The 7 Best ACH Payment Processors For Small Businesses
These competitively-priced ACH payment services providers are suitable for all types of small businesses in the US and even a global option in Stripe.
Chris MotolaAn expert in personal and business loans and financial health, Chris Motola has been writing about small business finance and payments for over 5 years. He has been cited in various industry publications, including Forbes Advisor, GoBankingRates, and Medium. Chris is a graduate of the University of Central Florida.
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ACH payment processing has enjoyed an unexpected resurgence in recent years for eCommerce transactions as merchants look for alternative ways to accept payments without paying the expensive processing fees that come with credit and debit card payments.
As our guide on ACH transactions explains, ACH payments are processed over the Automated Clearing House (ACH) Network, allowing your customers to pay you by transferring funds from their bank account directly into your merchant account.
If you’ve used direct deposit to distribute or collect a paycheck or have ever received a tax refund directly into your bank account from the IRS, you’ve used the ACH Network. ACH transfers are also commonly used to pay recurring bills and subscriptions. ACH is generally more convenient than wire transfers for most consumers, making it a preferred payment method.
This article explains the various types of ACH services and what to look for in selecting an ACH processor. We’ll also briefly review the top merchant service providers that offer ACH processing for your business.
For businesses that accept payments online — through electronic invoices, a virtual terminal for keying-in payments, a website or web form, or any other methods — there are a few common pathways to setting up and accepting ACH payments. Approval for adding ACH processing to your account requires a separate (and more intensive) underwriting process since ACH payments allow you to transfer funds directly out of your customers’ bank accounts.
You’ll need two primary components to accept ACH payments, which may or may not be provided by the same entity:
A payment gateway (the software that transmits payment data)
An ACH processing account that’s connected to your gateway
Below are a few of the most common ways merchants can accept ACH payments:
Merchant Services Provider (MSP)
MSPs that set up merchant accounts for credit and debit card processing typically also partner with one or more specialized ACH payment providers to set up ACH merchant accounts for clients. If you already have a good merchant account provider, you can start your ACH processing search here. When bundled with credit card processing and other merchant services, you may get a better deal on ACH processing fees.
Payment Service Provider (PSP)
Payment service providers (also known as third-party processors or merchant aggregators) do not require you to be underwritten for your own dedicated merchant account for credit card processing or ACH processing. Instead, the PSP creates a communal merchant account on behalf of multiple merchants. There are advantages and disadvantages to this approach. One nice benefit for online merchants is that the payment gateway software is typically already included with a PSP. In other words, you don’t need to sign up for ACH processing separately.
Standalone ACH Processor
If you’re not going to be setting up credit and debit card processing at all, you may want to find an ACH or eCheck processor and sign up directly. Some ACH payment providers even specialize in layered eCheck systems that supply extra fraud, chargeback, and bounced check protection. ACH-only processing is a possible option for cannabis merchants who might otherwise be limited to operating on a cash-only basis.
High-Risk Processor
High-risk businesses frequently struggle to get approved for a merchant account, often due to abnormally high chargeback rates. Providers serving the high-risk community can often set you up with specialized ACH processing services that come with advanced anti-fraud and chargeback protection features. They can also set you up with ACH-only accounts if you can’t get approved for a merchant account otherwise or simply wish to avoid the high cost of high-risk credit card processing.
The 7 Best ACH Processing Companies
Finding the best ACH payment processing companies for your small business often comes down to selecting a reputable company that can provide both ACH and credit/debit card processing in a single package. While most traditional providers offer ACH processing as a paid add-on, some companies include it as a standard feature of your account.
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Pros
High-risk specialization
No account setup fee
Generally reasonable rates and fees
Cons
No publicly disclosed pricing
Why We Chose PaymentCloud
PaymentCloud is at the top of the list of Merchant Maverick’s best all-around high-risk payment processors for its fair treatment of hard-to-place businesses. High-risk businesses can greatly benefit from alternative payment methods, and bank-to-bank transfers in particular.
