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The ACH and eCheck Advantage for Businesses and Software Developers

Stop handling paper checks, and learn why going digital is faster, more secure, and more convenient for your customers and software users.

Electronic payments through the Automated Clearing House (ACH) network offer a great alternative to traditional paper checks and credit card payments for both businesses and consumers. ACH payments, also known as eChecks or Pay By Bank payments, leverage the secure ACH network that banks use to transfer money electronically. This allows funds to be pulled directly from a customer's bank account to make payments and transfers. 

Advantages for Businesses

  • Lower processing fees - ACH transactions tend to have lower processing costs compared to credit card payments, saving merchants money on each transaction. Rates are usually a flat fee per transaction instead of a percentage of the total.
  • Faster settlement times - While slower than credit card payments, ACH transfers generally settle funds in 1-3 business days. This provides quicker access to revenues compared to waiting for paper checks.
  • Guaranteed payments - While ACH payments can bounce if funds are not available in the account, they are less risky than checks. As long as account information is valid, ACH transfers have a higher likelihood of going through compared to paper checks that can bounce for multiple reasons. This reduces payment risks for merchants
  • Recurring billing - Merchants can easily set up recurring, automated ACH payments from customers for subscriptions, installments, etc. This creates predictable revenue streams.

Benefits for Software Developers

For independent software vendors (ISVs) and platforms providing payment services, integrating ACH capabilities also provides advantages:

  • Expanded payment options - Being able to accept ACH/eCheck payments allows ISVs to offer more payment choices to merchant customers. This provides flexibility and meets consumer demand.
  • Reduced liability - With ACH payments, the funds transfer directly between bank accounts. This reduces risks and regulatory requirements for ISVs compared to storing card information.
  • New revenue streams - ISVs can generate revenue from ACH payment processing through transaction, gateway, or integration fees. New monetization models are enabled by ACH capabilities.
  • Stickier Customers - The more ways to pay and in-depth integrations, has proven to extend the customer life cycle of software users.

By making eCheck and bank transfer options available through their platforms, ISVs can attract more merchant customers, stay ahead of payments innovation, reduce risks, and unlock new revenue opportunities. The continued growth of ACH makes it a capability worth investing in.

How Paystri Can Help

Stop handling paper checks, and learn why going digital is faster, more secure, and more convenient for your customers and software users. Integrating ACH and eCheck payments through Paystri's payment platform can help you attract more merchants, reduce risks and costs, and unlock new revenue opportunities. Contact Paystri today to take advantage of the benefits of ACH and eCheck capabilities.


In conclusion, integrating ACH and eCheck capabilities provides significant benefits for both businesses and the ISVs that serve them. For merchants, ACH allows accepting affordable digital payments directly from customer bank accounts. This enables easy recurring billing, faster settlement than checks, and guaranteed funds. For ISVs and payment platforms, supporting ACH payments means offering better service to clients with more payment options, while also reducing risks and costs compared to card payments. ACH transactions can also incentivize product development and open up new revenue streams. 

As commerce continues transitioning from paper to electronic payments, the scalability, security, and cost-effectiveness of the ACH network will provide opportunities for innovation and growth for FinTech providers and merchants alike. Businesses can optimize operations, while ISVs can better compete through advancing ACH integration and eCheck technology.

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