The Benefits of ACH Payments for ISVs

The Benefits of ACH Payments for ISVs

With the advent of new technology and the rise of digital businesses, customers are beginning to expect faster payments. As an Independent Software Vendor (ISV) that integrates payments, you want to ensure that you can provide businesses with the tools to accept payments conveniently — without sacrificing speed and security. And in recent years, ACH payment processing has grown in popularity for demonstrating this ability to offer incredible convenience. In this blog post, we will discuss the benefits of ACH and how it can help ISVs grow their business by delivering steady cash flow, increased security, fewer disputes, and more. 

What is ACH?

Let’s start off by explaining what exactly ACH is. The Automated Clearing House (ACH) is the U.S.’ electronic system for financial transactions. It is governed by the National Automated Clearing House Association, known as NACHA. ACH moves money from the payer’s account to the recipient’s account in one seamless action. 


The ACH network is the primary mode of payment for many business transactions. The payments are conducted electronically, leading to increased efficiency and faster disbursals. According to NACHA, there were 426.3 million payments made by ACH in 2021, up 17.9% from 2020, and those payments were valued at $2 trillion. There is no doubt that the ACH network will continue to flourish as businesses and consumers opt for this payment method.

An Integrated Approach

As ISVs incorporate payment processing software within other business software, it’s important that they consider the rapid shift toward digital payment methods like ACH. ACH is a leading form of payment for businesses today, with 78% of organizations leveraging ACH for both credit and debit transactions. Today’s ISVs have the opportunity to leverage this technology and scale their business. By adding support for ACH processing to an existing software product, ISVs can broaden the appeal of their product to a much larger audience of merchants, and ultimately, increase their revenue stream.

The Benefits of ACH Payments

ACH processing offers merchants a number of benefits, which means that ISVs who support this payment method will be sure to grow their customers’ satisfaction and their revenue. Let’s explore some advantages of ACH payment processing for your clients:

  • Enhanced Security

ACH transactions are faster, safer, and more secure than paper checks. Instead of depositing paper checks into a bank, ACH transfers money directly from one account to another. This means other people cannot intercept the information sent between financial institutions, minimizing the risk of fraud or identity theft.

  • Quicker Cash Flow

The speed of processing checks and the convenience of electronic billing make ACH an obvious choice in payment processing. One of the most important benefits is that ACH payments are often available within 24 hours. Clients will have immediate access to funds, which can be more useful than waiting for checks to clear. This helps businesses keep up with their daily payments and manage cash flow—allowing them to focus on running their operations.

  • Automating Payments

One great benefit of ACH transactions is that they make it simpler for your customers to set up automatic processing for recurring purchases. Merchants who offer a  subscription model or accept other forms of repeat payments will be able to process ongoing payments without having to collect payment details each time — which benefits customers, as well. The process runs on an automatic cycle until the customer chooses to cancel, making these transactions effortless and efficient for both parties.

  • Fewer Disputes

ACH payments are typically subject to fewer chargebacks than credit and debit card transactions due to more regulations, less opportunity for fraud, and fewer instances in which customers can initiate a chargeback. A chargeback is a payment that is returned to a consumer’s credit or debit card in response to their filing of a dispute. Chargebacks are initiated for a number of reasons, such as when a product arrived damaged or the transaction was fraudulent. Chargebacks can result in lost revenue for merchants, so it is important to prevent them as much as possible.

  • Fewer Overhead Costs

Accepting ACH payments can be a great way to reduce overhead costs associated with payment processing. ACH transactions do not incur interchange fees like debit or credit card transactions, making them considerably less expensive for businesses to accept. With fewer costs, ACH transactions can save merchants up to 3-5% in processing fees in comparison to credit cards.

Integrate ACH Payment Processing Today

ACH payments play an important role in the payment ecosystem, as they unlock a significant amount of transaction volume. As ACH volumes increase and real-time payment technology rapidly advances, it will make all the difference for ISVs to integrate with payment processing technology that supports ACH transactions. Consumers demand a seamless and frictionless payment experience across all channels, and adding support for ACH helps cater to this preference.

As a leading payment gateway, Cardknox is committed to helping your business grow, innovate, and adapt to the changing payment preferences of your customers. We support many of today’s leading payment methods — including ACH and credit cards — so that ISVs can bring customers the best experience while also benefiting from our generous revenue-sharing program. Contact us today to learn more about how we can get you up and running with ACH processing along with our premium payment features tailored for ISVs.