How to Integrate ACH Payments with Your E-Commerce Store

ACH (Automated Clearing House) payments are electronic bank-to-bank transfers that allow customers to pay directly from their checking or savings accounts. Instead of routing transactions through credit card networks, ACH uses the U.S. banking system to move money securely.

According to the National Automated Clearing House Association (NACHA), the ACH Network processed 31.5 billion payments in 2023, valued at nearly $80 trillion. This shows the growing demand for bank-based transactions in both consumer and business payments.

For online stores, offering ACH payments means more than just adding another option at checkout. It provides lower transaction fees, reduced chargebacks, and access to customers who prefer direct bank transfers over cards.

At a time when e-commerce competition is high and margins are tight, ACH gives businesses a practical way to cut costs and increase customer trust.

In this guide, we’ll walk through the benefits of ACH, the steps to integrate it into your e-commerce store, and the best practices for making it work across all industries, including high-risk sectors.

Benefits of Accepting ACH Payments in E-Commerce

Adding ACH as a payment option in your online store delivers multiple advantages that go beyond simply offering customers another way to pay. Here’s why it makes a difference:

1. Lower Fees

Credit card transactions often come with percentage-based processing fees that can eat into your profit margins, especially for high-value items. ACH payments, on the other hand, usually cost a flat amount per transaction, often between $0.25 and $1.50. This makes them far more cost-effective, particularly for businesses that process large transactions or recurring payments.

2. A Secure System

ACH payments are handled through the Automated Clearing House network, which is a federally regulated system connecting banks across the United States. Because transactions move directly from one bank account to another, there are fewer intermediaries and reduced exposure to data breaches or fraud attempts. For merchants, this translates into a more reliable payment flow.

3. Customer Trust and Familiarity

Many consumers are already used to ACH without realising it; direct deposit of paychecks, utility bill payments, and monthly subscriptions often rely on this system. Since ACH is already part of their daily financial life, customers tend to trust it when they see it offered at checkout. By providing this familiar method, you’re removing hesitation and giving buyers confidence to complete their purchase.

4. Reduced Chargebacks

One of the biggest challenges in e-commerce is handling chargebacks from disputed credit card payments. ACH operates differently: it has stricter return windows and clearer authorization requirements. This means fewer disputes and a lower risk of chargeback fraud. For merchants, it creates a more stable payment environment and reduces unnecessary losses. A Study (2021) finds that ACH transfers reached 34.2 billion payments in 2021, with a total value of around $86.6 trillion. At the same time, check payments declined in number, from 13.6 billion in 2018 to 11.1 billion in 2021.

Is ACH better than credit cards?

ACH is cheaper and safer for big or recurring payments, while credit cards offer speed and rewards.

How ACH Payments Work in Online Transactions

ACH payments move money directly between bank accounts through the Automated Clearing House network. The process is structured and happens in a few key steps:

1. Customer enters bank details: At checkout, the buyer provides their checking or savings account number and routing number, similar to how they would set up a direct deposit or bill payment.
2. The request is processed through the ACH network: The merchant’s payment processor submits the payment request to the ACH system, which serves as the central clearing network connecting U.S. banks.
3. The bank verifies and authorizes funds: The customer’s bank checks the account for accuracy and verifies the available balance. Once verified, the bank approves the transfer and prepares to release funds.
4. Settlement occurs in 1-3 business days: Funds are transferred from the customer’s bank to the merchant’s bank account. Standard ACH takes a couple of days, while same-day ACH can expedite eligible payments.

Unlike card payments, ACH transactions bypass credit card networks, such as Visa or Mastercard. By relying on direct bank-to-bank communication, ACH reduces middleman costs and streamlines the payment process. The Federal Reserve Payments Study (2021) reported that business ACH credit transfers accounted for 85% of all commercial transfers by number and 97% by value, highlighting the critical role ACH plays in enabling U.S. businesses to move money securely and at scale.

How long does an ACH payment usually take?

Most ACH transfers settle within 1-3 business days; however, some processors and banks now support same-day ACH for even faster transactions.

What You Need Before Adding ACH to Your Store

To add ACH payments successfully, e-commerce businesses need:

• Merchant account with ACH support: Not all accounts allow ACH, so you need a processor that supports it.
• Payment gateway integration: The gateway must connect your e-commerce platform (e.g., Shopify, WooCommerce, Magento) with ACH capabilities.
• Compliance with NACHA rules: Merchants must adhere to strict authorization and verification standards to minimize fraud.

According to NACHA regulations, merchants are required to maintain proof of customer authorization for each ACH payment.

