How do I accept ACH payments from customers? (2024)

FAQs

How do I accept ACH payments from customers? ›

To receive an ACH payment, you need to provide your bank's routing number and the account number for the checking or savings account you want the money deposited into. With some companies, you may also need to sign an ACH authorization form; your client should provide that if it's required.

An ACH transfer is an electronic transfer of funds from one bank account to another over the ACH (Automated Clearing House) network. This includes everything from person-to-person transfers and bill payments to direct deposits.

To receive an ACH payment online, all you need to do is provide your bank's accounting and routing number corresponding to the checking or debit card where you'd like to receive the money deposit. In some cases, you may need to sign an ACH authorization form to accept the online money transfer.

The cost of accepting ACH payments varies depending on a number of factors. The median internal cost for processing ACH payments is $0.29. However, the total cost associated with accepting ACH payments varies depending on a number of factors.

Your bank account details remain with your financial institution and are not sent to the payee. With ACH debit, you establish the transaction with the payee. In this situation, you submit your payment details (including account and routing numbers) to the payee.

You can find your ACH routing number by: Searching online for “ACH routing number” and your bank's name. Logging in to your online banking platform. Looking in your checkbook (it's typically located next to your account number)

Most US banks and other FIs (financial institutions) including credit unions allow ACH transfers. To send and receive ACH payments, an FI must be part of the ACH (Automated Clearing House) network, which is governed by Nacha.

If you accept ACH payments by telephone, NACHA requires that you receive and record verbal consent from your customer. Under some circ*mstances, you may obtain verbal consent from your customer without recording it, but you must follow up with a confirmation of their consent immediately after the transaction.

Is Zelle an ACH transfer? ›

Basically, all Zelle payments are (instant) ACH payments but not all ACH payments are Zelle payments. The primary difference between Zelle and regular ACH payments is related to speed—whereas a standard ACH payment can take 2-5 days to clear, Zelle payments tend to clear in minutes.

There are two ways to make ACH payments. One option is to set up ACH Debit by providing your bank account details and authorization to the organization taking the payment. Alternatively, you can make an ACH Credit payment electronically from your bank account, using the banking details of the recipient of the funds.

Let them know how the problem can be avoided with an ACH payment. (Bonus recommendation) Provide instruction on how to pay by ACH. Leverage the one communication your customer probably pays attention to: the bill or invoice. Lobby to have clear ACH payment instructions provided on bills/invoices and your website.

Are ACH transfers reported to the IRS? The IRS doesn't count ACH transfers as cash, so they are not reported.