Back to Blog
ACH

Key Differences Between ACH And Credit Card Processing

July 20, 2021 • by jclarknationalprocessing-com

Your company needs all of the possible tools out there in order to truly succeed, but it can be difficult to really know just what it is that you need at any given time. When it comes to the different options for accepting payments from your clients or customers, that’s even truer. Here at National Processing, we know that the process of selecting a credit card processing company is one that you’ll take seriously, and we want you to fully understand everything about it, including ACH debit vs credit.

For accepting credit cards and credit transactions, one of the biggest areas of confusion is certainly that of figuring out the differences between credit card processing and ACH. Here’s a quick breakdown of the two so you’ll know which is the best call for your situation.

ACH Payments

The biggest difference lies in where the money actually comes from. ACH payment, or Automated Clearing House, is essentially a bank transfer process. It moves funds from one bank account into another, and is usually what occurs when a customer pays with a check that is approved electronically or when a direct debit payment is made.

Credit Card Processing

Credit card processing, on the other hand, is slightly different and focuses more on removing funds from a credit provider’s account and placing them into the merchant account while then noting that the purchaser owes the credit provider the funds. Most in the industry agree that while ACH comes with slightly more risks – notably the fact that some purchases may be rejected by a bank due to inadequate funds or other similar issues – it’s often more cost-effective thanks to the fact that it has lower processing costs.

In other words, you’ll pay a slightly lower fee but will have a bit more risk than you would with standard credit card processing. The biggest difference between the two is that with credit card purchases, the merchant will essentially lock in the funds that they’re owed.

Key Differences

With ACH, there’s less of a guarantee but somewhat higher rates. The one that is best for you really depends on just what you need from a processing provider, and it’s important to spend a few minutes reviewing the basics and the fine print you’re provided with before you agree to anything. In both instances you’ll be able to begin accepting some form of online or in-store credit/debit card purchases. The key is understanding just what your rates will be and how customers can make purchases.

Aside from that, the differences slight.

Blog Search
Most Read Blog Articles
High Risk Check Processing High Risk Check Processing July 20, 2021
The Key Disadvantages Of POS Systems The Key Disadvantages Of POS Systems July 21, 2021
Voice Authorization Basics Voice Authorization Basics July 20, 2021
Reddit Small Business: 4 Subreddits That Are Perfect for SMB Owners to Join Reddit Small Business: 4 Subreddits That Are Perfect for SMB Owners to Join July 21, 2021
Understanding What Registered ISO/MSP’s Are Understanding What Registered ISO/MSP’s Are July 21, 2021
Blog Categories
All posts 110
ACH 21
Cash Discount 11
Chargebacks 5
Clover 1
Credit Card Processing 88
Credit Card Reader 8
Educational Resources 8
EFT Payment 15
Featured 4
Funding 4
Interchange-Plus Pricing 2
Other 11
Recurring Payments 1
Regulation 1
Security 7

    Step 1/2

    Start Processing Payments Now

    No pushy sales.Transparent, straightforward pricing.

    What Can We Help You With?
    Credit Card Processing
    ACH Processing
    POS Solution
    eCommerce/Gateway
    Cash Discount
    Other
    Monthly Processing Volume
    $50,000 or Less
    $51,000 to $250,000
    $250,000 or More
    Industry
    Accounting/Bookkeeping
    Advertising
    Amusement & Entertainment
    Automotive
    Bars
    Business Services
    Car Sales
    Charity/Donations
    Clothing & Accessories
    Construction
    Contracted Services
    Debt Consolidation
    Direct Marketing
    Education
    Firearms & Ammunition
    Government Services
    Home & Garden
    Lending/Capital
    Liquor Stores
    Marketing
    Medical
    Miscellaneous Stores
    Personal Services
    Professional Services
    Tax Services
    Rent/Real Estate
    Repair
    Restaurants
    Retail Store
    Telecom
    Transportation
    Utilities
    Wholesale
    Other
    Required Field
    Required Field
    Required Field
    Required Field
    Required Field

    Thank you!

    Your inquiry has been sent

    We will contact you asap!