Consulting Services

Is There a Difference Between ACH and EFT

Is there a difference between ACH and EFT?” that is a great question.

There are a few key differences, mostly in the cost and in the time to process a payment via an EFT or an ACH. These differences may lead you to choose one as being better for your business or customers.

If you are considering payment options and accepting digital payments from customers, these may be available and help to save on overall expenses.

What is an ACH?

“Automated Clearing House” is the literal translation for the acronym ACH.

What is an EFT?

“Electronic Funds Transfer” is what the acronym EFT represents.

ACH vs. EFT Payment

Digital payments include the option of processing either via an ACH or EFT but the Automated Clearing House falls into the broader group of the Electronic Funds Transfer category of payment models.

Why does it matter which we choose: ACH or EFT?

Choosing what is right for your payment processing options with customers can depend on timing.

ACH payments typically take longer and incur higher fees. Sometimes an ACH has a percentage-based fee on top of the base cost.

Most business owners will just process a payment via the EFT option.  This offers a different payment method versus check, credit card or cash. This can both eliminate time and reduce processing fees.

It is a good idea to consult with your financial processing team to choose the right one. There are times when ACH is a better option, but it is nuanced.

The TransAct Merchant Services team works one on one with clients to help make these choices.

Evaluating both functional and security needs for a business, discovering more about costs and timing of payments being received is simple – just reach out to us to learn more.

You may choose to e-mail questions, or set up a good time to discuss your business and specific circumstances.