What is ACH?

ACH (Automated Clearing House) payments are a convenient and cost-effective way to manage payments for your business. In this guide, we'll explain what ACH payments are, how they work, and how you can use them in the Zomentum platform.

What are the different types of ACH transactions?

ACH transactions primarily come in two forms: Direct deposits and direct payments.

Direct Deposits

In a direct deposit, the payer is the one who initiates the transaction to send funds directly to a recipient's account. This is commonly used for purposes such as paying salaries or wages to employees, making interest payments, or sending government benefits to individuals' bank accounts.

Direct Payments

On the other hand, direct payments are initiated by the recipient, who requests funds to be automatically withdrawn from the payer's account. This method is often employed for collecting recurring payments, like monthly utility bills, mortgage installments, or subscription fees. Recipients use direct payments to ensure a smooth and hassle-free collection of funds owed to them.

2.9% + $0.30 per transaction
Chargeback fee: $15
Settlement time: Up to 2 days
ACH Transfer
0.8% + $0.30 per transaction
Chargeback fee: $15
Settlement time: Up to 5 days
*VAT applies to all fee
1.9% + €0.20 per transaction
Chargeback fee: €15
Settlement time: Up to 2 days
BACS Direct Debit
1% + €0.20 per transaction
(capped at €4.00)
Chargeback fee: €15
Settlement time: Up to 5 days
2.9% + £0.20 per transaction
*VAT applies to all fee

How long does an ACH payment take?

The timeline for ACH transactions can extend beyond three working days before the funds become visible in your bank account. Additionally, the timing of when you submit the ACH file to your bank is a critical factor influencing processing duration. An ACH transaction process may encounter failures for a variety of reasons, which can further extend the overall processing time.

How ACH Payments Work?


The process starts when a user initiates any ACH payments. This can be for services, subscriptions, or any other payment type.


The user will need to authorize the payment by providing their bank account information. This typically includes the bank's routing number and the user's account number.

Payment Processing

The user submits the payment information to the ACH transfer, which then processes the payment request. This may take a few business days, depending on various factors.

Funds Transfer

Once the payment is processed and approved, the funds are transferred from the payer's bank account to the payee's bank account.


Both the payer and payee will receive confirmation of the transaction, and a record of the payment will be available within the Zomentum platform.


Wire transfer

ACH transfers and wire transfers are two distinct methods of moving funds between accounts, with differing characteristics. ACH transfers are typically more time-consuming, while wire transfers are known for their speed, albeit at a higher cost.

Given the combination of its speed and cost-effectiveness, wire transfers are typically chosen for large-sum and time-sensitive transactions, whether within the United States or for international transfers.


Transfer Speed

ACH transfers are recognized for their efficiency, yet they may require several days to process. In contrast, domestic wire transfers often achieve completion within mere minutes or hours.


Cost Consideration

ACH transfers are economical, incurring minimal fees at most. Conversely, conducting a domestic wire transfer in the United States usually comes with a higher price tag, typically ranging from $20 to $30, and the recipient may also encounter associated fees.


Real-Time Processing

Wire transfers operate in real-time, resulting in swift delivery. Therefore, U.S. wire transfers are often promptly received, often within hours and sometimes even minutes.

Benefits of Using ACH Payments with Zomentum

ACH payments are a powerful tool for MSPs to streamline their billing and payment processes, improve financial stability, enhance security, and offer convenience to clients. They contribute to the overall efficiency and competitiveness of MSP businesses while reducing operational costs.

Cost-Effective Transactions

ACH payments are generally more cost-effective compared to traditional payment methods such as checks and credit cards. MSPs can save on processing fees and reduce the overhead associated with paper-based transactions.

Predictable Cash Flow

With ACH payments, MSPs can establish regular, recurring billing for their services. This creates a more predictable cash flow, making it easier to plan for expenses, investments, and growth.

Automated Billing

It reduces the need for manual invoicing and payment tracking, saving time by reducing administrative overhead and ensuring invoices are consistently sent and paid on time.

Enhanced Security

ACH payments are highly secure, reducing the risk of fraud. They use encryption and multiple layers of authentication to protect sensitive financial information. This reassures both MSPs and their clients that their financial data is safe.

Faster Processing

ACH payments are typically processed faster than traditional checks, which can take days or weeks to clear. Faster processing means MSPs receive their funds more quickly.