How to Use ACH Payment

To use ACH payment, set up an ACH-enabled processor and connect your bank account. Next, collect customer authorization, send invoices with ACH as a payment option, and process payments through the ACH network.

Understand What an ACH Payment Is

ACH payments move funds electronically between U.S. bank accounts through the ACH network. There are two main types:

• ACH Debit: You pull money from your customer’s account (for example, collecting an invoice payment).
• ACH Credit: You push money from your account to someone else’s (for example, paying a vendor or employee).

ACH payments are especially useful for:

• Subscription businesses with recurring billing
• Service providers who invoice clients monthly
• Contractors who want to avoid high credit card fees
• Vendors or suppliers who prefer direct deposits

Set Up ACH Payment Processing

To start using ACH, you need an ACH-enabled payment processor or banking solution. This allows you to collect and send payments directly from checking or savings accounts.

Steps to set up:

1. Choose a payment processor – Look for one that offers ACH support with low transaction fees (often $0.25–$1 per payment).
2. Connect your business bank account – You’ll need your routing and account number.
3. Verify your account – Most processors will run small test deposits (micro-deposits) to confirm ownership.
4. Enable ACH for customers – Once verified, you can allow clients to pay invoices using ACH.

Collect ACH Authorization from Customers

Before pulling money from a customer’s account, you need their authorization. This can be done in writing, online, or via signed agreement.

Example customer authorization form includes:

• Customer’s bank name, account number, and routing number
• Type of account (checking or savings)
• Payment amount and frequency (one-time or recurring)
• Customer’s signature or digital consent

Without authorization, you risk disputes or chargebacks.

Request and Accept ACH Payments

Once you have authorization, you can begin requesting ACH payments.

Example Workflow:

1. Send an invoice with ACH as a payment option.
2. Customer enters their bank account details securely.
3. The payment processor initiates an ACH debit.
4. Funds are transferred within 1–3 business days.

Tip: ACH is not instant like credit cards, so factor in the processing time when managing cash flow.

Send ACH Payments to Vendors or Employees

ACH isn’t only for collecting payments—it’s also great for paying others. Many businesses use ACH to:

• Pay supplier invoices directly from a bank account
• Send payroll via direct deposit
• Issue refunds without mailing checks

Steps to send ACH payments:

1. Log in to your bank or processor’s dashboard.
2. Select “Send Payment” or “ACH Credit.”
3. Enter the recipient’s bank details.
4. Confirm the amount and submit.

Track and Reconcile ACH Payments

Since ACH transactions take a couple of days to clear, monitor the payment status.

• Pending: Transaction is in progress.
• Completed: Funds successfully transferred.
• Failed: Bank account closed, insufficient funds, or incorrect details.

Reconcile payments and match them to invoices or vendor bills in your accounting system.

Bonus Tip: Use DepositFix for ACH Payments

If you want a simple way to use ACH, DepositFix offers ACH payment processing built directly into its platform. With DepositFix you can:

• Accept ACH payments through branded checkout pages
• Automate recurring ACH billing for services or subscriptions
• Collect ACH authorization online with secure forms
• Lower payment processing costs compared to credit cards

This is especially valuable for contractors, agencies, and service businesses that want to streamline payments while reducing fees.