Differentiate Your Software by Offering ACH Payments

ACH support in your software does more than benefit your clients. It also makes your solution more attractive to users.


Making your software stand out in a crowded market can seem incredibly difficult. However, as more businesses engage customers online and accept digital payments, one way to differentiate your solution is to integrate with a payments company that supports Automated Clearing House (ACH) payments.

What are ACH Payments?

ACH payments are a hassle-free way to get money from one bank account to another without credit cards, debit cards, or physical checks. Money moves between bank accounts in both businesses-to-business and consumer-to-business transactions.

People sometimes confuse ACH with other types of payments. For example, ACH payments are similar to wire transfers which transfer funds immediately. However, it takes several days for a merchant to get funds with an ACH payment. On the other hand, ACH transactions are significantly less expensive than wire transfers. Also, ACH transactions are sometimes considered the same as remote deposit capture, although it’s better to think of the two services as complementary to each other. Remote deposit capture allows a business owner to scan and deposit checks without a trip to the bank, while ACH enables reliable fund transfers for products and services.

Why ACH Payments can Benefit Your Customers

Avoiding or decreasing payment processing fees is probably the most obvious benefit of giving your clients the option to accept ACH payments. Instead of paying 3 percent or more of each transaction to run a credit card, merchants can pay significantly less with ACH transactions. A business that is able to solely accept ACH payments could also find that end-of-day reporting is easier than when they accept credit and debit cards on different channels.

Another benefit is that ACH payments aren’t included in the scope of Payment Card Industry Data Security Standards, so a business could simplify or avoid PCI compliance requirements. Instead, ACH payments are regulated by Nacha, and businesses accepting these payments must verify accounts and follow other rules and guidelines or face penalties for noncompliance. Fortunately, when you partner with the right payments company that supports ACH, the framework for Nacha compliance is in place for you and your clients.

Additionally, because ACH payments draw funds directly from bank accounts, there are fewer declines due to outdated information and a shorter window of time for chargebacks. Customers have 90 days to dispute ACH transactions versus the standard 120 dispute window for credit cards. The new Nacha regulation that requires capturing account verification requires confirming that new or updated consumer accounts are legitimate and can receive ACH debits, providing further protection from fraud and declines and improving overall customer experiences.

Business-to-business transactions are a prime example of ACH benefiting all parties. B2B customers can pay for recurring orders like office supplies and necessary equipment automatically from their bank accounts, and the ACH network can handle transactions with money moving from the buyer to the seller’s account in the same, or only slightly more, time than a traditional credit or debit transaction.

Also, a retailer that offers subscription services can also benefit from ACH payments.  Consumers can log into a company’s website integrated payment platform to set up their financial information once and payments are automatic. Companies that offer wellness memberships, monthly curated boxes, and even beauty product subscriptions can be handled easily through ACH payments.

How ACH Payment Processing Benefits ISVs

ACH support from a payments company does more than benefit your clients. It also helps your ISV business, and it makes the solution you provide more attractive to more users. By enabling an easy way to accept ACH payments, you’re the software company that helps them save money on processing fees.

Since the pandemic began, merchants have been looking to provide the best possible customer experiences that are most cost-effective for their businesses. Offering ACH payments can meet all of these needs and more.


Jason Estes is Founder and CEO of iCheckGateway.com (iCG), a leading provider of ACH and credit card processing solutions. Our solutions are sold through a nationwide network of partnerships with independent sales organizations (ISOs), value-added resellers (VARs), independent software vendors (ISVs) and financial institutions. iCG is a Nacha Preferred Partner, a PCI DSS Level 1 Processor, and an Inc 5000 Fastest Growing Company recipient. To learn more visit, www.icheckgateway.com.