ACH vs. Credit Card Payments: Which is Right for Your Business?
Speed or savings? Understanding when to use each payment method can save you thousands a year.
For most freelancers and small businesses, credit cards are the default payment method because they're fast and frictionless. But for larger invoices, sticking to card-only payments is one of the most expensive habits a business owner can have. Understanding when to use ACH can dramatically improve your margins.
What is an ACH Transfer?
ACH stands for Automated Clearing House — a US financial network that facilitates direct bank-to-bank transfers. When a client pays via ACH, money moves directly from their business checking account to yours without involving a card network. This eliminates most of the fees you'd normally pay.
The Fee Difference is Dramatic
| Invoice | Card Fee | ACH Fee |
|---|---|---|
| $500 | $14.80 | $4.00 |
| $2,500 | $73.00 | $20.00 |
| $10,000 | $290.30 | $5.00 (capped) |
When to Use Each Method
- • The invoice is under $500
- • Speed is critical
- • It's a new or one-time client
- • The client prefers card rewards
- • Invoice is over $1,000
- • It's a recurring/retainer client
- • You can wait 2–5 business days
- • You want fewer chargebacks
Compare ACH vs. credit card fees on your exact invoice amounts using the calculator.
Compare Fees →