Best ACH Payment Gateways For Businesses: Top Providers & Features
Best ACH Payment Gateways For Businesses: 1. Stripe 2 Bill.com 3. PaySimple 4. GoCardless 5. Authorize.net ACH 6. Dwolla. Learn about their key features now!
Late payments are a major challenge for businesses. Small businesses in the US were paid an average of nine days late in the first half of 2024.¹
Receiving payments late can affect your business’ cash flow. This in turn can disrupt day-to-day operations, and limit the potential for growth. Accepting recurring payments is one way to tackle this problem. This ensures your business receives a steady income stream on time.
In this article, we’ll look at what you need to know about setting up and managing recurring payments. We’ll also see how accepting frequent local and international payments with a Wise Business account can save you time and money.
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Recurring, or automatic, payments are repeat payments that are processed on a set schedule. They’re ideal for collecting fees for subscriptions, memberships, and other services. To accept recurring payments, you may need to use a full-service payment processor. This is to keep track of billing customers and to handle the payments.
Once you have selected a payment processor, you can set your pricing and payment terms. Your pricing may vary depending on the installment options you offer, such as monthly or annual billing. You may also adjust pricing based on whether you offer free trials or other discounts.
You can set pricing based on usage as fixed or variable recurring payments. Additionally, you can charge a specified fee at a regular interval or a variable, pay-as-you-go amount. Tiered pricing allows customers to choose packages of features for different fees, and upgrade or downgrade as needed.
Establishing a clear schedule is key to an effective recurring payment system. You should clearly define their frequency. This could be e.g. daily, weekly, monthly, or annually, depending on your business needs, as well as your customers’ preferences.
You’ll need to outline your payment terms, including interest or fees for late payments. Additionally, set up options for partial payments. Decide on the reminders you’ll send to customers and whether subscription payments will renew automatically.
Display the payment terms on your business website clearly. This way customers understand what they’re signing up for, reducing the chance of costly chargebacks.
There are various ways you can accept recurring payments. This includes ACH transfer, credit or debit card authorization, invoices, and digital wallets.
Whichever payment method you accept through your payment processor, you’ll need to connect the processor’s payment system to your store.
This could be through a payment gateway for online payments, a virtual terminal, or invoicing software. It could also involve built-in integrations or application programming interfaces (APIs).
Customers will choose their recurring payment option and enter the details of their preferred payment method. The processor will then store this information securely. They’ll need to agree to their details being stored and the repeat payments taken from their account. This saves them from manually re-entering their details each payment cycle.
The payment processor, merchant acquirer bank, card network, and the customer’s issuing bank will review the transactions. They will approve them based on the agreed billing schedule. The payment processor will then transfer the funds to your merchant account.
Choosing the right payment processor and payment tools for your business is vital for your recurring billing to run smoothly.
Do your research and compare recurring billing solutions from various service providers. Find a platform that integrates with your sales setup. Make sure it works with your accounting software and customer relationship management (CRM) system.
Choose a processor that offers tools to manage recurring payments. Look for features like customizable invoices and automated reminders. It should support multiple payment methods. It should also integrate seamlessly with your online storefront or subscription platform.
Some service providers can help you set up a merchant account to receive the funds once the payments are processed. This can save you time on finding a separate merchant account provider.
You should also consider the customer service and resources the processor offers, so that you can get support when you need it.
Following best practices helps avoid issues with receiving and managing recurring payments.
Make sure your terms and conditions for recurring payments are written in straightforward language. The fees involved, such as for credit card processing or late payment, should be stated clearly on your website.
You should also inform customers of upcoming fee changes well in advance. Use multiple channels including email and billing statements to notify them. You can also use your storefront and social media profiles to communicate the changes. This fosters trust and can help to reduce chargebacks and other customer disputes.
Offer customers the choice to pay with as many different methods as possible. This could include bank transfers, debit and credit cards, digital wallets such as Apple Pay or Google Pay, or local payment options.
