ACH processing for HIGH RISK Businesses


is also known as e-check  payment processing offers a flexible payment option for your business. Automated clearing house (ACH) payment processing services allow the merchant to accept check payment online that’s why it’s also known as an electronic check. ACH  processing helps small businesses to increase sales and also by ACH, the businesses will be able to reduce costs associated with paper check processing. These payment methods help merchants to expand their capabilities and also by these modes of payments merchants are able to provide flexible payment methods to the customers.

iPayTotal’s eCheck Automated Clearing House (ACH) payment processing services allow Merchants to accept electronic check payments, increase sales and reduce the costs associated with paper check processing.

  • Expand processing capabilities and provide flexible payment options with iPayTotal’s eCheck (ACH) processing

  • Integrate check readers to electronically deposit checks to your bank account for simplified payments

  • Prevent eCheck (ACH) and credit card fraud by complying with PCI DSS standards

  • Save time and money by eliminating trips to your bank.


You heard about the check payment process, the ACH payment process is also just similar to that traditional paper check process. For an immediate transfer, the payment is verified and sent electronically. Businesses often use ACH and credit card merchant processing as an alternative to accepting paper checks and other modes of payment.

With the iPaytotal’s ACH processing solution, Merchants can provide customers with another flexible payment option and accept electronic checks safely and efficiently. Similar to the paper check process, ACH payments are transmitted electronically for faster authorization and simplified transactions. Merchants save time and cut costs associated with traditional check payments, while improving customer service and increasing profits.

Benefits of ACH & Credit Card Merchant Processing

You can be able to increase your sales dramatically with merchant account because most people use the credit card and ACH payment processing as their first priority for payment today. By these form of payment mode, you’ll be able to feel your customer secure and you also feel secure. It will also allow you to keep track of your financial transactions and you keep better track of your financial transactions because when you sign up for merchant account for your business, you will receive a monthly statement of all your transactions and money you have received and these monthly statements are really very helpful at the time of tax.ACH & credit card creates several benefits for businesses. For example-

  • ACH & credit card payments are easy to handle
  • The main benefit is they are affordable (Affordability)
  • Businesses are able to expand themselves because of the availability of long-distance payments


    Accept online checks through iPayTotal’s virtual terminal, which allows E-commerce businesses to accept payments from any device with an Internet connection. Our ACH payment processing system integrates check readers to electronically deposit checks to Merchant’s bank account, eliminating trips to the bank to manually deposit checks. We work seamlessly with any bank to make sure your electronic checks are deposited safely and efficiently. With eChecks, you can access your ACH transactions online to better manage your business, your payments, and your customers.

ACH   processing

There are two types of ACH transactions. One is in which money is credited (ACH credits), and another one in which money is debited (ACH debits). Use of ACH payments are as follows:

  • Customers pay for the service provided by the service provider
  • Funds deposited by the employers in the Checking accounts of employees
  • To transfer fund from one bank to another by the consumers
  • To pay suppliers for their products in businesses
  • Funds sent to IRS or local or local organizations online by the taxpayers

    Automated clearing house (ACH) is the third phase of transition by SDA, implementation of this third phase is taken place on March 16, 2018.

    The first phase goes into effect in September 2016 but this phase is applicable only for credits, and only to transactions between US banks and another demerit of the first phase is it applies only to transactions less than $25,000.

    If we talk about the second phase which initiated by SDA debits, now you can pull money from a customer’s account if you have proper authorization but the demerit of the second phase is that ACH debits can be used by US banks only and must be less than $25,000.

    ACH sets up a more streamlined funds availability timeline which is required by Received Depositary Financial Industries (RDFIs). If you are interested in same day ACH, then we are here to provide you with high – risk merchant account for credit card processing.


    Electronic data theft is becoming complex day by day, making it crucial for businesses to take the proper precautions when accepting credit cards and ACH payments. iPayTotal’s ACH payment processing products comply with PCI DSS (Payment Card Industry Data Security Standard) and are compliant, ensuring the highest levels of security to protect merchants, businesses, and customers from credit card and ACH fraud.

    Advantages for small businesses are as follows:

    • For debits, it enables to pay more quickly than any other mode
    • Ach allows funds to be withdrawn from your account in 3 business days, it allows keeping your money longer.
    • If you forget to make a payment, then it allows you to avoid late fees also
    • Allows processing emergency payroll in any emergency cases
    • Also allows to processing payroll for hourly workers

    In market small businesses faces challenges daily, merchant account makes it easy for small businesses to accept credit cards so you can focus on growing your business.

    ACH is a much secure and safe mode of payment because it is maintained by the NACHA national automated clearing house association and also regulated by the federal government. Having the support of the government and NACHA means it is the most secure and safe payment mode available.

7 Things You Should Know Before Setting Up ACH Billing

ACH billing has lower transaction fees compared to credit/debit card processing.

In most cases, ACH transactions are less expensive for merchants than credit and debit card transactions if the processor is charging a flat transaction fee. Another added benefit of setting up ACH billing is that you do not have to worry about incurring a non-qualified surcharge on transactions—the flat rate is the flat rate.

All of this depends on the rates the credit card and ACH processors are charging.  If Merchants are using a gateway that charges extra per transaction, that cost should be factored in on both sides as well. So, if based on average transaction size and rates the providers are offering, the cost ends up being net/net.

