ACH direct debit is a payment method where the store directly pulls funds from a customer’s bank account using the Automated Clearing House (ACH) network. ACH is a U.S. financial network for electronic bank-to-bank payments.
ACH can be useful for high-ticket items where card fees would be costly and for B2B payments (invoicing, account-based purchases).
How it works
Customer enters their bank account info (routing + account number) at checkout.
The store, via a payment provider, gets authorization to debit the account.
The store submits the debit through the ACH network.
Funds are typically received in 1–3 business days.
Benefits
Lower fees than credit card transactions.
Reduced chargeback risks (fewer disputes compared to cards).
Drawbacks
Slower processing than cards or instant payment methods.
Insufficient funds or bank rejections can cause delays or failed payments.