PaymentCloud Features
PaymentCloud stands out as one of the most reputable high-risk specialists we’ve found. In addition to offering ACH and echeck processing, the company can provide just about any service your business might need, including the following:
Chargeback protection and fraud prevention features
PaymentCloud Pricing
No application fee
No account setup fee
Variable monthly account fee
Other fees vary depending on the back-end processor you’re placed with
Where PaymentCloud Really Shines For ACH Processing
PaymentCloud offers ACH processing, either as an add-on to your existing merchant account or an ACH-only option for high-risk merchants who can’t be approved for a merchant account.
PaymentCloud’s virtual terminal can support ACH-related features upon request. The company boasts of getting ACH service up and running for businesses within 48 hours so long as you have a business checking account, photo ID, and a voided check. Additionally, PaymentCloud supports echeck payments, which allows business that may not qualify for
Get a free Clover Go card reader from National Processing when you sign up. Claim your card reader.
Pros
Low cost ACH processing
Month-to-month billing (in most cases)
Excellent reputation
Cons
Long-term contracts required to get free terminal
Why We Chose National Processing
Not to be confused with the similarly-named National Processing Company, National Processing is one of the smaller processors on our list, but it provides a lot of value for your dollar, particularly for businesses that want to use the Clover line of terminals. ACH and echeck are available as add-ons.
National Processing Features
National Processing is a great option for small businesses looking to get a full-service merchant account at an affordable cost. In addition to an ACH/echeck processing option, the company offers the following key features:
Authorize.Net payment gateway
Virtual terminal included
Credit card terminals and POS systems are available
Mobile processing with Clover Go is available
“Free” credit card terminal available with long-term contract
Offers interchange-plus and membership pricing for credit card transactions
National Processing Pricing
$25 setup fee for ACH processing
$15/month account fee for ACH processing
0-1.5% + $0.48/ACH transaction
$3.50/returned ACH payment
$15/ACH rejection
$9.95/month for a merchant account (interchange-plus pricing)
$59-$199/month for a merchant account (subscription pricing)
Where National Processing Really Shines For ACH Processing
While ACH processing is often including in third-party payment platforms, it can be a bit of a pain to add on through a full merchant account provider. National Processing offers one of the cheaper ACH/echeck solutions for businesses that want their own merchant account and the option to do bank-to-bank payments.
In addition to affordability, National Processing also excels in customer service, which we’ve found to be a critical feature for any merchant services provider.
Get a free card swiper from Square at no cost when you create a free account. Claim your card reader.
Pros
No monthly fee for basic account
Expansive features
Predictable flat-rate pricing
ACH included in basic account
Cons
Account stability issues
ACH payments only available through Square Invoices
Not available to most high-risk industries
Why We Chose Square
Square is one of the most accessible ways for new businesses to accept credit cards and, as it turns out, ACH payments as well. Square’s feature list is massive, and most of it is available without a monthly fee.
Square Features
Small-business favorite Square has long been a great choice for businesses that only need to take an occasional non-cash payment. Square has evolved from a basic, mobile-only processing solution to a full-featured payments ecosystem and now includes the following major features:
Credit and debit card processing
ACH processing included with every account
Complete line of Square terminals and POS systems
Square Online Store for eCommerce businesses
Basic Square Invoices feature included at no extra cost
Analytics and reporting available through Square Dashboard
Extensive list of free and premium business productivity software
Square Pricing
No setup fee
No monthly fee
1%/ACH transaction (minimum $1 charge)
No ACH reject fee
$50,000 maximum/ACH transfer
Where Square Really Shines For ACH Processing
For Square Invoice users (such as freelancers, independent contractors, or professional services), ACH processing will be a welcome feature that gives your customers an additional way to pay you. ACH processing charges are competitively priced. The lack of an additional monthly fee for this service makes it a great choice for businesses that only occasionally accept an ACH payment.
Unfortunately, ACH payments can only be processed through Square Invoices, making it unavailable to eCommerce merchants using the Square Online Store to run their business. Also, ACH transfers take three to five business days to reach your bank account. At the same time, the account stability issues that Square is known for won’t be as much of an issue with ACH payments, as the funds are coming directly out of the customer’s bank account.
