ACH Payments for Business: A Reliable Way to Send Transactions in 2026
If your business is growing but you’re still doing business via fee-laden credit card transactions or paper checks, you’re not alone. When your business is thriving, exploring new payment options is just one more item on your to-do list. At TowneBank, our goal is to find banking solutions that help your business run more smoothly. But if you’re not taking advantage of the convenience of ACH payments for business, you could be spending more time and money than you need to. Outdated payment methods can restrict your cash flow, take up valuable time with administrative work, and affect vendor relationships.
ACH payments for business allow you to move money more efficiently, securely, and affordably. As a result, you can simplify your routine financial operations and spend more time growing your business. With a trusted local partner like TowneBank, this transition is easier than you might expect.
What are ACH Payments?
ACH is short for Automated Clearing House. The ACH network facilitates electronic payments and money transfers between banks, credit unions, and other financial institutions. It’s commonly used to process transactions in batches, providing convenient solutions for payroll, ACH payments to vendors, customer invoicing, and bill payments. Because it processes transactions in batches, not one by one, it is a more affordable option than other payment types. For the third quarter of 2025, the ACH network recorded 8.8 billion payments valued at $23.2 trillion, with business-to-business payments growing at a 10% increase.
How Do ACH Payments for Business Compare to Wire Transfers?
ACH transfers and wire transfers are similar in that they both move money electronically between bank accounts. However, wire transfers are typically the faster solution for large one-time payments—but they do incur higher fees. In comparison, ACH transfers are more affordable and convenient for recurring, routine transactions.
The Automated Clearing House Network is governed by Nacha, or the National Automated Clearing House Association, which allows for transfers between all U.S. bank and credit union accounts. Nacha establishes security, compliance, and timing standards for ACH transactions. They also provide risk management training and advisory services to financial institutions to ensure the safety and reliability of this type of electronic funds transfer. When you combine the security of ACH payments for business with the personalized local service of TowneBank, your business reaps the benefits.
Benefits of ACH Payments for Business
Choosing ACH payments for your business benefits your company and supports its ongoing growth in a number of ways. Here are 3 examples:
Increased Accuracy and Reliability
Automation reduces the risk of errors across most workflows, and payment processing is no different. Using ACH payments for business leads to fewer errors and lost payments. Your business enjoys more predictable cash flow, clearer audit trails, and easy reconciliation across bank accounts at the end of each month.
Save Time and Money with ACH Payments for Business
When it comes to cost-effective measures, there’s no competition between checks and ACH business payments. The median cost of issuing a paper check falls between $2 and $4, according to a benchmarking survey conducted by the Association for Financial Professionals. In comparison, the median cost of initiating or receiving an ACH payment is generally between $0.26 and $0.50. This large of a payment margin adds up quickly, particularly for small businesses, businesses with slim profit margins, and businesses with frequent transactions. The automated nature of ACH transactions means that your team spends less time tracking down payments and manually handling checks—and more time helping your business grow.
Enhanced Security
ACH payments for business are encrypted and tightly regulated, with NACHA constantly adopting new security regulations and technology to protect the businesses and consumers that rely on ACH transactions. At TowneBank, we offer an advanced solution called ACH Positive Pay that can take security to a new level, allowing you to define which ACH payments are legitimate. As a business owner, you can avoid the risks that come with check fraud and manual data entry errors. And with TowneBank Treasury Services, you can help your business thrive even more in a high-tech environment with the help of a local team that understands your business’s unique needs.
How to Set Up ACH Payments for Business with TowneBank
When you have the right banking partner for your business, setting up ACH payments for business doesn’t have to be complicated. Your TowneBank banker is there to help set your small business up for financial success.
1. Open a TowneBank Business Checking Account
TowneBank has tailored checking solutions for every business. Look into options like our Value Classic, a convenient small business checking account option, or our Value Classic Plus, which is ideal for businesses with higher volumes of transactions. We’ll help you find the right option for your business structure and pricing needs. Our Business Advantage account includes ACH transactions for your convenience.
2. Connect with Your Local Banker
Unlike online-only banks, which often require you to navigate time-consuming chatbots that are anything but user-friendly, TowneBank offers real-time and in-person support from local banking professionals who know your business and community.
3. Set Up Your Payment System
Streamline your business’s day-to-day processes with our ACH payment services. At TowneBank, we offer a wide range of ACH solutions customized to fit your needs, including same-day ACH payments and pre-authorized drafts. When you use ACH payments in conjunction with our other services, such as Remote Deposit Capture and Autobooks, you can send and receive payments in a variety of ways while tracking everything without manual intervention.
4. Get Customer ACH Authorization
Whether you receive payments from consumers or businesses, our ACH-compliant protocols ensure that both payees’ and payers’ banking information is secure and that you meet all Nacha’s requirements to send and receive small business ACH payments. We’ll also help ensure the use of correct routing numbers for these transactions, as ACH routing numbers are different from those used for checks.
