For most business-to-business invoices, ACH often costs less to accept than a card, and a business-format ACH debit gives the payer far less time to reverse it, while cards are quick to use for buyers who prefer them. A common approach is to offer both and steer each customer toward the method that fits the invoice size and relationship. The differences that matter most are cost, settlement timing, and how each method handles reversals.

Key takeaways

  • ACH moves money between bank accounts under rules set by Nacha; an eCheck is an ACH debit taken through a payment gateway.
  • Most ACH payments settle in one banking day or less, and Same Day ACH handles payments up to $1 million each (as of September 2026).
  • A business-format (CCD) debit to a business account has a much shorter return window for unauthorized claims than a consumer debit does.
  • Card payments carry a dispute process that typically takes months; ACH returns follow different, usually shorter, timeframes.
  • Card fees usually scale with the invoice amount, so the gap between card and ACH costs grows on large invoices.

What are ACH and eCheck payments?

ACH (Automated Clearing House) is the US network for batch bank-to-bank payments. Nacha governs the network and writes the Nacha Operating Rules, but it does not process payments itself. Two ACH Operators, the Federal Reserve and The Clearing House, sort and route the transactions.

There are two directions:

  • ACH credit: the payer pushes money to you, the way an employer sends direct deposit. Some B2B customers pay invoices this way from their own bank portal.
  • ACH debit: you pull money from the payer's account with their authorization, the way a utility collects a monthly bill.

The parties have formal names. The Originator starts the payment. Its bank is the ODFI (Originating Depository Financial Institution). The account holder on the other side is the Receiver, and their bank is the RDFI (Receiving Depository Financial Institution).

"eCheck" is a common name for an ACH debit taken through a payment gateway. Each carries a code for how it was authorized: Authorize.net's documentation, for example, describes CCD as a charge or refund against a business checking account and WEB as an internet-initiated charge.

How fast does each method settle?

Nacha estimates that 80% of ACH payments settle in one banking day or less, counting both standard and Same Day ACH. The NCUA Examiner's Guide notes that most ACH payments settle on the next business day.

Same Day ACH has a per-payment cap. According to Nacha, the limit is $1 million per payment and is scheduled to rise to $10 million on September 17, 2027 (as of September 2026). Larger invoices can still go by standard ACH.

Card payments are approved at the time of purchase, but the money reaches your bank account later, after clearing and settlement. That timeline is covered in card settlement and funding times.

How do ACH returns differ from card chargebacks?

An ACH return is the RDFI sending a payment back with a return reason code. R10, for example, means the account holder says the debit was not authorized.

Both the account type and the code the debit was sent under matter:

  • Consumer codes or consumer accounts: Nacha's rules use R10 and R11 for unauthorized returns from consumer Receivers, and also for debits sent with consumer codes to non-consumer accounts. That page gives R11 a 60-day return timeframe, and Increase's ACH documentation gives sixty calendar days for debits to consumer accounts. So a debit sent with a consumer code such as WEB can carry the 60-day window even when it goes to a business account. Federal Regulation E adds protections for consumers, and its definition of "account" covers accounts established primarily for personal, family or household purposes.
  • Business codes to business accounts: Nacha uses a separate code, R29, for unauthorized returns of debits sent with business codes such as CCD to non-consumer accounts. The same Increase page states that debits to commercial accounts can be returned within two business days.

Ask your provider which code your eCheck debits use, because that sets the return window.

A card chargeback works differently. The cardholder disputes the charge with their card issuer, the amount is pulled back from the merchant, and the merchant can respond with evidence. Stripe's documentation says networks typically allow 120 days to dispute and that the full process can take two to three months. Each step is covered in how chargebacks work.

For a seller invoicing other businesses, a CCD debit to a business account has a short return window, while a card payment stays open to dispute for months. Either way, keep a record of each customer's ACH authorization.

What does each method cost?

Fee schedules vary by provider, so this section describes structures rather than prices.

  • ACH and eCheck: pricing is often a flat fee per transaction; check your provider's schedule, including any fee for returned payments. With a flat fee, the cost is the same for a $500 invoice and a $50,000 one.
  • Cards: Visa's fees page says merchants pay a "merchant discount" to their financial institution, typically calculated as a percentage per transaction. Interchange, which Visa describes as a transfer fee between the merchant's bank and the card issuer's bank, is the largest share of that cost, according to a Congressional Research Service report (2021). The same report says interchange is typically a percentage of the transaction plus a fixed amount.

For B2B card data requirements, see Level 2 vs. Level 3 credit card processing.

Which method fits which invoice?

FactorACH creditACH debit or eCheckCard
Who starts the paymentThe buyerThe seller, with authorizationThe buyer or seller
Typical fee structureSet by your bank's account termsOften flat per transactionTypically percentage-based
SettlementOne banking day or less for most paymentsOne banking day or less for most paymentsAuthorized instantly, funded after settlement
Reversal risk from a business payerLow; the buyer sent itShort window for CCD debits; 60 days for consumer codesDisputes possible for months
Remittance detailDepends on what the buyer's bank sendsCaptured on your payment formLevel 2 and 3 invoice data, where supported

Example (illustrative numbers)

Suppose a supplier pays a 2.5% effective card rate and $1.00 per ACH debit. On a $40,000 invoice, a card costs $1,000 and ACH costs $1. On a $300 invoice, a card costs $7.50 and ACH costs $1. On the small invoice, accepting a card may be worth it if it gets the customer to pay on time.

A practical approach:

  • Large or recurring invoices: offer ACH first, with a debit authorization on file or remittance instructions for ACH credit.
  • Small or one-time invoices: accept cards for convenience, since the fee difference is small.
  • New customers: a card payment can be faster to collect than setting up bank details.
  • Reconciliation: whichever method you use, match payments to invoices automatically where possible; see payments and ERP integration.

Frequently asked questions

Is an eCheck the same as ACH?

In practice, yes. An eCheck is an ACH debit, usually started through a payment gateway, and it follows Nacha's rules and return timeframes.

Can a business customer reverse an ACH debit?

Yes, if the debit was unauthorized or has an error. For a debit sent with a business code such as CCD to a business account the window is short, but a debit sent with a consumer code such as WEB can carry the 60-day window. Confirm current timeframes with your bank.

Does every bank offer Same Day ACH?

No. The NCUA Examiner's Guide notes that offering same-day service to originators is optional for banks, though every receiving bank must accept same-day payments. Ask your bank or processor whether it offers it, at what cutoff times and for what fee.

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