Looking for the best payment solution to collect recurring payments? You’ve probably come across terms like ACH or EFTs in your searches, along with several other options. But we want to explain why ACH is the best way to collect recurring payments.

First, you should know that ACH stands for the Automated Clearing House, a form of payment processing operated by the ACH network across the US. This payment method is used by businesses to collect money directly from their customers through electronic bank-to-bank transfers. ACH is also sometimes referred to as direct debits, EFTs, or Pre-Authorized Debits (PADs), but we’ll just use the term ACH for now.

So without further ado, here’s 4 reasons why ACH is the absolute best way to collect recurring payments.

1. ACH payments are cheaper than credit cards

If you’ve got a business using credit cards to process payments, you already know what I mean. Credit cards can charge up to 2.9% in processing fees. That may seem pretty small but let me put it this way: If you’re charging 100 customers for your services priced at $100 a month, you can expect to pay an extra $290 a month just for credit card processing fees.

What about processing fees for recurring ACH payments? There’s a variety of third-party bank payment processors out there that are dishing out solutions to this credit card problem. They exist to provide a customer-friendly, cost-effective solution to businesses and offer different fees across the market. Most third-party processors will charge a flat-rate fee per transaction, which can end up saving you hundreds of dollars a month. This makes for an excellent solution for recurring payments!

2. ACH payments are faster, safer, and way more convenient than cheques

Cheques are disappearing for a reason. Who wants to spend hours crunching numbers at work? ACH payments require far less administrative effort than cheques because all you need to do is set up your one-time or recurring transactions and let the banks do the rest.

Can you imagine how much time it takes to write out a cheque and deliver it to the bank, or hope your customer’s cheque doesn’t bounce again? Maybe you don’t have to imagine it. Just check out online bank payment processors like Rotessa and save you the time (and paper.)

One more thing: Have you ever wondered where your cheque goes when it gets lost? ACH payments are federally secured and trackable, so you don’t have to worry about payments getting lost or stolen. That’s way safer than any other form of payment, and another great benefit for those recurring fees.

3. ACH payments are way easier to deal with than cash

Have you noticed hard cash is going extinct, too? Nowadays people are using their debit or credit cards to make their purchases. According to Payments Canada, cheques and cash have decreased by almost 30% in terms of volume since 2012! Cash is just as vulnerable to theft and loss as cheques are. 

But what makes cash even harder to deal with is the fact that you don’t typically get receipts using it. Sometimes, but not all the time. Tracking where you spend and earn your hard dollars can be unreliable for your business. You want to know if things are balancing out at the end of the month, right?

ACH payments are reliable, trackable, and federally secured. Again, perfect for collecting recurring payments!

4. ACH Payments are great for bookkeeping & accounting

Maybe you’re the type that loves bookkeeping and accounting, or maybe you loathe it. Either way, you’re probably the type of person that loves having more time to do more things.

ACH payments help you (or your bookkeepers/accountants) easily keep records of your payments electronically. Instead of shuffling through stacks and folders of paper, you can trust that your information is secured in an organized fashion. Plus, when tax time comes around, ACH payments make it easy to get all the information you need.

Lastly, you’ll know exactly when you’ve been paid because ACH payments are updated in real-time. No more chasing customers for late payments; go chase your dreams instead! That sounds cheesy, but it’s true.


So there’s your 4 reasons why ACH is the absolute best way to collect recurring payments. I hope it satisfies your curiosity as much as it’ll satisfy your wallet when you starting using them, too. If you don’t know where to start, no problem! Give Rotessa a try. Signing up is free, and there’s no need to worry about crazy percentage fees. Just give it a test run and see if you like the convenience of automated recurring payments!