ACH vs. credit card for B2B invoices: what each really costs

How card payments are priced

A card payment costs a percentage of the amount, sometimes plus a small fixed fee. Most of that cost is interchange, set by the card networks and paid to the bank that issued the card. The rest goes to the processor and the networks.

Business, corporate and rewards cards carry higher interchange than a consumer's debit card. That's why accepting cards in B2B often costs more than a business expects: your customers' companies pay with exactly those cards. At a 3% card fee, a $12,000 invoice costs $360 to collect by card.

Some business card payments can qualify for lower interchange when extra order details are sent with them (often called Level 2 and Level 3 data: the tax amount, the customer's PO number, line items). Ask your processor whether it supports them.

How ACH bank payments are priced

An ACH payment moves money between bank accounts through the ACH network. Providers usually charge a fee per payment, often flat, whatever the amount. Some charge a small percentage with a cap.

That's what makes ACH the cheap way to collect large invoices: the fee on a $12,000 payment can be the same as on a $120 one.

How fast each one arrives

• Card: approved in seconds at checkout. The money usually reaches your bank in a day or two, depending on your processor.
• ACH: the customer authorizes a debit from its account, and it usually settles in 1 to 2 banking days. Same-day ACH exists for faster settlement, typically at a higher fee.
• Until an ACH payment clears, treat it as on its way, not as paid: it can still fail.

The risks are different

With cards, the risk is a chargeback: the cardholder asks its bank to take the payment back, sometimes weeks or months later. You answer with evidence, and the bank decides.

With ACH, the risk is a return: the customer's bank sends the payment back, for insufficient funds, a closed account, or because the debit wasn't authorized. Most returns arrive within two banking days. A consumer can claim an unauthorized debit for up to 60 days, while for business accounts the window is much shorter.

What your customers prefer

A single café or a small store often pays by card: it's quick, and some owners want the rewards or the extra days before their card bill is due. Larger customers with an accounts payable team often prefer bank payments, especially for big invoices.

You don't have to choose for them. Put both on the invoice and let each customer pay its way.

A third option: passing on the card fee

Some businesses add a surcharge to credit card payments so the customer covers the processing cost. Card network rules allow it for credit cards (never for debit), up to a cap, with notices to the customer before the payment and on the receipt. Some states restrict or ban it, so check the rules where you and your customers are before you start.

A simple policy that works

• Offer card and bank on every invoice, on one page.
• On large invoices, make bank payment the first button: it's the cheapest for you and costs your customer nothing extra.
• Where it's allowed and your customers accept it, pass the card fee on credit cards.
• Count a bank payment only when it clears, and follow up right away when one is returned.