Best ACH Payment Processing for Small Business: 2023 Guide
This article is part of a larger series on Payments.
ACH (automated clearing house) payments are direct bank-to-bank transactions made via the ACH network. Although approval time (two to seven days) is a big consideration, low transaction fees and high payment security make ACH payments popular among businesses of all sizes. ACH payment processors for small businesses should make it easy to accept ACH payments securely with low processing fees through invoices, payment links, or virtual terminals.
We’ve evaluated the top ACH payment processors and narrowed the list to the five best options for small businesses. The providers on this list offer other payment solutions but for this evaluation, we only considered their ACH payment processing services.
- Stripe: Best overall ACH payment processor
- Square: Best for invoicing
- Helcim: Best for virtual terminal and high-volume transactions
- GoCardless: Best standalone and international ACH payment service
- PaymentCloud: Best for high-risk merchants
Want to learn more about ACH payments? Here are some articles to read:
ACH Payment Processors Comparison
Monthly Fees | Add-on Monthly ACH Fees | ACH Processing Fee | Failed/Reject Fee | Dispute/Refund Fee | |
|---|---|---|---|---|---|
 | $0 | $0 | ACH Debit: 0.8% ($5 max) ACH Credit: $1 per payment | $4 | $15 |
 | $0 | $0 | 1% ($1 min) | $0 | $0 |
 | $0 | $0 | 0.5% + 25 cents ($6 max) | $5 | $5 |
 | Starts at $0 | $0 | 1% + $0.25 ($2.50 max) + 0.3% for amounts above $1,000 | $4 | $4 |
 | $10–$45 | $0 | 0.5%–1.5% | $2–$5 | $5–$25 |
Note: GoCardless has different fees for different countries. The rates reflected are for US merchants.
ACH Failed Transaction vs ACH Dispute
Unsuccessful ACH payments can occur during authorization or after the amount has been debited from the customer’s account. The authorization period is when bank details are submitted, and the ACH network verifies that the amount is available in the customer’s account. A failed/rejected ACH transaction occurs if this process is unsuccessful.
If the transaction is approved and the amount is received by the merchant, the customer may dispute it through their bank for up to 60 calendar days for personal accounts or up to two calendar days for business accounts. Some providers, like Helcim, charge different fees for the two types of transactions, while others, like Square, charge the same amount.
Invoicing/ Recurring Payments | Virtual Terminal | Approval Times | Notable Features | |
|---|---|---|---|---|
| ✓ | ✕ | Up to 4 days |
|
| ✓ | ✕ | 3–5 days |
|
| ✓ | ✓ | 3–4 days |
|
| ✓ | ✕ | 2–3 days |
|
| ✓ | ✓ | Instant |
|
The organization that manages the ACH network is the National Automated Clearinghouse Association, also known as Nacha.
Looking for a way to accept credit card payments instead? Read our guide on how to accept credit cards online.
Stripe: Best Overall ACH Payment Processor
Overall Score:
4.50 / 5
Pros
- Highly customizable platform
- ACH reconciliation
- Accepts ACH Credit
Cons
- Requires some technical expertise and resources
- Has add-on rates for invoicing and recurring billing
- Limited to US merchants and customers
What we like:
Stripe is a highly flexible and customizable payment processing platform. It has a range of powerful tools to help small businesses manage their payments. It’s the only provider in this guide that supports both ACH debit and credit while also offering ACH reconciliation to help businesses streamline their accounting processes. Stripe’s automatic reconciliation feature makes it easy to match payments to invoices, saving time and reducing the risk of errors.
Its wide range of payment solutions has earned Stripe a place in several of our guides:
- Monthly Subscription: $0
- ACH Payment Processing
- Add-on monthly fee: $0
- ACH Debit Processing fee: 0.8%, maximum of $5 per transaction
- ACH Credit Processing fee: $1.00 per payment
- ACH reject/failure fee: $4
- ACH dispute/refund fee: $15
- Other Fees
- In-person: 2.7% + 5 cents
- Online: 2.9% + 30 cents
- Keyed-in: 3.4% + 30 cents (card payment details are manually entered in the Stripe dashboard)
- Invoicing: From 0.4%–0.5% per transaction (on top of transaction fees)
- Recurring billing: 0.5%–0.8% per transaction (on top of transaction fees)
- Accepts ACH payments via invoicing, payment links, and checkout pages
- Allows saving of customer’s ACH bank details for recurring payments
- Has bank account verification to reduce fraud and stay compliant with NACHA validation rules
- ACH Direct Debit may be added as a payment option to any of Stripe’s integrations
- Offers options to instantly verify the customer’s bank details (requires coding skills)
- Creates US virtual bank accounts for each of your customers for easy automatic reconciliation of ACH credit payments
- Automatic reconciliation also allows customers not to provide any bank details and to pay in multiple transactions
- Allows ACH refunds directly from the Stripe Dashboard
Stripe is always a strong contender in many of our guides, and it was no surprise that it performed just as strongly for ACH payment processing. It is flexible when it comes to accepting ACH payments as it allows this payment method via invoicing, payment links, and checkout pages, whereas Square accepts ACH payments via invoicing only.