Comparing ACH Payments to Other Payment Methods
| Payment Method | Cost | Speed | Best use |
| ACH | Low | 1-2 days in most cases; same-day option is available with TowneBank | Recurring payments to vendors, payroll, invoicing, bill payment |
| Wire | High | Same Day | Large single transfers |
| Credit and Debit | Medium-High | Instant | Customer payments |
| Checks | High | Slow | Certain small vendors and older systems |
The Real Savings of ACH Payments for Business—and the Real Cost of Other Payment Processing Options
The true cost of payment methods for small businesses isn’t just the fee they have to pay every time, although these transaction fees add up very quickly for small businesses. The real cost comes from the hours spent reconciling business bank accounts, looking for lost invoices, or manually handling payments. When you choose small business ACH payments, you have the freedom to streamline everything from accounts payable to direct deposit payroll—all while saving money on credit card processing fees.
With your TowneBank business banker, you can delve into your business expenses and see how much small business ACH payments could help you save. If you process 200 payments per month, the cost of processing those payments by check could be anywhere from $400 to $800 monthly. If you process those same payments at $0.50 each via ACH, you could instantly save $300 to $700 per month. The fees associated with ACH payments depend on a variety of factors, and your dedicated business banker will help you estimate your potential cost savings if you switch to ACH for routine payments.
What Does the Future of ACH Payments for Business Look Like in 2026?
ACH payments continue to evolve with each passing year, becoming increasingly secure and providing fast, reliable service to more and more businesses. ACH payments increased 4.2% in the first quarter of 2025, and same-day ACH is picking up speed. At TowneBank, we offer same-day ACH payments for our valued business members. More and more companies are choosing business ACH payments for the speed, convenience, and security this option offers, without the steep fees associated with wire transfers.
NACHA Operating Rules will continue to shape and define how ACH debit transactions work. Upcoming changes include faster response requirements for Requests for Returns, ACH Credit Monitoring, and new types of fraud monitoring.
At TowneBank, we keep up with changes in ACH use, trends, and compliance so we can offer the cutting-edge services and support our members deserve. We don’t just set you up with ACH payment processing; we help you figure out how best to use this payment processor to save time and money.
Why Choose TowneBank for Small Business ACH Payments?
Small business ACH payments are a powerful tool that can revolutionize how your business makes and receives payments, but its usefulness goes beyond ACH technology. The real power of ACH lies in who guides you through it and shows you how to use it to your full advantage.
At TowneBank, what sets us apart and we're proud to offer:
- Personalized Service
Exquisite service that is tailored to your business, industry, and goals. - Local Decision-making and Knowledge
Your local banker knows your name, cares about your business, and wants to help you grow and succeed. - A Variety of Business Banking Tools
We customize your toolkit to fit your needs as your business grows. - A Partnership with a Bank
We see what you bring to our community and we're excited to be a part of it. - A Dedicated Local Banker
You'll have a banker who is constantly working for you and your business's financial well-being.
When you choose TowneBank for your business banking needs, you aren’t just an account number or a line on a spreadsheet. You’re part of the community that we serve together. Your success and partnership with TowneBank supports schools, nonprofits, and other small businesses throughout Virginia and North Carolina.
Frequently Asked Questions
-
Small business ACH payments are an excellent complement to other payment methods we support. They offer flexibility and efficiency for many types of payments, but we recognize that your business has a wide range of financial needs. You may choose to use the ACH network for ACH payments to vendors, credit card payments for purchases where you want to earn points or utilize extended payment timelines, debit card payments to minimize transaction fees on certain purchases, and check payments for legacy vendors. Our suite of tools, such as Remote Deposit Capture for checks and Autobooks for comprehensive record-keeping, save you time and keep your business on track. No matter what your business’s outgoing and incoming payment needs are, we have comprehensive solutions that fit the bill.
-
A standard ACH transaction generally posts within one to two business days. Understanding how ACH payments work clarifies this timeline. After the payment is made by the Originating Depository Financial Institution (or ODFI), the Receiving Depository Financial Institution (or RDFI) processes the payment. As a TowneBank client, you can take advantage of same-day ACH transactions when certain qualifications are met. -
ACH payments are usually less than $1 each, often $0.50 or less. When you compare that to $2 to $4 to process a check, the savings are obvious. Additionally, many business owners find that the time saved with small business ACH payments is invaluable. -
ACH payments are processed in batches, while wire transfers are processed as single transactions. As a result, small business ACH payments are more affordable but the processing times are typically one to two business days. Wire transfers are often faster but come with higher fees.
Let's Make Payments Easier Together
Modernizing your payments doesn’t mean sacrificing service, security, or peace of mind. Working with TowneBank gives you access to the full scope of payment options, customized to your business’s needs, payment schedules, and goals.
To learn more about our business banking solutions and how we can help you integrate ACH payments for business into your financial systems, visit your local TowneBank office. You’ll meet with one of our experienced, friendly bankers and find out how we can assist you as you build your business.
Let's Connect
Please complete the short form below to have a banker contact you at a time that is most convenient for your schedule.