesses are comfortable paying by bank transfer, and many prefer it. Pair ACH for the biggest invoices with Level 3 processing for the card payments you still take, and your effective cost drops on both fronts.
The trade-offs to know about
It's slower
Standard ACH settles in one to three business days, and unlike a card authorization, you don't get an instant guarantee the funds are there. Same-day ACH exists but costs more.
Payments can bounce
An ACH payment can return for insufficient funds days after you initiated it — more like a check than a card. For new customers on big invoices, that's worth managing.
No rewards incentive for the payer
Some customers want their card points. The fix is simple: offer both, and let the pricing reflect the cost difference where your state allows it.
How to start accepting ACH
Modern setups make ACH nearly as easy as cards: send an invoice or a payment link and let the customer choose "pay by bank," enter their credentials, and authorize the payment. No paper forms, no voided checks. For repeat billing, the customer authorizes once and payments run automatically.
If you're sending big invoices and only accepting cards, you're leaving real money on the table every month. Talk to us or call 718-702-0186 and we'll set up ACH alongside your card processing — so every payment takes the cheapest sensible route.