What Are ACH Transactions?

An ACH transaction is an electronic transfer of money between accounts at different banks. With an ACH transaction, an individual can securely receive or send money between their bank and another. Businesses regularly use ACH transactions to simplify payroll with direct deposits, pay invoices, and accept customer payments.

ACH transactions enable faster expense payments for everything from unpaid invoices to payroll. For some businesses, particularly professional service providers, ACH transactions are the primary customer payment method.

How Do ACH Transactions Work?
An ACH transaction begins when a bank’s customer makes an ACH transfer. First, the customer enters the routing and account number of their bank account. Then, the information associated with that transaction transfers to the ACH network.

For example, if you’ve ever deposited a check with your phone or received a direct deposit, you’ve used an ACH system.

Why You Should Accept ACH Payments

  • ACH Payments are Secure
    The ACH is federally regulated and managed by the National Automated Clearing House (NACHA). As long as you work with payment processors and banks that use property security practices, ACH is safe and secure.
  • ACH Payments are Affordable
    ACH is one of the most affordable options to pay or get paid. With payment and financing systems, business owners can set up and automate payments via ACH. According to Nerdwallet, ACH fees range from no cost at all ($.0 per transaction) to a few dollars. The cost of the transfer depends on volume and transaction size. The cost is more favorable compared to domestic wires ($15 or more), credit cards (in the 2%-4% range), and paper checks (a few dollars).
  • ACH Payments are Fast and Convenient
    ACH payments are usually processed faster than checks through the mail. When companies have to process payments and deposit checks into their bank account, it may take a week or more to make payments via paper checks vs. ACH payment. Most ACH payments are available the same or next business day.


Overall, ACH transfers can be a fast and convenient way to send and receive funds. They are also a quicker and more convenient way for customers to pay you. By taking advantage of the ACH network or encouraging your customers to make ACH payments, you will positively impact your cash flow. Keep in mind that using the ACH network and accounts receivable (AR) automation software together can take your business to the next level.

BlueTape, specifically, offers both contractors and material suppliers ACH payments online. This expansion of financial services and accessibility through an online platform highlights the importance and necessity of ACH acceptance.

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