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How Do Businesses Set Up and Accept ACH Payments?

19 July, 2022
4min read
Patrick Petti, AVP, Value Optimization
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What you'll learn

  • How to set up ACH payments for your business?
  • Why is ACH payment essential for your business?
  • Importance of ACH payments
Why are ACH payments important for your business?
What are the steps to set up ACH payments for your business?
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ACH (Automated Clearing House), also called “direct payments,” is a financial network for electronic payments, responsible for money transfers worldwide. The primary purpose of ACH payments is to transfer funds from one account to another electronically, eliminating the need for paper checks or cash.

The volume of ACH payments has increased hugely in the last few years. In 2021, the ACH network reported a total of $29.1 billion in payments. ACH payments have emerged as a preferred alternative to paper checks. It enables secure transactions, easier accounting, and scalability to your business operations.

Why are ACH payments important for your business?

Statistics on the number of ACH Network Payments done in 2021

Completing an ACH payment takes only half the time needed for making a check payment. You also don’t need to go through the hassles of writing, stamping, and mailing the checks physically.

An added advantage of ACH payments is that the processed payment is immediately reflected in your bank account, thus streamlining the account reconciliation process.

The following points explain other benefits of using ACH payment for your business:

  1. Cost-effective

    ACH payments are processed in batches. This reduces the rate per transfer, making it less costly than payments made via credit or debit card.

  2. More convenient than any other type of payment

    Transactions made via ACH payments are reflected in your bank account almost immediately, even if the actual processing may take 2-3 days to complete. This is faster and more convenient than paper check processing.

  3. Highly secure

    The ACH payments network is regulated with many layers of security. Reputed financial institutions directly manage the transactions, thus eliminating any chance of disputes regarding hidden charges.

What are the steps to set up ACH payments for your business?

ACH payments can accelerate your cash flow, irrespective of the industry you’re working in. Another benefit of ACH is its lower fee compared to other wire transfers.

While setting up ACH payments for your business, you should follow the below-mentioned steps for smooth and easy onboarding.

Step 1: Setup your account

Creating an ACH payment account is the first step to start receiving B2B ACH payments. However, before setting up your ACH payments account, you must choose the best payment processor to handle your transactions. You’ll need the following documents while filling out the setup form:

  • Proof of company address
  • Valid ID of the company owners
  • Federal tax ID
  • Estimated processing volumes

Step 2: Select an ACH payment processor

While choosing a suitable payment processor for your ACH payments account, consult with your bank regarding the processing charges. It is advised to compare different operators with the details of their features and choose the best one according to your need.

Step 3: Complete the paperwork and read all the terms and conditions

While filling out your business details, you’ll come across a lot of other terms and conditions of ACH payments. It is advised to read all the information carefully and proceed with caution. If you choose to partner with an ACH payments operator, you must comply with all the rules and regulations of the payments provider.

Step 4: Submit your payment details

After completing the necessary validity checks, the service provider will fetch your payment details. This is needed to get the required inputs into the system. The entire process can take up to 5 business days to get completed.


You need to introspect your business needs before selecting the best ACH payment processing provider. Here are some more important factors to consider when opting to provide ACH payment options to customers:<>

  • Carefully compare the features of each ACH payments provider, including their processing fees and chargebacks
  • Go for the most convenient website integration with a payment gateway
  • Ensure that the setup process is hassle-free for both you and your customers

How can we help?

Setting up ACH payments with HighRadius is easy, quick, and fully secure. We help you accept payments using the payment links embedded in the invoices sent via email. Our solutions enable you to provide a superior customer experience by offering flexible and unique payment methods.

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