An ACH payment is an electronic transfer between US bank accounts over the ACH Network, which reaches every US bank and credit union account. Nacha writes the network's rules. A credit pushes money into an account, like direct deposit. A debit pulls money out with the account holder's authorization, like a bill paid each month. Payments can settle the same business day or one to two business days later. On Stripe, an ACH Direct Debit costs 0.8%, capped at $5, and takes up to four business days to confirm.
What is an ACH payment?
ACH stands for Automated Clearing House. The ACH Network is a payment system that reaches all US bank and credit union accounts. Nacha says the same payments go by other names too: direct debit, EFT, electronic bank transfer and eCheck. Payroll direct deposit and a utility bill paid from a checking account both run on it.
Who runs the ACH Network?
Nacha writes the operating rules every bank on the network follows. Two ACH Operators move the files between banks: the Federal Reserve and The Clearing House. Settlement runs through the Federal Reserve's settlement service.
Each payment has four parties:
- Originator: the business that starts the payment.
- ODFI: the originator's bank, which sends the payment file.
- RDFI: the receiver's bank or credit union.
- Receiver: the person or business whose account is credited or debited.
What's the difference between an ACH debit and an ACH credit?
The direction the money moves.
| Type | Who starts it | Example |
|---|---|---|
| ACH credit | The payer pushes money out | An employer paying wages by direct deposit |
| ACH debit | The payee pulls money in, with authorization | A utility collecting a monthly bill |
Nacha says debits are just over half of ACH payments and credits just under half. An ACH debit always needs the account holder's authorization. See ACH debit for what that authorization has to cover.
How long does an ACH payment take?
Nacha says ACH payments can be processed the same business day, or scheduled one or two business days away. By Nacha's rule, a debit can't have a settlement date more than one banking day in the future. Nacha estimates 80% of ACH payments settle in one banking day or less.
The network is open 23¼ hours every business day and settles four times a day. It doesn't settle on weekends or federal holidays, or between 6:30 p.m. and 7:30 a.m. ET on business days.
A processor can take longer to tell you the payment worked. On Stripe, an ACH Direct Debit takes up to four business days to settle to your Stripe balance on standard settlement, or two on faster settlement for eligible US accounts.
What does an ACH payment cost?
Each processor sets its own price. Stripe's standard US price for ACH Direct Debit is 0.8% per payment, capped at $5. A domestic card payment on Stripe costs 2.9% plus 30¢. On a $1,000 payment that is $5 by ACH against $29.30 by card. The Stripe fees on payment plans entry works through a full plan.
When does ACH suit a payment plan?
ACH suits large or recurring payments where a few days' wait for confirmation is fine. Stripe describes ACH Direct Debit as popular for businesses with large or recurring transactions. Two things to plan for:
- It isn't instant. Count a payment as pending until it confirms.
- It can come back. A debit can be returned for insufficient funds or a closed account, or disputed by the customer. See ACH returns on payment plans.
Every figure on this page was checked against these sources on Oct 6, 2026. General information, not legal or tax advice.