Glossary

What is an ACH payment?

An ACH payment is an electronic bank-to-bank transfer in the US. Learn how ACH works, how long it takes, what it costs and when to use it for invoices.

Updated Nov 5, 2026 · By PayToMe Editorial

An ACH payment is an electronic bank-to-bank transfer sent over the Automated Clearing House network in the United States. It moves money between checking or savings accounts without cards or paper checks, and it is commonly used for payroll, bills and business invoices.

How it works

The ACH network is run by Nacha, which sets the rules, while banks and processors move the payments. There are two main types:

ACH credit (push). The payer starts the transfer and sends money to you.
ACH debit (pull). You, with the payer’s authorization, pull money from their account. This is how recurring bills are often collected.

To send or pull a payment, you need the account holder’s routing number and account number. For debits, you also need written or electronic authorization from the account holder.

Payments are not instant. They are collected into batches and settled between banks, so standard ACH usually takes one to three business days. A debit can also be returned later, for example if the account has insufficient funds.

Because ACH has no card network, fees are usually lower than card fees. The trade-off is slower settlement and a different kind of dispute process than a chargeback.

Example

A contractor sends a $4,800.00 invoice. The client can pay by card or by ACH.

You can build the invoice in the free invoice generator. For a longer comparison, see ACH vs credit card.

When ACH makes sense

Large invoices, where a card percentage fee adds up.
Repeat clients who pay on a schedule through a recurring payment.
Business-to-business work where clients already pay by bank transfer.

It makes less sense when you need the money the same minute or the client has no bank details handy. PayToMe online payments are live and run through Stripe, including bank transfer. See the online payments page for details, or sign in to PayToMe to try them.

Routing number: the nine-digit code that identifies a US bank.
Chargeback: a card dispute, unlike an ACH return.
Recurring payment: a repeat charge on a schedule.
Payment processor: the company that moves the money.

Frequently asked questions

How long does an ACH payment take?

Standard ACH usually takes one to three business days to settle. Same-day ACH exists for eligible payments, but your bank or processor must support it.

Is an ACH payment cheaper than a credit card?

Often yes. Processors commonly charge a small flat fee or a low percentage for ACH, while cards carry higher percentage fees. Check your own processor's pricing.

Can an ACH payment be reversed?

Yes, in some cases. A payment can be returned, for example for insufficient funds or an unauthorized debit. Return rules and time windows are set by the ACH network.