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Learn more about ACH Payment Processing with Zen Payments

ACH Payment Processing

ACH payment processing is faster and more secure than standard credit card processing. As a result, payments made by ACH are often charged lower fees. As a merchant, it’s useful to find ways to incorporate ACH payments as an option to your customers.

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What Is ACH Payment Processing?

ACH stands for Automated Clearing House. This is the main system companies use to transfer funds electronically from financial entities. ACH has its own regulations which outline the liabilities of parties involved with the transaction. When the term ACH is used to describe a type of payment, it refers to a direct transfer of funds that are usually made through online channels.

Merchant Account with ACH Processing

If you want to process payments using only ACH transfers, there are a number of merchant accounts you can choose from. Many payment processing companies have this option as a high risk solution because it’s considered a more secure payment. For example, charities who choose to accept donations by setting up booths, subscription merchants, and leasing companies are three types of businesses who can benefit from ACH processing.

Best High Risk ACH Merchant Account

The best ACH merchant accounts provide an excellent way for businesses to reduce processing fees and get approved fast with a payment processing resource. Moreover, they guarantee that you get paid for the products and services you provide by offering more security and lower chances of chargebacks.

Your ACH merchant account connects directly to your payment gateway. Ensure you get the most out of your payment processing by offering this reliable secure solution for direct transfers.

ACH vs Direct Debit

These terms are often used interchangeably and refer to the same method of payment. ACH is a colloquial way of describing the system that makes the transaction happen. On the other hand, direct debit is the type of transaction itself. They both involve sharing banking information in order to send wire transfers immediately.

Most commonly direct debit is used for payroll, any new employee at a company who wants their paycheck to automatically be sent to their bank account will sign up for this type of service. Additionally, businesses that don’t want to pay transaction fees such as suppliers and manufacturers will ask to receive wire transfers of this type.

Industries That Use ACH Payment Processing

The best industries for ACH payments are ones that require reliable consistent payments or large transactions. For example, international companies who manufacture machine parts want to see money in their account before shipping products out. This is where direct wire transfers prove very useful.

MOTO Payments

MOTO is an acronym that stands for Mail Order or Telephone Order. If you’ve ever watched the Home Shopping Network or a televised charity marathon, you’ve seen them taking MOTO payments. These payments can be uniquely tricky because there is little security measured involved with validating identity.


Mail order payments are sent via standard mail with customer payment information included. They are riskier because many parties can intercept the mail and there is a physical record of your payment information. Similarly, a person on the other end of the phone my write down your credit card numbers when they take a telephone payment.

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