Best ACH Payment Processing For Small Business

Payment Depot is a processor that focuses on credit card payment processing, but it also supports ACH payments. You’ll be placed on a monthly subscription plan starting at $79 per month. All ACH processing rates are 1% and capped at a $10 fee. So, an ACH payment of $500 will cost you $5, and for any payment of $1,000 or more, you’ll pay $10 per transaction.

There’s no long-term contract required to use Payment Depot, so if you find you aren’t saving money on fees, you can find another processor. You can set up invoicing with SwipeSimple’s software integration. Payment Depot also offers 24/7 support—you can contact a representative by phone, live chat, through social media or email.

Learn More: Read our full Payment Depot review.

Who should use it:

Almost any small business could benefit from using Payment Depot for ACH payment processing thanks to its low rate and cap per ACH payment.

Square is a popular small business management platform with all sorts of services, including ACH payment processing. You can only process ACH payments via Square Invoices, but it’s a free service, like its credit card payment processing service. With the basic Square download, you’ll also get access to a point-of-sale (POS) system and standard reports through the dashboard. Square offers phone, live chat and email support, but its hours are limited to 6 a.m. to 6 p.m. PT weekdays.

When you add on the free invoice feature, you’ll be able to send an unlimited number of invoices and estimates. You can track those invoices and estimates, along with cash flow and payments. Square also lets you send automatic payment reminders to clients. There is no fee for the basic Square invoice plan, but you can spend $20 per month to get features to help you manage projects, customize your invoices and create milestone payment schedules to make payment easier for clients. The transaction fee for ACH payment processing is 1% with a $1 minimum. The only downside is that there is no cap on the fee, however, there’s also no fee for failed ACH transactions.

Learn More: Read our full Square review.

Who should use it:

New business owners on a budget would do well with Square Invoices’ transparent flat-fee rates.

GoCardless is strictly an ACH payment processor, so you won’t be able to use it to process credit cards. There are two base transaction fees—one for U.S. payments and one for international. The transaction fee for U.S. payments is capped at $2.50, but there is a caveat. If you process a payment over $1,000, you have to pay an additional 0.3% to GoCardless.

• U.S. fee: 1% + $0.25, capped at $2.50
  • Add 0.3% for transactions over $1,000
• International fee: 2% + $0.25 (in customer’s currency)

This means if you process an ACH payment of $700, you would pay $2.50 because of the cap. But if you process one for $1,250, you would pay $2.50 plus $3.75 for a total of $6.25.

There’s no monthly fee for the basic GoCardless account—you only pay the transaction fees.

Who should use it:

Service-based businesses that typically expect recurring payments or subscription-based businesses.

Merchant One markets itself as an easy payment processing solution for nearly any type of business with a 98% approval rate. You can use its payment gateway for your online business and to accept ACH payments. It’s hard to know what your rate could be for a couple of reasons: One, because Merchant One doesn’t publish those rates, and two, because every business’s rates are likely to be different and based on credit scores. The qualified credit card rates vary from 0.29% to 1.99%, but there’s mention of caps. There doesn’t appear to be any markups in addition to the percentage costs, but there is a monthly fee that starts at $13.95.

What’s most concerning is that Merchant One isn’t the most transparent company with its rates or policies. Based on user reviews we read, Merchant One requires a three-year contract and if you cancel your contract early, you may be required to pay $250 to $750. There are more than 60 complaints on Merchant One’s BBB profile.

Learn More: Read our full Merchant One review.

Who should use it:

Businesses that have had trouble getting approval from other merchant service providers may find it easier to get an account with Merchant One.

Stripe is well known as an e-commerce payment processor with its flat-rate fee structure and multiple integrations with business management software. It’s more flexible than just that, though. You don’t have to stick with the standard 2.9% plus $0.30 per transaction—you can contact the sales team to set up a custom contract that may include discounts for high-volume sellers, for example. Rates typically range from 2.7% to 2.9% plus $0.05 to $0.30.

As far as ACH payment processing, Stripe charges 0.8% with a $5 cap, which is one of the most affordable rates out there. The only downside to using Stripe for ACH payments is that the company charges for failed payments—$4 per failed payment and $15 per dispute. If you’re fine with that gamble, Stripe could serve as your only payment processor. It integrates with more than 300 apps and it’s dev-friendly, so you can create a custom checkout (if you have the know-how).

