Consulting Services

The Difference Between ACH and EFT

For those businesses who have started to look into the options for accepting digital payments from customers to save on overall expenses, they get to a point and want to know the difference between ACH and EFT payments.

There are a few key differences, besides the basic definition, but mostly, it is in the cost and in the time to transact the payment. Learn here what these differences are and what might work better for your business and your customers.

ACH vs. EFT Payment

Both ACH and EFT payments fall into the digital payment category of processing. The former lies within the broader group of the second, overarching category.

What Does ACH Payment Mean?

ACH is an acronym that stands for “Automated Clearing House”.

What Does EFT Payment Mean?

EFT is an acronym that stands for “Electronic Funds Transfer”.

Does the Difference Between ACH and EFT Matter?


In the day to day management of a business and choosing what is right for your payment processing options with customers, it is the ACH payment that will take longer. ACH payment transactions also incur larger fees and sometimes it is a percentage-based fee on top of a base cost.

Most business owners will choose the EFT option over ACH and never need to make it a customer’s choice.  They are providing choices to their customers, offering a different method of payment other than cash, check or credit card. In this case, the business is creating an option that can eliminate unnecessary fees, without delaying the time to accept payment.

At the end of the day, there are times when ACH is the better option, but how to choose is the real dilemma.

All of the nuances of your options are why the TransAct Merchant Services team works one on one with our clients to make the right choices. Whether it is to satisfy the functional and security needs for the business, or to address the costs and timing of payments being received reach out to us to learn more.

You can also e-mail your questions, or set up a time to discuss options that are right for you, your business and your customers.