Interchange-plus pricing for credit card transactions
Cons
No disclosed pricing for ACH
Not suitable for low-volume merchants
Why We Chose Host Merchant Services
With its roots in the web-hosting industry, Host Merchant Services is a technology-first provider that’s especially well-suited to online businesses. In addition to competitive interchange-plus rates for credit and debit card processing, the company offers ACH processing through either its proprietary Transaction Express gateway or third-party services such as the NMI gateway or Authorize.Net.
Host Merchant Services Features
Host Merchant Services (HMS) offers a full array of products and services for any business but is especially focused on the eCommerce sector. Major features include the following:
Authorize.Net and NMI payment gateways are also available
Extensive integration with third-party shopping carts
Basic web hosting services included with all accounts
Loyalty/gift card programs
$100,000 data breach insurance policy included with all accounts
Host Merchant Services Pricing
$14.00/month account fee
$5-$10/month gateway fee (additional per-transaction fee of $0.05-$0.08; only applies for third-party gateways)
$24/year IRS 1099 reporting fee
ACH transaction fees vary by payment gateway
No application or setup fees
No monthly minimums
No PCI compliance fees
Where Host Merchant Services Really Shines For ACH Processing
Merchant service providers like Host Merchant Services are generally focused on one thing: providing merchant accounts for credit card processing. As such, alternative payment methods like ACH are left to payment gateways, which can be added to the service. This means you can compare the costs of compatible payment gateways and pick the one that best fits your needs.
Costs will vary depending on which partner is handling your ACH account. You can expect to pay both a monthly fee and a reasonable per-transaction processing charge — both of which will be disclosed in your contract before you sign up.
eCommerce darling Stripe has an exhaustive list of features that can potentially meet the needs of just about any business. It serves merchants in over 35 countries and can process transactions in over 135 currencies and payment methods. ACH processing is included with every account at no extra cost, and processing charges are very competitive with what other payment providers can offer you.
Stripe’s main draw is its outstanding integrated payments platform, which can seamlessly consolidate a wide variety of payment methods and offer unparalleled analytics and reporting data. Stripe also features great international support, although ACH transfers are a US-only payment method. With virtually endless customization options and a broad assortment of services to help you run your business, Stripe may be all you need.
Stripe Features
Stripe has long been one of the dominant payment processors in the eCommerce world but has recently begun making inroads into retail payments. Here are the major features that Stripe has to offer:
ACH processing included with every account
Stripe Payments integrated payments platform
Stripe Virtual Terminal
Stripe Radar anti-fraud protection
Broad support for international payments and local payment methods
Stripe Terminal for card-present transactions
Extensive library of APIs and developer tools
Many ancillary services for establishing and running your business
Stripe Pricing
No monthly fees for a basic account
0.8%/ACH direct debit transaction ($5.00 maximum)
1.2%/ACH direct debit transaction (two-day settlement)
$1.50/instant bank account validation
$1.00/ACH credit payment
$5.00/check received
$4.00/failed ACH direct debit payment
$15.00/disputed ACH direct debit payment
Where Stripe Really Shines For ACH Processing
When you factor in the free account and low ACH transaction fee, Stripe turns out to be one of the cheapest ways to accept ACH payments. Add in the fact that Stripe has extensive billing and invoicing features and excellent support for recurring payments, and you have a great all-around platform for bank-to-bank transfers.
Helcim offers a fully-underwritten merchant account with no long-term commitment and no early termination penalties. It’s one of the very few providers in the industry to provide a stable, full-service merchant account with no monthly account fees. While you will have to pay extra for some optional features, ACH processing isn’t one of them. It’s free, and all you have to pay are the transaction processing fees.