Among the most robust ACH payment features that Stripe offers are automatic reconciliation and the ability to accept ACH credit transfers, which are ACH payments initiated or pushed by the customer to the merchant. No other provider on this list provides these features.
Like most providers on this list, it does not charge any extra monthly fees for accepting ACH payments. However, Stripe has add-on invoicing and recurring billing rates, around 0.4% to 0.8%.
In our evaluation, Stripe scored 4.5 out of 5 and only lost a few points for its ACH reject and dispute fees and ACH approval/settlement times—while both are within industry standards, they are not the lowest or fastest you can find. If you want zero fees for failed and disputed transactions, Square is the better option, while for deposit speeds, PaymentCloud offers instant payouts.
Square: Best for Invoicing
Overall Score:
4.09 / 5
Pros
- Affordable pricing
- No ACH reject/chargeback fee
- Easy to use
Cons
- Accepts ACH payments only through invoices
- Does not support Level 2 or 3 processing
- No cap on processing fee
What we like:
Square is a very popular all-in-one payment solution, and it also performed well in our evaluation of ACH payment processors (although it only accepts ACH payments via invoice). It does not charge any monthly fees for accepting ACH payments and charges a low, flat fee of 1% for every ACH transaction. While other third-party processors typically charge for failed or rejected ACH payments, Square does not, making it a very affordable option for small businesses processing low amounts for ACH transactions through invoicing.
It is also a top pick in our other guides:
- Monthly Subscription: $0
- ACH Payment Processing
- Add-on monthly fee: $0
- ACH Processing fee: 1%, minimum of $1 per transaction
- ACH reject/failure fee: $0
- ACH chargeback fee: $0
- Other Fees
- Card-present: 2.6% + 10 cents
- Ecommerce and invoice: 2.9% + 30 cents
- Card-not-present: 3.5% + 15 cents
- No monthly fee and flat ACH processing rate
- Allows ACH payments through invoicing only
- Does not charge fees for failed/rejected ACH transactions
- Send and track invoices and automatic payment reminders to customers
- Approval and settlement times take around 3 to 5 days
With an overall score of 4.09 out of 5, Square is an easy and affordable option for ACH payment processing. Although Square has no cap on the ACH fee paid on every transaction, it could be the most affordable option for small businesses that do not process high transaction amounts. For transaction amounts lower than $50, Square beats Helcim when it comes to processing fees. Square’s zero return/failed fees could mean significant savings for smaller merchants.
The drawback with Square is that, unlike the top option, Stripe, it can only accept ACH payments via invoicing. Also, the approval time for ACH transactions could take three to five days. Businesses processing larger ACH payments per transaction would pay less with a different provider like Helcim because Square does not have a cap on ACH processing fees per transaction. Nevertheless, Square is a solid option for small businesses seeking an affordable, easy-to-use ACH payment service.
Helcim: Best Virtual Terminal for ACH Payments & High-volume Transactions
Overall Score:
4.09 / 5
Pros
- Accepts ACH payments via invoicing, recurring invoicing, subscription, email and SMS payment requests, and virtual terminal
- Comes with a traditional merchant account
- Low ACH fees
Cons
- Has a $5 return and chargeback fee
- Does not support high-risk businesses
- More expensive for transaction amounts lower than $50
What we like:
Helcim is an easy-to-use and versatile payment processor that offers various options for accepting ACH payments. Many providers only allow ACH payments via invoicing, but with Helcim, businesses can use the virtual terminal to accept ACH payments. It also comes with a traditional merchant account, unlike other no-monthly-fee processors that only provide an aggregated merchant account. Despite Helcim’s $5 fee for returned or failed ACH transactions, its low processing rate and $6 cap make it one of the most affordable options, especially for businesses that regularly process large amounts for every transaction.
