There are several easy ways to accept online ACH payments using modern ACH payment processing tools—including options for recurring payments. Below, we’ll explain what ACH is, how it works, step-by-step setup, and practical tips to keep costs low and approvals high.
What Is an Online ACH Payment?
ACH payments (Automated Clearing House) are electronic bank-to-bank transfers—also called electronic funds transfers (EFTs)—that move money directly between checking or savings accounts through the ACH network. While not as instant as cards, ACH often carries lower processing costs and reduced chargeback risk, making it ideal for larger invoices and subscriptions.
How Do I Accept ACH Payments Online?
Step 1: Choose a processor that supports ACH.
Confirm your provider supports ACH debit (pulling funds with customer authorization) and ACH credit (pushing funds). Review pricing, funding timelines, return/NSF handling, and reporting.
Step 2: Collect an ACH authorization.
Before you debit a customer’s account, you need a NACHA-compliant authorization. Your processor can host the authorization within your payment flow so customers securely submit routing and account numbers once.
Step 3: Offer ACH at checkout and in your tools.
Make ACH available anywhere you accept payments online:
· Invoicing: Email an invoice with a payment page where customers enter bank details.
· Recurring Payments / Subscriptions: After authorization, your recurring billing pulls funds automatically on schedule.
· Online Checkout: Add ACH as a payment method next to cards.
· Payment Links/Requests: Text or email a secure link customers can use to pay via bank transfer.
· Virtual Terminal: Key in authorized bank details from your dashboard for one-time or repeat charges.
Step 4 (optional): Incentivize ACH.
Give customers a reason to choose ACH—e.g., a small discount for bank transfer or a disclosed convenience fee for card payments. Remind them they only enter bank info once; after that, future payments are fast and automatic.
How Do ACH Payments Work? (5 Steps)
1. Collect bank details & authorization: - Obtain routing/account numbers and a NACHA-compliant agreement covering amount, schedule, and terms.
2. Submit the payment: - Enter the transaction; your processor packages and sends it into the ACH network.
3. Network processing: - The ACH network routes from your ODFI (your bank/processor) to the customer’s RDFI (their bank).
4. Bank checks & transfer: - the customer’s bank validates details, funds, and authorization. If approved, the transfer proceeds. Funding typically takes 1–3 business days for processing plus bank posting time.
5. Deposit: - Funds land in your business bank account (net of any ACH processing fees).
Types of ACH Payments
· ACH debit (“pull”) – You pull funds with prior authorization (subscriptions, invoices, payment plans).
· ACH credit (“push”) – Payers push funds to you (payroll, reimbursements, vendor payments).
Most merchants primarily use ACH debit to collect money from customers.
Pros and Cons of Online ACH Payments
Advantages
· Lower processing cost than cards—great for high-ticket and recurring billing.
· Fewer card-style chargebacks and expirations; bank accounts don’t “expire.”
· Convenient for subscriptions—set it once, and billing continues automatically.
· Fewer false declines vs. cards hitting limits or fraud filters.
Considerations
· Slightly more setup up front (capturing bank info and authorization).
· Not ideal for quick one-off, in-person payments (cards are faster to key or tap).
· Longer funding times than cards in many cases.
Who Uses Online ACH Payments?
Industries handling large or Recurring Payment Solutions rely heavily on ACH: SaaS and tech subscriptions, professional services (legal, accounting, consulting), contractors, healthcare, education, gyms and memberships, B2B suppliers, and nonprofits.
How Long Does an ACH Transfer Take?
Plan for 3–5 business days end-to-end. Delays can happen due to bank schedules, weekends/ holidays, or verification checks. If a payment seems late, ask the payer for an ACH trace ID so your provider can investigate status within the network.
Turn On ACH Payments with Liftoff Platform
· With Liftoff Platform, enabling ACH is straightforward. You can:
· Offer ACH alongside cards in invoicing, payment links, recurring billing, online checkout, and a virtual terminal.
· Generate and store NACHA-compliant authorizations within your flow.
· Monitors approvals, returns, and retries in your dashboard and keep cash flow predictable.
FAQs (ACH Online Payments)
What do I need to process ACH payments?
A processor that supports ACH, a business bank account, and a NACHA-compliant authorization from the payer (plus their routing and account numbers).
What if an ACH transaction isn’t authorized?
Unauthorized or improper debits are typically returned with a code. Work with your processor to understand the reason, provide documentation, or obtain a new authorization before retrying.
What’s the best way to take ACH payments online?
Use a platform that integrates ACH across invoicing, subscriptions, payment pages, links, and virtual terminal so customers can pay by bank wherever they interact with you.
How can someone pay me via ACH?
You can accept ACH credit (the payer pushes funds to you) or ACH debit (you pull funds after authorization). Liftoff Platform supports both collection methods with built-in tools.
Are online ACH payments the same as online bill pay?
Online bill pay often uses ACH under the hood. For subscriptions and memberships, ACH debits let you pull funds automatically, while customers can also push payments as ACH credits from their bank.