How to Set Up an ACH Payment

To set up an ACH payment, you need to link your bank account, verify it, and collect customer authorization before enabling ACH as a payment option on invoices or checkout. This method lets businesses receive funds directly from client bank accounts, cutting down on fees and simplifying reconciliation compared to credit cards.

Choose How You’ll Accept ACH Payments

The first step is deciding the method you’ll use to receive ACH transfers. You generally have three options:

• Direct through your bank
  
  • Works best for large companies that already have treasury services.
  • Lower third-party fees but requires more manual setup.
    
• Payment processors (Stripe, Square, PayPal, etc.)
  
  • Handles bank verification, tokenization, and compliance for you.
  • Easier to integrate with invoices, CRMs, and websites.
    
• Specialized invoicing or payment platforms (like DepositFix)
  
  • Plug-and-play option that lets you accept ACH without custom coding.
  • Great for contractors and service providers who want automation.

Example: If you run a consulting firm, using a processor like Stripe through DepositFix can let clients pay invoices directly via ACH with just a few clicks.

Verify Your Bank Account

Before you can accept ACH, you need to link your receiving bank account. Verification ensures you own the account where the money will be deposited.

Common methods:

• Micro-deposits: The system sends two small deposits (like $0.12 and $0.34). You confirm the amounts.
• Instant verification (Plaid or similar): Customers log in to their bank securely and the system verifies on the spot.
• Manual verification: Some banks may require a voided check or business documents.

Tip: Keep your business EIN, incorporation documents, and proof of address handy — processors often need them for KYC (Know Your Customer) compliance.

Decide on the Type of ACH Payments

Not all ACH payments are the same. You’ll want to decide what works best for your business model.

• ACH Debit (pull): You initiate the payment from the customer’s account once authorized. Best for invoices and subscriptions.
• ACH Credit (push): The customer sends money to you from their bank. Best if clients prefer to control payments.

You can also set up:

• One-time ACH debits for project-based invoices.
• Recurring ACH debits for monthly retainers or subscription services.

Example: A cleaning company could set up recurring ACH debits so clients are automatically billed $200 each month.

Collect Customer Authorization

By law, you need your customer’s permission before pulling money from their bank account. Authorization can be written, electronic, or verbal (with a record).

A valid ACH authorization should include:

• Customer’s name and bank account details.
• Amount and frequency of payments.
• Date of authorization.
• Cancellation terms.
• Signature (or e-signature).

Sample authorization clause:

I authorize [Your Business Name] to debit my bank account for invoice payments. This authorization will remain in effect until I cancel it in writing.

Pro tip: Most payment platforms automatically capture and store this authorization for you.

Enable ACH on Invoices or Checkout

Once your account is verified and authorization is in place, you need to let customers choose ACH as a payment method.

• Enable ACH in your payment processor settings.
• Add a “Pay by Bank (ACH)” button to invoices.
• Explain how ACH works (e.g., “Funds will be debited directly from your bank account”).

Example Invoice Section:

This way, clients are encouraged to pick ACH over credit cards, saving you fees.

Understand Fees and Settlement Times

One of the biggest advantages of ACH is lower processing costs compared to credit cards.

Quick Comparison Table:

Tip: Always check your provider’s settlement schedule — Stripe, for example, usually deposits funds within 2–3 business days.

Reconcile Payments with Your Accounting

ACH transactions need to be matched in your books just like other payments.

• Use processor reports (CSV exports, QuickBooks sync, etc.) to match ACH deposits to invoices.
• Record processing fees separately under “Payment Processing Fees.”
• Always reconcile deposits to the bank deposit date, not the invoice date.

Example workflow:

• Invoice #101 paid via ACH on Sept 15 → Processor deposits funds on Sept 17 → You record deposit as Sept 17 in your accounting system.

Handle Failed or Returned ACH Payments

ACH payments can fail for reasons like insufficient funds, wrong account number, or revoked authorization.

What to do:

• Your processor will notify you of the return.
• Reach out to the customer immediately.
• Offer alternative payment methods if necessary.
• Apply return fees if stated in your contract.

Example Message to Client:

Your ACH payment for Invoice #202 was returned due to insufficient funds. Please update your bank details or provide another payment method.

Stay Secure and Compliant

ACH payments are regulated by NACHA, and compliance is a must.

• Never store raw bank account numbers. Use your payment processor’s secure vault.
• Retain authorizations. Keep records of all customer agreements.
• Stay transparent. Always disclose payment terms and fees on invoices.
• Limit access. Only authorized team members should see payment-related data.

Bonus: Use DepositFix to Accept ACH (recommended for service businesses)

If you want a simple path to accept ACH on invoices, DepositFix lets you:

• Add a “Pay by bank (ACH)” option to invoices and checkout pages.
• Let customers verify bank accounts (micro-deposits or bank-link where supported).
• Automatically map payments to invoices and export payout reports for reconciliation.
• Reduce manual entry and get paid faster while keeping fees lower than card processing.

Try DepositFix if you want ACH on invoices without building a custom integration.