How to Accept ACH Payments Through Stripe: A Guide

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The United States offers a humongous market share, one that most businesses highly covet. Due to this, the market has become saturated, as entrepreneurs offering the same products and services scramble to get ahead. How do you gain a competitive advantage in such a marketplace? The answer is simple—offer a diverse payment method, particularly one that includes the Automated Clearing House (ACH) network.

ACH allows credit and debit transfers, enabling customers to send money from their respective bank accounts to a US bank account. Although quite new to the scene, the ACH network saw over 24.7 billion payments in 2019 alone, making it one of the most reliable and safest payment systems today. 

Collecting payments using the ACH credit is relatively easy. You only need to provide a routing and account number to your customers. The paying customer will then initiate the payment from their bank account, but take note that funds can take two to three business days to arrive. 

Direct debit payments, on the other hand, allow you to collect payments directly from your customers’s US bank accounts. You will need their bank account details, as well as permission to gain access into their debit account. Unlike the credit transfer, ACH debit payments can take up to five business days. 

Despite the waiting time, it’s undeniable that adopting the ACH payment system is a business opportunity you shouldn’t pass up. The best part about the ACH payment process is that it can be integrated into your Stripe account—here’s how it works. 

How does the ACH credit transfer process work?

  • Step 1: Once your customer is ready for payment, they’ll proceed to check out the items for payment. They will be asked to choose a payment option, allowing them to choose AHC credit should they wish.
  • Step 2: The interface will lead them to your company’s bank details, as they need these to process the payment.
  • Step 3: Once details have been inputted, they can now send the money into your bank account.
  • Step 4: Upon successful completion, the customer will be notified through a confirmation message.

How do the ACH debits work? 

Step 1: Once satisfied with the items, the customer will be able to choose the ACH debit upon checkout.

Step 2: They will be asked to enter their bank details at a secure interface.

Step 3: Once done, they will receive a payment initiation confirmation. Their funds will then be transferred to your bank account. 

What can the ACH payment method do for my business?

You’ll enjoy faster processing times 

Although payments aren’t immediately available, the ACH payment processing is still faster than checks. Seeing as it’s fully automated and digital, making trips to the bank for check deposits have been eliminated. Hands-free and convenient, your customers will be able to enjoy business transactions at the comfort of their own homes.

Processing costs are relatively lower, making it another business advantage 

Why do people enjoy ACH payment options? Transaction feeds are cheaper than credit cards. You’ll only be shelling out flat fees of $0.20 to $1.50 per transaction, making it another business advantage you must consider investing in. 

Build Your Business Foundation Through a Payment Page Builder 

As we progress further into the digital world, the US market becomes even more competitive. Businesses offering the same products and services exhaust all means to gain attention, such as marketing, advertising, and other methods of promotion. What many overlook is that gaining a competitive advantage can be quite simple—your choice of payment methods, for instance, can be enough to help you gain solid leads. For the best entrepreneurs,  business always means choosing to work smart!

To help you get started, Payment Page is here to help. As a hosted payment page, we’ll help you build your business with the right payment methods, all integrated with Stripe. Expanding your business doesn’t have to be difficult. Allow us to assist you—reach out to us today.