Automatic Clearing House (ACH) payments are electronic payments that allow businesses to transfer money between bank accounts in the United States.
ACH payments are made using the ACH network, which was first introduced in the 1970s and has since become a widely-used B2B payment method.
Each month, the ACH network processes billions of transactions, making it a reliable and efficient way for businesses to transfer funds.
One of the main advantages of ACH payments is their convenience.
Rather than writing and mailing a check, businesses can initiate an ACH payment online or through their bank, which is especially useful for businesses that frequently make payments to other companies. In addition, ACH payments can be scheduled in advance, allowing businesses to automate their financial transactions.
Another benefit of ACH payments is their cost-effectiveness.
ACH payments typically have lower fees than wire transfers or credit card payments, making them an attractive option for businesses looking to save on transaction costs.
If you’re a US business that wants to offer ACH payments to your clients, Payoneer can certainly help.
We offer a unique service known as Request a Payment. As a result, we can help your business receive ACH payments.
By using Payoneer, businesses can quickly receive ACH payments from their US-based clients and international clients and transfer the funds directly to their cross-border accounts.
ACH payments are a popular and convenient B2B payment option that can help businesses save lots of time and money.
By offering ACH payments to your US clients and using Payoneer to facilitate the process, you can streamline your financial transactions and better serve your clients’ needs.
Several payment options are available for businesses regarding B2B payments, including wire transfers, checks, and the ACH payment method.
ACH payments, also known as Automatic Clearing House transfers, are a popular choice for businesses in the US.
This payment method accounts for more than a third of all business-to-business payments because they are convenient, cost-effective, and easy to initiate.
To make an ACH payment, payers need to provide certain information, including:
ACH payments are processed in batches three times a day, but processing times can vary depending on when the payment request is made and the bank’s schedule.
In general, ACH payments take several business days to be completed.
ACH transfers offer several benefits for both payers and payees. For example, Payoneer provides a Request a Payment service that allows businesses to quickly request payments from their clients via the ACH payment method.
This can be particularly useful for businesses that regularly invoice their clients for services or products.
The ACH payment method is a popular and efficient choice for businesses looking to make B2B payments in the US.
By using Payoneer’s Request a Payment service, companies can quickly request and receive payments via ACH, making the process even more streamlined and hassle-free.
The ACH payment method offers several benefits for businesses, including convenience and cost-effectiveness.
One of the main advantages of ACH payments is their convenience.
Because ACH payments are made electronically through your and your payee’s financial institutions, you don’t need to worry about dealing with paper invoices or making trips to the bank. ACH payments are also guaranteed to arrive within a set amount of time directly to your account, unlike checks which can be lost or delayed in the mail.
ACH Transfers vs. Wire Transfers (Domestic)
| ACH Transfer | Wire Transfer | |
| Cost to send | $0.25-$0.75 per transaction | $25-$30 |
| Cost to receive | Free | $15-$20 |
| Processing time | 3-4 business days | Typically, one business day |
Another benefit of ACH payments is their cost-effectiveness.
ACH transfers typically cost less than B2B payment methods, including wire transfers or credit card transactions.
For example, while merchant account providers set the prices for ACH transfers, they typically cost $0.25 – $0.75 per transaction compared to $10 – $35 for domestic wire transfers and 7% – 4.4% of the transaction value for credit card payments. This makes ACH payments a cost-effective option for businesses looking to save on transaction costs.
ACH Transfers with Payoneer vs. Wire Transfers (Cross-Border)
| ACH Transfer | Wire Transfer | |
| Cost to send | 0-1%* | $45-$50 |
| Cost to receive | Free** | $15-$20 |
| Processing time | 3-4 business days | 1-5 business days |
Payoneer’s Request, a Payment service with ACH transfers, makes it easy for businesses to make global payments and take advantage of the convenience and cost-effectiveness of domestic transfers.
One of the main benefits of using Payoneer’s ACH payment service is the low fees.
Payoneer charges between 0% and 1% of the total amount you transfer so that you can save on fees compared to other payment methods, such as international wire transfers.
For example, a $2,000 monthly payment to a contractor in the Philippines will cost $20 with ACH transfers through Payoneer,
while an international wire transfer of the same amount would cost $60-$70, saving you 55-70% on fees every month.
Another advantage of Payoneer’s ACH payment service is the ability to track your payments.
Unlike international wire transfers, which don’t provide status updates, ACH transfers with Payoneer can be tracked at every step, so you know exactly when your payment reaches your recipient’s account.
In addition to the convenience and cost-effectiveness of ACH transfers, Payoneer’s Request a Payment service also provides your contractors with several options for using their funds after they receive payment.
They can pay for online expenses, send funds to subcontractors for free, or withdraw to their local bank account.
Payoneer also charges low conversion fees, including a 2% charge for converting USD to local currencies, compared to the 4%-6% fee charged by local banks.
Payoneer’s Request, a Payment service with ACH transfers, is a simple and cost-effective way for businesses to make global payments and provide their contractors with the convenience and flexibility they need.
Click the following link for more info on ACH transfers for cross-border payments.
Wrapping it up: The ACH payment method offers convenience and cost-effectiveness for businesses making B2B payments.
Companies can save time and money on their financial transactions by using the ACH payment method.
One of the main limitations of ACH transfers is that they can only be made within the US. However, with Payoneer’s Request a Payment service, you can now offer your US clients a simple way to pay you via ACH transfers for global transactions.
Through the Request a Payment service, you can send out invoices and receive payments to a local receiving account in USD, as if you had an American bank account.
This allows you to easily manage your cross-border payments and access your funds without setting up a US bank account.
Once you receive payment via ACH transfer, you can use the funds for various business purposes, such as making other payments, paying VAT, converting to different currencies, or simply withdrawing to your local bank account.
Click on the link to learn more about how Payoneer can help you facilitate your cross-border payments.
Payoneer’s Request a Payment service makes it easy for businesses to receive ACH payments from their US clients, providing a convenient and cost-effective way to manage your cross-border payments.