Helcim Features
Helcim has long been one of our favorite merchant services providers for both Canadian and US-based merchants. The company offers full-service merchant accounts for less money overall than most of its competitors. It also provides a full range of features for most businesses, including the following:
ACH payment processing included with all accounts
Exclusive interchange-plus pricing for credit/debit transactions
Hosted online store for eCommerce merchants
Affordable Helcim Card Reader for in-person credit/debit transactions
Integrated virtual terminal
Proprietary Helcim POS software
Online invoicing is included with all accounts
Helcim Pricing
No monthly account fee
No PCI compliance fee
No monthly minimum
0.5% + $0.25/ACH debit payment
$5/returned or rejected ACH transfer
Where Helcim Really Shines For ACH Processing
Helcim offers some of the best value in the business when it comes to payment processing, and this extends to its low cost ACH transfer costs. That you can get this and interchange-plus pricing for no monthly fee is practically unheard of. The one downside is that Helcim caps ACH transfers at $25,000.
Durango Merchant Services offers almost all of its customers month-to-month billing, including high-risk customers, which is always good. Durango Merchant Services has a reputation for excellent service for high-risk merchants and businesses seeking offshoring merchant accounts. Durango Merchant Services offers eCheck services (read our guide) as an alternative to traditional ACH processing.
Durango Merchant Services Features
Durango Merchant Services features include:
Low-, high-risk, & international merchant accounts
eCheck processing
Support for POS, online, & mobile transactions
Fraud protection services
A variety of credit card terminals and POS systems are available
Cryptocurrency support
Durango Merchant Services Pricing
High-risk pricing varies from business to business
Where Durango Merchant Services Really Shines For ACH Processing
While the term “high-risk” is usually associated with credit card processing, high-risk businesses can also run into challenges getting approved for an ACH merchant account under NACHA guidelines. One way around this is through eChecks, which are offered by Durango Merchant Services. eCheck accounts can be up and running within 24 hours and function similarly to taking a customer’s check to the bank but through an electronic checking system.
Businesses looking to keep costs to a minimum are always looking for “free” services, even if they’re very basic and don’t offer any optional features. Some providers include ACH processing as a standard feature of their accounts and don’t charge a monthly fee for this service.
Unfortunately, nothing is ever truly “free” in the payments processing industry, including the possibility of free ACH payment processing. If you’re not paying extra to accept ACH payments, rest assured that the cost of providing this service is bundled in with your monthly costs somehow — typically as part of your monthly subscription fee or in the form of higher-than-average processing rates. You’ll also have to pay per-transaction processing charges, and there’s no mechanism to transfer those particular costs onto your customers (like you can with credit card surcharging).
Nonetheless, having ACH processing included with your account without an additional monthly charge is much better than what most traditional providers can offer you. With most full-service merchant account providers, you can expect to pay about $15-$30/month just for access to ACH processing, plus per-transaction processing charges that typically hover around 1.0-1.5% for each transfer.
In any event, ACH processing is almost always significantly less expensive than accepting credit cards, as there are no costly interchange fees to deal with. Even in the B2B space, where credit card interchange rates are lowered, ACH is typically a less expensive and more convenient option.
In selecting a top-notch ACH payment provider for your business, we recommend that you focus on the following consideration:
Reasonable Rates: An ACH processing rate can come as a percentage, a flat fee per transaction, or both. A flat fee will be preferable to a percentage charge, especially as your transaction sizes increase. Sometimes, ACH transactions are even free if you’re already paying for credit card processing through the same company. Remember that your ACH rates should usually be lower than credit card processing fees!
Reasonable Overall Cost: Traditional merchant services providers typically charge around $15-$30/month to add ACH processing to your account. You might also have to pay a one-time setup fee and undergo a separate underwriting process. However, you should be able to include ACH processing for no additional monthly fee (as many of our top choices will offer you). Also, look out for unusually high fees for ACH rejects or disputed transfers.
Helpful Features: While you’ll need access to a payment gateway or integrated payments platform to accept ACH payments, mail order, and telephone order businesses will usually require a virtual terminal to key in these payments manually. Also, consider whether you’ll need features such as an integrated shopping cart, a website builder, or support for recurring billing. Other features to consider include expedited deposits, auto-reconciliation of invoices, and advanced analytical and reporting tools.
