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ACH Payments

It’s now possible to accept ACH payments on Invoiced!ACH, which stands for Automated Clearing House, is the financial network...

It’s now possible to accept ACH payments on Invoiced!

ACH, which stands for Automated Clearing House, is the financial network responsible for most banking transactions in the United States. With ACH payments your customers can pay using their bank account. Best of all this means lower transaction fees for you, the merchant. Transactions only cost 0.8% each, capped at $5.

We believe that ACH is a big win for larger transactions and business-to-business payments. Although credit cards are convenient for paying online, the transaction fees can be cost prohibitive. With ACH any transaction over $625 only costs $5. This is cheaper than most wire transfers. Best of all, Invoiced will automatically track incoming ACH payments, and mark invoices as paid once they succeed, all without you having to lift a finger.

Another plus is that ACH payments work with automatic collections, just like credit cards. This means ACH payments can be used with recurring billing.

ACH is being launched as a beta for customers on Startup or Growth plans. Stripe powers our ACH payments, as with credit card and bitcoin payments, which makes it easy to get started. The first step is to connect your Stripe merchant account, if you have not already. Then it’s just a matter of turning on ACH payments for Invoiced in Settings > Payments. It’s that simple!

Here’s how ACH payments work for your customers:

  1. Your customer clicks the Pay Invoice button. They select ACH as the payment method.

    ach-payment-method

    ach-payment-method

  2. Next we will request they connect and verify a bank account, either using either instant verification or micro-deposit verification. With instant verification customers simply sign in to their online banking account and select an account to pay with, eliminating the need for bank account and routing numbers.

    ach-payments-instant-verification

    Instant verification only works with a select number of supported banks. If the customer does not have a supported bank account then we have to verify ownership of their account using micro-deposits. It works by issuing two small deposits to your customer’s bank account. We will then ask your customer to confirm the amounts. It generally takes 1-2 business days for these deposits to appear.

    ach-payments-micro-deposit-verification

  3. Once the account has been connected and verified the customer can now pay the invoice!

    submit-ach-payment

     

    Since ACH payments are not instant we will create a pending transaction. Once the transaction succeeds the invoice will be marked as paid.

    pending-ach-payment

     

The timeline for ACH transactions to succeed is generally 3-5 business days. If using micro-deposit verification then that could add another 2 business days. You can learn more in our ACH docs.

Overall we’re very excited how this release could benefit our merchants. Invoiced is about letting you get paid how you want with minimal hassle. We feel this is another positive step towards that goal. Please feel free to reach out with any questions or comments.

Happy invoicing!

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