5 Latest Developments in ACH Payment Gateway Tech

Businesses and individuals across the country rely on ACH payment gateway providers for their financial transactions. Faster processing and support via complementary tech have fueled the growth of ACH adoption in the last few years. Official Nacha stats show that the ACH network handled 29.1 billion transactions worth over $72.6 trillion in 2021 alone!

This blog discusses the latest developments the ACH payment gateway providers have adopted, responsible for massive growth.


Latest Developments in ACH Payment Gateway Technology

Faster Transfers

The ACH technology was not the first choice of individuals due to its lengthier processing speeds. ACH solutions processed notoriously slower than immediate credit card payments. Previously, ACH transactions took 4-5 days to clear. Till the bank cleared them, these ACH funds sat in the hold category of the receiver’s account, completely inaccessible. However, with the recent developments, Nacha now helps financial institutions accept ACH payments on the same day.

Though they are not as instantaneous as credit cards or debit cards, they function well for most business owners because the tools available bring more cost efficiency to the table, increasing profits on each transaction.  

Complimentary Tech

The most advanced payment gateways build native solutions over the ACH network to complement existing merchant services. The following ACH payment solutions make the lives of merchants easier.  

  • SMS Payments: Merchants automatically send payment reminders to their customers via a simple SMS text message. Moreover, they also generate a payment link that helps customers log in to a hosted payment portal to pay their dues.
  • Mobile Payments: With mobile payment technologies, customers now pay their bills on the go from any internet-enabled mobile device.  
  • Email Invoicing: Email invoicing allows the merchants to automatically generate and distribute invoices at scale with a single click. The merchants then send the invoice and a payment link to all their customers. 
  • IVR Payments: IVR payments help merchants collect payments over the phone. The customers leverage credit card processing by sharing their credit card details safely with an IVR system on the phone. PCI-compliant payment processors help eliminate the high risk associated with such transfers by ensuring that no sensitive customer information gets stored on the merchant’s network.

Recurring Payments

Merchants mainly use the ACH credit facilities for payroll management. They automate their payroll processes by setting it up once using the correct payment processor. Recurring billing cycles allow merchants to automatically credit the payroll to their employees’ bank accounts weekly or monthly. The business owners also set up recurring payments to pay their vendors directly from merchant accounts at minimal processing fees. Recurring transactions via ACH payment processing cost significantly cheaper than credit card or wire transfers.

Increased Security

Consistent technological advancements have helped Nacha make ACH transfers as safe as credit card payments. One must collect authorization over the phone, internet, or a signed paper document before carrying out an ACH transaction. The authorization document contains routing numbers, payment method information, and account number details for both the sender and receiver of funds.

Nacha recommends that both the sender and receiver of funds keep a copy of this authorization form handy even after completing the transaction. The network allows one to manage and track ACH transactions digitally. The authorization form comes in handy to settle financial disputes later. 

Seamless Tech Sync

Advanced payment processors have technologies that automate various aspects of the ACH transfer cycle. They automate both payments and the back-end accounting processes using technologies like virtual terminals and developer plugins. 

  • Virtual Terminals: Few payment gateways offer virtual terminals that let the merchants access their transaction history on the internet. Merchants also use these terminals to quickly manage and carry out transactions using any internet-enabled mobile device.  
  • Developer Plugins: Advanced plugins help merchants connect their payment gateways directly to back-office accounting solutions like QuickBooks. QuickBooks automatically records transactions with the correct merchant/vendor with a two-way sync. The top payment gateways have custom developer plugins for merchants to start accounting on the back-office software without extra coding.

Besides, merchants actively adopt ACH as the alternative payment method to credit cards to attract more customers with the cash discount program. With this program, customers who choose to pay dues via online ACH receive an additional cash discount that lowers the overall cost of service/product. Ideally, merchants should simultaneously accept paper checks, online ACH, and credit cards. Adopting multiple payment methods helps merchants give their customers the flexibility to choose any payment method.


The best payment gateways help merchants process ACH and credit cards on a single platform. They also offer check verification services that enable merchants to accept and verify checks instantly to prevent check returned fees. Learn more about the latest developments in the world of payment processing by getting in touch with our finance experts!


Date originally published: April 24, 2022

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