User-Friendliness: Regardless of how simple or sophisticated your payment setup is going to be, it should be easy to use. This goes for both you and your customers. You’ll also want access to product documentation and customer support resources to help set up your account just how you want and troubleshoot any problems that arise.
Advanced Integrations & Developer Tools: Some ACH payment providers integrate with websites, shopping carts, and services that automate and streamline authorization and bank verification for ACH. For example, Plaid is a popular ACH integration that facilitates the authorization of funds and validation of bank accounts without requiring the customer to look up an account or routing number. Meanwhile, if you work with a software developer to customize and run your website, we’d definitely recommend getting their opinion when deciding on an ACH service.
How Do I Find The Best ACH Payment Processor For My Small Business?
Credit and debit card processing is expensive and getting more so all the time. It imposes a burden on businesses of all sizes but can be particularly costly for small businesses. Although based on an older (and slower) payments network, ACH payment processing offers a convenient and more affordable way for your customers to pay you. It can also save you money on your overall processing costs compared to only accepting credit and debit cards.
When looking for an ACH payment provider, we’d suggest starting with your current merchant account or payment gateway provider. If you’re just getting started with an online business, we encourage you to be open to accepting as many payment methods as you can. The more options you provide, the better you’ll reach customers. In this case, you’ll want to pick a provider with a good track record of serving businesses like yours, with competitive rates and, ideally, no long-term contract. Start with our list of the best small business credit card processors to find a fair, reputable, and affordable company.
ACH processing is just one of several alternative payment methods that have become more popular in recent years due to the steady growth of the eCommerce business community. Also, the continuing increase in the cost of accepting credit cards has led many business owners to seek out ways to avoid them by offering additional payment methods that aren’t as expensive to process.
Common Questions About ACH Payment Processing
What is an ACH processor?
An ACH processor is any merchant services provider that allows businesses to accept payments via the Automated Clearing House (ACH) Network. By using an ACH processor, merchants can receive payments using bank accounts rather than credit cards.
Is online ACH safer than credit cards?
ACH payments are generally safer than paper checks or wire transfers but aren’t inherently more secure than credit card payments. However, if your ACH processor offers a means of confirming that there are sufficient funds in your customer’s bank account prior to approving an ACH payment, there will be little risk of an ACH payment being rejected or disputed.
Do businesses use ACH payments?
Yes. ACH payments are an excellent way to collect B2B and invoice payments, and they’re a great alternative to paper checks or credit card payments. Funding times, however, are slower due to limitations in the Automated Clearing House processing network.
What is business-to-business ACH?
Business-to-business (B2B) ACH transfers are transactions between two companies, rather than a company and a consumer. B2B ACH payments are faster and cheaper than many alternatives, including paper checks. Invoicing software facilitates B2B ACH transactions, automatically reconciling payments and (sometimes) reducing the time to receive payment.
Is there a limit on ACH transfers?
The National Automated Clearing House Association (NACHA) previously limited single, same-day ACH transfers to $25,000. However, in 2020, this limit was raised to $100,000, making ACH payments more practical for large B2B payments, insurance claim payouts, and disbursement of disaster assistance funds. Note that your bank and merchant services provider may also have their own limitations on ACH payments.
An expert in personal and business loans and financial health, Chris Motola has been writing about small business finance and payments for over 5 years. He has been cited in various industry publications, including Forbes Advisor, GoBankingRates, and Medium. Chris is a graduate of the University of Central Florida.
View Chris Motola's professional experience on LinkedIn.
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Merchant Maverick’s ratings are editorial in nature, and are not aggregated from user reviews. Each staff reviewer at Merchant Maverick is a subject matter expert with experience researching, testing, and evaluating small business software and services. The rating of this company or service is based on the author’s expert opinion and analysis of the product, and assessed and seconded by another subject matter expert on staff before publication. Merchant Maverick’s ratings are not influenced by affiliate partnerships.
Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity. The editorial content on this page is not provided by any of the companies mentioned and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are author’s alone.
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