Steps to Add ACH Payments to Your E-Commerce Store

Integrating ACH payments into your online store is straightforward when broken into clear steps. Each stage ensures that the system works smoothly for both you and your customers:

• Choose a payment processor that supports ACH: Not all processors handle ACH lower transactions, so start by selecting one that offers ACH as part of their services. Look for providers that can integrate easily with your e-commerce platform.
• Apply for approval: Just like with credit card processing, you’ll need to apply. This typically involves sharing basic business details, banking information, and any supporting documents your provider requires.
• Connect the ACH gateway to your store: Once approved, your payment processor will provide an ACH gateway. This gateway acts as the bridge between your online store and the banking system. Most platforms, such as Shopify, WooCommerce, or Magento, offer plugins or built-in integrations to simplify this connection.
• Enable ACH at checkout: After integration, add ACH as a visible payment method alongside credit cards, debit cards, and digital wallets. Be clear in labeling so customers understand it allows direct payments from their bank accounts.
• Run test transactions: Before going live, process a few test transactions to confirm everything works as expected. This helps ensure smooth settlement, correct data capture, and a reliable customer experience.

Once these steps are complete, customers will see ACH listed as a checkout option. This not only gives them more flexibility but also positions your store to save on fees and reduce reliance on card networks.

Features to Look For in an ACH Payment Provider

Not all ACH providers deliver the same level of service, so selecting the right one is crucial for a seamless payment experience. Here are the most important features to consider:

1. Fast approval

Some providers take weeks to onboard new businesses, while others can approve accounts in just a few days. Providers like 2Accept specialize in rapid setup, often enabling merchants to go live within 48 hours.

2. Fraud protection tools

Because ACH relies on bank account details, it’s important to work with a provider that verifies accounts and uses fraud-prevention systems. These tools help reduce the risk of unauthorized transactions and rejected payments.

3. White-glove customer support

ACH can involve compliance requirements and technical setup. Providers that offer real human support, rather than automated chatbots, make integration and troubleshooting much easier.

4. Flexible integrations

The provider should integrate seamlessly with your e-commerce platform, whether you use Shopify, WooCommerce, Magento, or a custom-built platform. Seamless integration ensures ACH appears naturally at checkout alongside other payment options.

What’s the most important feature in an ACH provider?

Fast approval and strong fraud protection are essential, but the best provider combines speed, security, and reliable human support.

Challenges of ACH Payments and How to Handle Them

While ACH is cost-efficient and secure, there are a few challenges merchants should be aware of:

1. Longer settlement times

ACH transfers usually take 1–3 business days, compared to instant card authorizations. Merchants should plan their cash flow around this timeline.

2. Customer hesitation

Some buyers may feel uneasy about entering their bank account details at checkout. This can be overcome by demonstrating strong trust signals, such as SSL certificates, fraud protection badges, and clear privacy policies.

3. Refunds and returns

Refunds through ACH may take longer than card reversals. Merchants can minimize friction by establishing clear refund policies and clearly communicating expected timelines to customers. A Study From Federal Reserve Payments, ACH transactions settle more slowly than real-time payments, but remain among the most cost-efficient methods available.

How do I build trust with customers using ACH?

Display visible security features at checkout and partner with a payment provider that offers strong fraud protection tools.

Best Practices for Growing Sales with ACH Payments

ACH isn’t just a low-cost payment option; it can also help drive sales growth when used strategically:

1. Offer ACH and cards together: Combining ACH with credit and debit card payments ensures customers can choose their preferred method, which helps improve conversion rates.
2. Encourage subscriptions: ACH is ideal for recurring billing models, such as memberships, SaaS, or monthly product deliveries. With lower fees than cards, it saves money on every repeat transaction.
3. Promote ACH for high-value purchases: For larger orders, ACH fees are much lower than card fees. This makes it a smart option for industries that sell high-ticket products or services.

When should I recommend ACH to customers?

ACH works best for recurring payments and high-value purchases, where lower fees result in significant savings.

Making ACH Work for Your Store

Integrating ACH payments is one of the fastest ways to lower costs, reduce chargebacks, and give customers a trusted alternative to credit cards. Whether you run a traditional online store or operate in a high-risk industry, ACH can help your business grow without the limits of outdated processors. With 2Accept, you can get approved and live in as little as 48 hours, backed by white-glove support and seamless integrations. Contact us today, and let 2Accept make ACH payments work for your store.

Frequently Asked Questions

1. Can ACH payments be used for international transactions?

No, ACH is limited to bank transfers within the United States. For international payments, other networks, such as SWIFT or wire transfers, are required.

2. Do ACH payments work for recurring subscriptions?

Yes, ACH is well-suited for recurring billing because it allows merchants to automatically debit customer bank accounts at regular intervals.

3. Are ACH payments reversible?

Yes, but only under specific conditions such as unauthorized transactions, incorrect amounts, or duplicate charges. Reversals must be requested within a set time frame.

4. Can customers use ACH on mobile checkouts?

Yes, as long as your payment gateway supports ACH, customers can enter their bank details on mobile devices just like they would on desktop checkout.

5. Do ACH payments require a customer’s physical check?

No, customers only need their bank account and routing numbers. Physical checks are not required to process ACH payments online.