You will also find Helcim among our different guides:
- Monthly Subscription: $0
- ACH Payment Processing
- Add-on monthly fee: $0
- ACH Processing fee: 0.5% + 25 cents, maximum of $6 per transaction
- ACH reject/failure fee: $5
- ACH chargeback fee: $5
- Other Fees
- Card-present: Interchange + (0.3% + 8 cents to 0.10% + 5 cents)
- Keyed and Online: Interchange + (0.50% + 25 cents to 0.20% + 10 cents)
- 24/7 customer support
- Accepts ACH payments through invoicing, recurring payments, subscriptions, QR codes, email and SMS payment requests, and virtual terminal
- Includes a traditional merchant account
- Low interchange-plus pricing for card processing
- Tracks ACH payments together with all forms of transactions, including POS, online, mobile, and virtual terminal payments within the same platform
- Strong security and fraud protection tools
Helcim’s score is tied with Square’s 4.09 out of 5. But while Square only allows ACH payments through invoicing, Helcim offers it via multiple methods, including its virtual terminal. When accepting an ACH payment through the virtual terminal, merchants need to enter their customer’s bank details on the terminal, and the customer will receive an email for authorization of the current transaction and future transactions. This process makes charging regular customers for future transactions easy and convenient.
Businesses that process high amounts of ACH payments per transaction will find Helcim to be an affordable option despite its return fee. There is a cap of $6 on the processing fee for every ACH transaction, meaning any transaction above $1,150 will have a flat processing fee of $6. However, if your business often processes transaction amounts lower than $50, Square is a less costly option.
GoCardless: Best for Standalone ACH & International ACH Processing
Overall Score:
3.88 / 5
Pros
- Transparent, affordable pricing
- Accepts international ACH payments
- Easy to set up and use
Cons
- Only processes ACH payments
- Add-on rates for transactions above $1,000
- Slow payouts
What we like:
GoCardless is an ACH-only payment solution that offers affordable processing fees. It is the only provider on this list that can accept international ACH payments. While finding pricing information for other standalone ACH payment processors is difficult, GoCardless provides easy-to-find information on their pricing and services through their website. It has a low $2.50 cap for transaction amounts lower than $1,000.
The platform is intuitive and easy to use, so small businesses who are looking for an ACH-only payment solution will find GoCardless a suitable option.
- Monthly Subscription: Starts at $0
- ACH Payment Processing
- ACH Processing fee: 1% + 25 cents, maximum of $2.50 per transaction, additional 0.3% for transactions above $1,000
- International ACH Processing fee: 2% + 25 cents
- Plus package: +$25 per month (includes merchant name on bank statements and customization of payment page)
- Pro package: +$75 per month (includes use of API to develop your own payment page or integrate with your existing checkout)
- ACH reject/failure fee: $4
- ACH chargeback fee: $4
- Accepts international payments
- Collects ACH payments via online form, email, or payment link
- Integrates with various accounting and billing systems for automatic reconciliation
- Sends automatic customer notifications for every transaction
- Offers discounts for high-volume businesses (contact the GoCardless sales team)
- Has paid plans that come with added customizations such as branded payment pages and your business name on bank statements
- Provides migration assistance for those moving from another provider
GoCardless only supports ACH payments, while the other providers on this list also offer card processing. This limitation makes GoCardless ideal for businesses that only need ACH payment processing or those that want to keep ACH payments separate from their card processing. For those that want to use GoCardless with their existing card processor, GoCardless has payment integrations to do this. Its pricing is very competitive with its low $2.50 cap. However, for transactions above $1,000, it charges an additional 0.3% processing fee. Keep in mind that GoCardless has a different set of fees for different locations. The rates discussed here are for merchants located in the US.
One of GoCardless’ most significant advantages is its ability to accept international ACH payments—the only provider on this list that offers this feature. Although Stripe is well-known for international payments, it only allows ACH payments for US merchants.
GoCardless offers a Standard plan with no monthly fees but has minimal customization options. If you want your business branding on your payment pages or your business name to appear on your customers’ bank statements, you must upgrade to the higher-paid plans.
PaymentCloud: Best for High-risk Merchants
Overall Score:
3.78 / 5
Pros
- Supports high-risk merchants
- Offers instant ACH transfer
- Accepts ACH payments for online, MOTO, and mobile transactions
Cons
- No publicly disclosed pricing on the website
- Has a monthly fee
- Lengthy and comprehensive application process
What we like:
PaymentCloud is a top choice for high-risk merchants looking to accept ACH payments. Its specialized services cater to businesses operating in industries such as travel, gaming, and ecommerce, typically deemed high-risk by traditional payment processors. While the other providers on this list offer anywhere from two to five days for payment approval or settlement, PaymentCloud has instant ACH transfers, allowing you to instantly verify customer bank accounts and receive a direct deposit into your bank account.