Allow customers to choose the billing frequency and their preferred date. This helps to ensure they have sufficient funds available to make the payment. Offering discounts for annual payments attracts cost-conscious customers and boosts your cash flow. Customers should also be able to update their payment details or make changes to their subscriptions easily.
Recurring billing requires storing consumers’ sensitive personal information. It is important to make security a top priority to protect customer data. Processing, storing, or transmitting customer data means you must comply with the Payment Card Industry Data Security Standard (PCI DSS). This is regardless of the size of your business.²
Rather than obtaining PCI DSS certification, you can comply by choosing a payment gateway with robust security. This will encrypt transaction data. Compliant payment gateways tokenize and store credit and debit card details on their own servers on behalf of your business. The data can then be retrieved on your website using a token without exposing it to potential interception by hackers.
Look for a payment provider that meets the requirements for PCI Level 1, as this is the highest level.
Communicating with your customers regularly is key to maintaining loyalty. Send automated reminders before their payments are due. Include also notifications to confirm successful payments. You should also notify customers in advance of any changes in their payment method authorization.
Engage with customers to gain feedback on their payment experience. This will help you discover ways to improve your service and address potential issues.
Using subscription management software to automate billing will save time in managing payments. It will also eliminate the need for following up on invoices manually. It also reduces the risk of manual error.
You can set up automated notifications and reminders for upcoming billing dates. You can also set them for payment confirmations and renewals. Sending customers automated reminders when payments are due can help them to make sure they have enough funds available. This can reduce the likelihood of missed or failed payments.
You also need to have processes in place to notify customers if their payments fail. This will give them time to update their payment information, and retry transactions. Dunning management is an automated billing process that re-attempts to collect a payment if it fails the first time. The customer is notified the payment has failed and will be retried in the coming days. You can set the number and interval of retries in the dunning system.³
Have clear policies for customers to cancel their subscriptions and claim refunds. This will help to manage expectations and protect your business.
Your terms and conditions for cancellations should be stated clearly. This should include any notice periods and fees. Explain the situations in which customers can request refunds and the process for submitting a request. This can help to reduce customer disputes.
Analyze your payments data such as failure and churn rates to identify trends that can help you improve performance. Adjusting your billing cycles or prices based on this data can help you to improve customer satisfaction. This can also increase retention.
Help customers understand the benefits of recurring payments, including cost savings and convenience. You should also highlight any special features you offer subscribers. This will encourage them to choose this payment option.
Create newsletters, blog posts, or videos to explain the benefits and enhance customer engagement.
There are several benefits to using recurring payments for your business as well as your customers.
Several types of businesses benefit from recurring payments. Typically these charge subscriptions or memberships for ongoing services:
Adopting automated payments can be especially beneficial for small businesses. It provides financial predictability, reduces administrative tasks, and enhances the customer experience.
By implementing best practices in recurring payments, you can reduce late payments and improve cash flow. This allows you to focus on the growth of your business. A Wise Business account can help you receive payments in multiple currencies and save money on currency conversion fees.
Wise is not a bank, but a Money Services Business (MSB) provider and a smart alternative to banks. Wise Business doesn’t charge monthly account fees and converts currencies at the mid-market exchange rate. You can use local account details to get paid in over 8 major foreign currencies from payment processors or customers directly. It allows you to easily manage the funds all in one place.
Some key features of Wise Business include: |
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![]() | Nicole is a professional journalist with two decades of experience in writing and editing, she has also run her own freelance business for the past five years. Her expertise spans the financial and technology industries, including payment processing and small business banking. |
Editor & Business Expert: | |
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![]() | Panna is an expert in US business finance, covering topics from invoicing to international expansion. She creates guides and reviews to help businesses save time and make informed decisions. You can read more useful business articles on her author profile. |
Sources:
¹Xero data shows declining small business performance amidst economic uncertainty
² Merchant Resources
³ What is Dunning Management? | Definition, Importance & Working | Zoho Billing
All sources checked February 2025.
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
Best ACH Payment Gateways For Businesses: 1. Stripe 2 Bill.com 3. PaySimple 4. GoCardless 5. Authorize.net ACH 6. Dwolla. Learn about their key features now!
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