Understanding ACH Payments

In 2025, the Automated Clearing House (ACH) remains one of the most important payment networks in the United States. Behind the scenes, it reliably moves salaries, tax refunds, and bill payments between accounts at banks and credit unions. For global businesses using Due, ACH provides a way to connect digital wallets and stablecoin accounts with the existing banking system in the U.S., enabling seamless cross‑border transactions. This deep dive explores how ACH works, how it differs from wire transfers and electronic funds transfers (EFTs), and how businesses, especially those using Due, can use it to their advantage.

The information here is based on official sources such as NACHA (the administrator of the ACH network), the Federal Reserve and reputable financial publications and reflects the most recent data available in 2025.

What Does ACH Stand For?

ACH stands for Automated Clearing House. It is a centralized U.S. network operated by NACHA and the Federal Reserve that allows banks and credit unions to send and receive electronic transfers. Rather than sending paper cheques or initiating expensive card payments, the network bundles electronic payment instructions and routes them to the right institution for settlement. The term has been around since the 1970s and is now so embedded in modern finance that many consumers don’t realize their paycheck or mortgage payment is riding on ACH rails.

What Is an ACH Payment?

An ACH payment is an electronic transfer of funds between accounts at different financial institutions using the Automated Clearing House network. These transactions are widely used for direct deposits of wages, government benefits, tax refunds and for paying mortgages, utilities and subscription services. Fast forward to 2024, and the network handled 33.6 billion ACH payments, totalling $86.2 trillion in value, translating to a 6.7% increase in volume and a 7.6% increase in value year‑over‑year. Automated Clearing House payments are a type of electronic funds transfer (EFT), but they differ from other EFTs, such as wire transfers, in cost, speed, and network scope, as we will see later.

The ACH Network recorded important gains in both standard and Same Day ACH in the second quarter of 2025. To reach 8.7 billion, ACH payment volume rose 5%. Those payments were valued at $23.3 trillion, a 7.9% or $1.7 trillion increase from the year before. Same Day ACH continued along its growth trajectory. It recorded about 336.4 million payments, which had a value of $980.3 billion. Those are increases over the same period in 2024 of 15.1% and 22% in that order.

What types of ACH transactions are there? These payments fall into two broad categories:

1. Direct deposits (credits) – funds pushed into a receiver’s account, such as payroll, Social Security benefits, and tax refunds. When an employer initiates a payroll, they provide each employee’s bank details, and the bank (the Originating Depository Financial Institution, or ODFI) sends a file of credit instructions to an ACH operator. The operator sorts and sends the instructions to the employees’ banks (the Receiving Depository Financial Institutions, or RDFIs).
2. Direct payments (debits) – funds pulled from an account with the payer’s authorization. Examples include monthly utility bills or insurance premiums. The biller becomes the originator and instructs its bank (the ODFI) to pull funds from customers’ accounts.

Because the network combines many transactions into batches, Automated Clearing House transfers are efficient and cost‑effective. Due integrates directly with this network: its virtual U.S. dollar accounts provide local ACH routing numbers so that your customers can pay you just like they would any other domestic company.

Pro Tip: Most domestic ACH transfers rely on accurate routing transit numbers to identify the receiving bank or credit union. For a clear explanation of what they are, how they work, and where to find them, check out our guide: What Is a Routing Transit Number?

How Long Do ACH Transfers Take?

Same-Day ACH first went live in September 2016, starting with credit payments. In just its first six processing days, the new service handled about 1.3 million transactions, a clear sign of pent-up demand for faster bank-to-bank transfers. Over the years, its reach has grown. On March 19, 2021, NACHA added an extra two-hour submission window each business day, giving banks and processors more flexibility to push same-day funds through the network and making it easier for funds to land in accounts within hours instead of days. In fact, NACHA estimates that roughly 80% of ACH payments settle within a single day. Businesses using Due can settle even faster because Due uses digital stablecoins as an intermediary. For example, deposits can be converted into USDC or returned to fiat on the same business day.

Processing speed varies based on the transaction type and when it enters the batch cycle. Credits tend to settle in one day; debits are often required by NACHA rules to settle no more than one business day in the future. Weekends and bank holidays can delay settlement because the Federal Reserve’s settlement system only processes Automated Clearing House files on business days.

Who Uses ACH Payments?

ACH payments are pervasive in U.S. commerce. Employers, government agencies, consumers, and businesses all rely on them. Beyond payroll and tax refunds, people use ACH to pay mortgages, insurance premiums, subscription services and charitable donations. Employers value it because it reduces the cost of mailing cheques and ensures a timely deposit by 9 a.m. on payday. For consumers, the Automated Clearing House provides a secure way to pay bills or receive money without the hassle of paper. For businesses expanding internationally, ACH offers an on‑ramp into the U.S. banking system. Due’s platform makes it possible to receive ACH payments from U.S. customers while settling the funds into your preferred currency or stablecoin, bridging the gap between crypto‑native finance and traditional banking.

How ACH Payments Work?

Automated Clearing House payments flow through several participants: the Originator, the Originating Depository Financial Institution (ODFI), the ACH operator, the Receiving Depository Financial Institution (RDFI) and the Receiver. Here’s an overview:

1. Transaction Initiation: The originator (employer, biller, or individual) initiates a credit or debit instruction and provides the recipient’s routing and account numbers. In the Due ecosystem, you can generate virtual ACH routing and account numbers tied to your wallet.
2. Batch Creation: The originator’s bank (ODFI) groups multiple ACH instructions into a batch and sends it to an ACH operator (either the Federal Reserve or The Clearing House).
3. Sorting and Transmission: The ACH operator sorts the batch and routes each transaction to the appropriate receiving bank (RDFI).
4. Settlement: The RDFI debits or credits the receiver’s account, and the operator settles the net positions between the banks.