It is also included in our other guides:
- Monthly Subscription: $10–$45
- ACH Payment Processing
- ACH Processing fee: 0.5%–1.5%
- ACH reject/failure fee: $2–$5
- ACH chargeback fee: $5–$25
- Virtual terminal: $15–$45 per month
- Other Fees
- Card processing fees: 2%–4.3%
- Specializes in high-risk merchants
- Custom pricing depends on the nature of the small business
- Instant ACH transfers
- Strong fraud prevention
- Offers a range of payment processing options aside from ACH payments
- Has Level 2 and 3 processing for B2B transactions
- Same-day setup upon account approval
- Accepts ACH payments through its virtual terminal
PaymentCloud earned an overall score of 3.78 out of 5 in our evaluation. It performed strongly for payment types but lost some points for pricing and contract. While other providers on this list do not charge monthly fees, PaymentCloud’s monthly fees range from $10 to $45, depending on your business’ risk category. It supports low-, mid-, and high-risk merchants, but high-risk merchants may be subject to a lengthier and more comprehensive application process and higher fees.
Aside from its high-risk merchant support, PaymentCloud’s most significant edge against other providers is its instant ACH transfers, where you get instant bank verification, and you can receive the amount instantly to your bank account.
Because of PaymentCloud’s less transparent pricing on the website, it is best to contact them for a more accurate assessment of your fees and requirements.
Methodology – How We Evaluated ACH Payment Processors
We looked for merchant services that offer affordable ACH payment processing. Then, we narrowed our evaluation to five of the most affordable and reputable payment processors and considered their different ACH processing fees and features.
We looked at monthly fees, add-on ACH fees, failed/reject fees, and settlement speed. Next, we looked for specific use cases like high-risk businesses. Finally, we considered real user reviews and ease of use.
At the end of our evaluation, Stripe was the best ACH payment processing for small businesses because of its price point, variety of payment types, and breadth of features.
Click through the tabs below for our specific evaluation criteria:
25%
Pricing and Contract
30%
Payment Features
25%
General Features
20%
Expert Score
25% of Overall Score
We gave the most points to payment processors that offer low or zero monthly fees, do not require contracts or monthly fees, do not impose account cancellation charges, and have low reject/return fees.
30% of Overall Score
We assessed whether each solution offers invoicing, payment links, recurring payments, virtual terminal, and ACH reconciliation. We also considered if the processor provides Level 2 or Level 3 processing.
25% of Overall Score
Here, we considered a range of functions essential for ACH payment processing, such as customer support, approval/settlement times, customer management features, security and compliance tools, and deposit speed.
20% of Overall Score
This combined our overall evaluation of price and ease of use with scores from real-world users on trusted third-party review sites.
*Percentages of overall score
ACH Payment Processing Frequently Asked Questions
ACH stands for automated clearing house, an electronic network that allows for the transfer of funds between bank accounts in the United States. ACH payments are a type of electronic funds transfer (EFT) that enables individuals, businesses, and organizations to send and receive payments electronically without the need for paper checks, wire transfers, or credit card payments. The ACH network is operated by the independent organization Nacha with defined ACH network rules and regulations.
ACH debit and ACH credit are two types of bank-to-bank transfers that can be processed through the Automated Clearing House (ACH) network. The key difference between ACH debit and ACH credit transactions for small businesses is who initiates the transaction: the merchant for ACH debit and the customer for ACH credit.
An ACH debit transaction is initiated by the merchant, who authorizes the transfer of funds from the customer’s bank account to the merchant’s bank account (upon getting the customer’s authorization). On the other hand, an ACH credit transaction is initiated by the customer, who authorizes the transfer of funds from their bank account to the merchant’s bank account.
To accept ACH payments from customers, you will need to sign up and set up an ACH payment processing service. Once you have chosen an ACH payment processor, you will need to enable ACH payments for your account and set it up based on your provider’s instructions.
Yes, there is typically a processing fee for ACH payments. The fee may vary depending on the payment processor or bank used to process the ACH transaction. Some processors charge a flat fee per transaction, while others charge a percentage of the transaction amount. Generally, ACH processing fees are much lower than typical card processing fees, so it allows businesses to save on transaction costs.
Bottom Line
ACH payments processing provides businesses an efficient, secure, and cost-effective way to get paid. When choosing an ACH processor, businesses should consider factors such as processing fees, transaction limits, ease of use, approval and payout speeds, and customer support.
Among the best ACH payment processing for small businesses, Stripe stands out as the best overall option due to its zero monthly fees, comprehensive ACH features, ACH reconciliation, competitive pricing, robust security and fraud protection tools, and excellent customer support.
