What is ACH?
ACH, or Automated Clearing House, is the network that moves electronic bank-to-bank payments in the United States. Instead of a card number, the customer authorizes a payment from their bank account number and routing number. The network is governed by rules from Nacha, and the way you collect authorization matters.
When ACH is a good fit
- Recurring payments where the amount is predictable, such as memberships, dues and rent.
- Larger payments where card fees add up.
- Customers who prefer not to use a card, or whose cards expire often.
- B2B invoices and balances paid over time.
ACH versus card payments
| ACH | Cards | |
|---|---|---|
| Funded from | A bank account | A card, via the card networks |
| Settlement speed | Slower, usually a few business days | Faster, often same or next day |
| Cost to accept | Often lower | Higher, set by interchange and networks |
| Best for | Recurring and large payments | Everyday and impulse purchases |
| Failure mode | Return for insufficient funds or closed account | Decline at the moment of sale |
Most platforms offer both and let the customer choose, because each method fits a different kind of payment.
What to know before offering ACH
Authorization matters. You need clear customer permission to debit an account, and the way you capture it is governed by network rules.
Payments take longer to settle than card payments. Plan your workflow around that, and set customer expectations about timing.
Returns happen. A payment can be returned for reasons such as insufficient funds or a closed account. Good software handles returns clearly and gives customers a way to fix them.
Fraud monitoring is part of the job. Nacha has introduced fraud monitoring requirements, and a good partner helps you meet them.
Recurring billing with ACH
Because ACH pulls from a bank account, it works well for recurring billing where the amount is predictable and the relationship is ongoing. Memberships, rent, dues, retainers and subscription plans all fit. Secure tokens let customers save a bank account and authorize repeat charges, so each cycle runs without the customer re-entering details and without your team chasing renewals.
ACH with linq
linq supports ACH alongside card payments, so your customers can choose the method that suits them and you can manage both in one place. ACH runs through the same payment gateway and reporting as cards, so reconciliation stays unified. Learn more about linq.
How Merchant Focus helps
We have helped businesses accept payments since 2004, including the recurring and bank-payment patterns ACH is built for. We help you design the authorization, return and retry flows that keep recurring revenue reliable, and we are upfront about the rules and timing so your customers are not surprised. If ACH is not the right fit for a given payment, we will say so.