Learn More: Read our full Stripe review.

Who should use it:

Developers can easily create custom checkouts with Stripe as the payment processor.

PaymentCloud is a good payment processor for nearly any business, but it markets itself as a solution specifically for high-risk businesses. Accepting ACH payments is one way to reduce risk anyway, but some industries are immediately turned away by some merchant services providers, such as adult entertainment, tobacco stores and tech support companies.

With all that said, PaymentCloud doesn’t publish any of its rates online. You’ll have to contact sales to get a custom quote, and your rates are likely to be based on your industry, credit check and your previous chargeback ratio. PaymentCloud works with more than one bank and those partnered banks take chances on high-risk businesses. You’ll be limited by volume for the first 90 days, and then you could get more if you keep your chargebacks low (less than 3%, typically). Keep in mind that high-risk businesses tend to pay more in fees.

Who should use it:

High-risk businesses are more likely to get approval from PaymentCloud versus more mainstream ACH payment processors.

Helcim is one of the best low-cost payment processors—there’s no setup or monthly fee and its markup on its interchange-plus pricing is affordable. The ACH payment charges are lower than most other merchant services providers, too. You’ll pay 0.5% plus $0.25 on all ACH transactions. There is no cap on how much Helcim charges, though. If you process a payment of $5,000, you’ll pay Helcim $25.25, making it a less viable solution for businesses that process large transactions.

There are no long-term contract requirements, so you can bow out if Helcim’s rates are too high. Bear in mind that Helcim charges $5 per failed ACH payment or dispute, which is lower than many other merchant services providers, but it could still add up if your chargeback ratio is high.

Learn More: Read our full Helcim review.

Who should use it:

Businesses that want the lowest ACH payment rates and no monthly fee.

Flagship Merchant Services has been around for decades and it’s a typical payment processor for all sizes of businesses. It isn’t the most transparent company, though it does make it clear it won’t publish rates on its website. To find out what your rate will be, you’ll have to contact Flagship’s sales department. The good news is that you can negotiate terms to get the best processing rate for your business.

There’s no specific information on its ACH payment processing, but Flagship does provide solutions for mail order and phone payments, so it must be able to set this up. There don’t seem to be any monthly fees and there’s no mention of contracts required, so this could be a good month-to-month billing solution. However, you may be subject to a three-year contract if you accept any free hardware from the company, so be aware of that.

Who should use it:

Mid- to large-size established businesses may be able to negotiate lower rates with Flagship Merchant Services.

The good news about Stax (formerly known as Fattmerchant) is that its low-priced plan includes ACH payment processing as an option. There are three plans from which you can choose: Growth at $99 per month, Pro at $159 per month and Ultimate at $199 per month. You’re limited to $500,000 in sales per year with these flat subscription prices. What the monthly cost covers, other than no markups to rates, is unclear.

Every subscriber to Stax gets a free terminal or mobile reader and access to the standard dashboard and reporting features. If you upgrade your plan, you’ll get access to digital invoicing and payment links, which are important for service-based businesses that typically rely on ACH payment processing. You’ll need the highest tier for recurring invoices and advanced reporting.

Learn More: Read our full Stax by Fattmerchant review.

Who should use it:

Stax by Fattmerchant may be best for businesses that can predict a high amount of sales per year to make the monthly subscription worth it.

National Processing offers packages tailored to industries. All of the packages have a monthly fee and either zero or low transaction fees. The plans start at $9.95 per month and charges 2.5% to 2.9% plus up to 30 cents per transaction. These plans allow for one-time and recurring payments. Unlike most ACH payment processors, National Processing charges a $25 setup fee.

As attractive as the pricing is from National Processing, be aware of the terms. You’re expected to sign a two- or three-year contract. This merchant services provider works with two banks, so depending on which bank you end up working with, you’ll have to pay either $495 or $595 for early termination.

Learn more: Read our full National Processing review.

Who should use it:

Businesses looking for a long-term ACH payment solution that’s affordable.