How to Make an ACH Payment

For individuals, making an ACH payment usually involves logging into your online banking portal or an app, entering the recipient’s routing and account numbers, specifying the amount and authorizing the transfer. The bank or app then initiates the request. To ensure accuracy, double‑check the recipient’s details; mistyped routing or account numbers can delay or misdirect funds.

Businesses using Due can fund an ACH payment in several ways:

• Bank Transfer: Deposit U.S. dollars into your Due account via ACH or wire. Due’s platform converts the deposit into USDC, enabling quick settlement.
• Stablecoin Transfer: Send stablecoins (e.g., USDC) from any wallet or exchange. Due holds the stablecoins in your wallet and, if needed, converts them to fiat when an ACH transaction is requested.
• Mobile Money: Available in approximately 12 countries, while the rest use local bank rails such as EUR SEPA, GBP Faster Payments, IDR Instapay, and other regional banking systems.

Once funded, you instruct Due to send an Automated Clearing House payment. Due packages the transfer with other customer payments, submits it to the ACH network and credits the recipient’s U.S. bank account. You can track the transaction in real time and choose same‑day or next‑day settlement, adjusting the cost accordingly.

How to Accept ACH Payments as a Business

To accept ACH payments, a business generally needs a bank account, a payment processor that supports ACH and a mandate (authorization) from the customer. The basic steps are:

1. Set up your business bank or digital account. If you use Due, you receive a virtual U.S. account number and routing number that customers can pay directly.
2. Update your checkout or invoicing flow to include ACH. Many checkout pages default to cards; you must explicitly provide an option for bank transfers. Due is currently finalising its Payment Links feature. Soon, Due’s API and links will let you embed ACH into invoices or e-commerce sites, no coding required.
3. Obtain customer authorization. Businesses need a signed or electronic agreement authorizing them to debit the customer’s account. For recurring transactions, the authorization must specify the amount, frequency and termination conditions.
4. Provide your virtual ACH details to customers. Due provides you with virtual accounts and routing numbers that customers can use to send payments. Customers initiate ACH transfers from their own bank accounts, pushing funds to your Due virtual account details. Due notifies you when the transfer is complete and posts the funds to your wallet.

Due simplifies these steps by eliminating the need for a traditional merchant account. You sign up, receive virtual accounts in multiple currencies and start accepting payments from customers worldwide via ACH, SEPA, Faster Payments and other local networks.

What Does It Cost to Accept ACH Payments as a Business?

ACH payments are inexpensive compared with card payments or wire transfers. A survey cited by Investopedia found that initiating an ACH transfer costs businesses roughly $0.26–$0.50 per transaction. Fees vary by provider; some banks offer free incoming transfers and charge only for outgoing debits.

Due’s pricing is designed for cross‑border commerce because it uses stablecoin rails and local settlement partners. Due charges as low as 0.2%, with all fees under 1%, for processing international payments. There are no monthly or verification fees. Businesses also save on currency conversion costs by holding USDC or EURC until they choose to convert, avoiding unfavourable FX spreads.

ACH Payments vs Wire Transfers

Both Automated Clearing House and wire transfers move money between bank accounts, but they differ in several key areas:

Is an ACH Transfer the Same as an EFT?

Not exactly. EFT stands for electronic funds transfer and is an umbrella term covering all digital money movements, ACH, wire transfers, card transactions and peer‑to‑peer payments. All ACH payments are EFTs, but not all EFTs are ACH transfers. Wires, debit card payments and even mobile money transfers in Africa are examples of EFTs that do not use the ACH network. When someone asks for an “EFT,” clarify which network or method they mean; cost, speed and authorization requirements differ across methods.

Benefits of ACH Payments for Businesses

Automated Clearing House offers several advantages over cash, cheques, credit cards and even some digital alternatives:

• Cost and Timing: Because ACH bundles transactions, per‑transaction costs are low, often less than $0.50 per transaction. Processing transactions electronically is faster than mailing cheques and eliminates paper handling.
• Security: NACHA mandates encryption and other security protocols for all sensitive information. Funds are delivered directly from one bank to another, reducing the risk of cheques being stolen or lost in the mail.
• Predictability and Automation: Recurring ACH debits allow businesses to automate subscription fees, loan payments and supplier invoices. Banks often allow businesses to schedule transactions up to a year in advance.
• Easy Reconciliation: ACH transfers provide rich remittance information. Digital statements and downloadable reports make it easier to match incoming payments with invoices.
• Access to More Customers: By offering ACH, you can serve customers who don’t have credit cards or prefer to pay from a bank account. This is particularly useful in industries where transaction values are high (e.g., B2B invoices, rental payments).
• Scalability: The ACH network processed tens of billions of transactions in 2024 and continues to grow. Businesses can reliably scale recurring billing and payouts without worrying about card expirations or high fees.

The Role of Automated Clearing House in Modern Business

Walk into any bank in America, and Automated Clearing House payments are quietly moving money behind the scenes. They combine affordability, reliability, and wide acceptance, making them ideal for payroll, recurring bills, and cross-border collections. Recent rule changes have shortened settlement times, and innovations like Same‑Day ACH mean that transfers now clear as quickly as many wire payments.

For businesses using Due, ACH is not just a domestic convenience; it’s a gateway to a seamless global network. The Automated Clearing House may be more than half a century old, but with modern fintech integrations, it remains a vital part of the digital payments ecosystem.