ACH billing has different processing times

  • A credit card transaction (depending on the card) can take 2-3 days to process.
  • ACH billing takes about 3-5 days processing, but most banks favor ACH transactions over paper checks when making funds available.

When weighing the benefits of cost-savings and customer convenience, be sure to factor in the processing time. This can make a difference when forecasting the cash flow.

Yes, ACH billing is different than a debit card transaction

This might be obvious to some and confusing to others. They both come out of the customer’s bank account, but the processing form is completely different. From a customers’ perspective, they are providing you with authorization to debit their bank account with a routing and account number instead of swiping or keying in a debit card number.

For Merchants, besides the processing time and transaction cost difference, they would be dealing with an entirely different partner to process the payment.Unless Merchants have a 3rd party software provider who handles all the customer support, you’ll be dealing with different chargeback policies and you’ll be contacting a different party if any issues arise on the transaction.

ACH billing payments can still return for NSF

ACH payments can also return as NSF (non-sufficient funds), even if the transaction initially goes through. Until and unless you’re set up for check verification or check guarantee (both of which typically include a hefty per transaction charge), your ACH payments can still return NSF. When processing the transaction on the spot, the system is only checking to see if that account actually exists at that routing number—not if there are funds available for the transaction amount.

Consider limiting ACH billing to certain trusted customers if you have experienced a high NSF rate with paper checks or know that your customers have the tendency to have un-reliable payment forms.

ACH transaction fees will be debited separately from your other transaction costs

ACH transactions are processed through a different merchant account and a different provider—meaning that the fees debited for the transaction and/or gateway costs will be separate.Keep this in mind when it comes to keeping your books of account.

ACH billing requires authorization .Similar to any payment form, you must have authorization from your customers:

  • For a check, they would sign the check before sending it to you.
  • For credit cards, they would sign a receipt, swipe their card, or sign a form.
  • For ACH, it is a similar process and is usually acquired by a signed form, or can also be obtained over the phone.

    When setting up ACH billing, be sure to learn how to authorize your particular types of transactions—as with any customer transaction, it’s important to protect yourself from disputes and potential fraud.

    If your business has one-time, recurring, or unique billing activities, ACH billing is typically flexible enough to suit your needs. Customers can authorize payments for variable amounts, recurring amounts, varying dates, or not to exceed certain amounts.

ACH billing has different dispute policies than credit cards

According to NACHA, the organization that oversees the Automated Clearing House (ACH) network rules, there are only three reasons people can dispute ACH charges to their account:

  • If it was never authorized by the account holder
  • If it was processed on a date earlier than authorized
  • If it is for an amount different than authorized

    Disputing an ACH charge requires that the account holder provide notice to the bank in writing (or the electronic equivalent) that one of those conditions exists. (Note that this is significantly different from credit card transactions where a customer can have a charge reversed simply by claiming that the product or service received was not what they expected.) In this way, ACH billing can protect the merchant a little more from fraudulent consumers.

ACH Network: How it Works

How the ACH Network and ACH Payments Work: NACHA includes Members in the process of establishing Rules for the ACH Network, working collaboratively to create a clear picture of participant roles and responsibilities in the following ACH transaction process.

  1. An Originator– whether that’s an individual, a corporation or another entity– initiates either a Direct Deposit or Direct Payment transaction using the ACH Network. ACH transactions can be either debit or credit payments and commonly include Direct Deposit of payroll, government and Social Security benefits, mortgage and bill payments, online banking payments, person-to-person (P2P) and business-to-business (B2B) payments, to name a few.
  2. Instead of using paper checks, ACH entries are entered and transmitted electronically, making transactions quicker, safer and easier.
  3. The Originating Depository Financial institution (ODFI) enters the ACH entry at the request of the Originator.
  4. The ODFI aggregates payments from customers and transmits them in batches at regular, predetermined intervals to an ACH Operator.
  5. ACH Operators (two central clearing facilities: The Federal Reserve or The Clearing House) receive batches of ACH entries from the ODFI.
  6. The ACH transactions are sorted and made available by the ACH Operator to the Receiving Depository Financial Institution (RDFI).
  7. The Receiver’s account is debited or credited by the RDFI, according to the type of ACH entry. Individuals, businesses and other entities can all be Receivers.
  8. Each ACH credit transaction settles in one to two business days, and each debit transaction settles in just one business day, as per the Rules.

    Third-Party Service Providers also perform vital services for ACH Network users such as Originators, ODFIs, RDFIs, and Receivers. When engaged and authorized, these Third-Party Service Providers can perform Network user functions, arrange transactions and otherwise increase efficiency for ACH Network participants.


Why not start growing your business with us, we feel really glad to assist you for ACH & credit card merchant processing services. To know more just fill out our short form and we’ll get back to you.

iPayTotal specializes in providing small scale businesses with ACH processing solutions.We have been working with small scale businesses for over years now, helping them securely collect payments from their customers. If your business has a need to electronically draft out payments from clients, then we can help!

With our system, your business can set up one-time and recurring payment drafts to be taken directly out of your customer’s checking or savings account. Everything is managed online in our secure merchant CRM which you access by logging in with secure credentials we provide for you.For more information, you can email us at or call us at +44 800 776 5988

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