The Benefits of Offering Online Card & ACH Bank Payments

Accepting online card and ACH (Automated Clearing House) bank payments is no longer a luxury. It’s an essential part of running a modern small business or freelance operation. With global mobile payment transaction values reaching $2.2 trillion and 70% of consumers preferring digital payments, businesses that don’t offer online card payment options risk losing customers and revenue. From faster payments to improved cash flow and higher customer satisfaction, these methods can transform the way you get paid.

In this guide, we’ll break down the benefits, potential downsides, and how to start accepting them securely and efficiently.

What are online card payments?

Online card payments are electronic transactions made with credit or debit cards over the internet. They allow customers to pay instantly, without cash or checks, through secure payment gateways that encrypt sensitive financial data. Popular payment processors like Stripe, PayPal, and Square enable businesses to accept payments from anywhere in the world.

These digital payment methods work by securely transmitting card information through payment gateways that connect to card networks like Visa, Mastercard, and American Express. The entire process happens in seconds, making it convenient for both businesses and customers. Modern online card systems also support digital wallets, virtual cards, and contactless payment options through smartphones and smartwatches.

Learn more about our online payments solution.

The benefits of accepting online card payments

Online card payments offer numerous advantages that can significantly impact your business’s bottom line and customer satisfaction:

• Faster payment processing: Credit and debit card transactions typically process within 1-3 business days, compared to 5-10 days for checks. This improved speed directly benefits your cash flow and reduces the time spent waiting for payments.

• Enhanced customer convenience: Customers can pay from their computer or smartphone 24/7, eliminating the need to write checks or make bank visits. This convenience often leads to faster invoice payments and higher customer satisfaction rates.

• Increased sales potential: Businesses offering diverse payment options see improved conversion rates by removing payment friction. According to Wave Apps, accepting online payments can result in faster payment collection compared to traditional methods.

• Global reach capability: Online card payments enable you to accept payments from international clients without the complications of foreign checks or wire transfers. This expands your potential customer base significantly.

• Better record keeping: Electronic payments create automatic digital records that integrate with your accounting software, reducing manual data entry and improving financial tracking accuracy.

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The benefits of ACH bank payments

ACH (Automated Clearing House) transfers move money directly between bank accounts without relying on card networks. They’ve become one of the most cost-effective and dependable ways for businesses to get paid.

• Lower fees: ACH transactions usually cost less than $1, compared to the 2–3% fees attached to credit card processing. For high-value invoices or frequent billing, those savings add up quickly.
• Security and traceability: ACH transfers are bank-to-bank, leaving clear audit trails and reducing exposure to fraud compared with checks or manual payments. According to QuickBooks, the predictable timing of ACH transfers also helps businesses manage cash flow more effectively.
• Reliable for recurring payments: Subscriptions, retainers, and installment billing fit naturally with ACH because bank accounts don’t expire or hit credit limits the way cards do. This means fewer payment disruptions and better continuity for your revenue.
• Flexibility with faster options: ACH isn’t just for “slow” transfers anymore. According to Nacha, Same Day ACH volume grew 45% in 2024, topping 1.2 billion payments worth $3.2 trillion, showing just how much ACH is also evolving to meet demand for quicker processing.
• Higher success rates: Because payments come directly from bank accounts, ACH has fewer failures than cards, which can be declined due to expiration dates, insufficient credit, or account limits.

Online Card vs. ACH Bank Payments

Understanding when to use each payment method helps optimize your payment strategy:

Potential downsides of online payments

While online payments offer significant benefits, it’s important to understand the potential challenges:

• Transaction fees impact: Credit card processing fees can range from 2-3% per transaction, which can significantly impact profit margins on low-margin products or services.

• Fraud and security risks: Digital payments create potential vulnerabilities for data breaches and fraudulent transactions. However, modern payment processors use advanced encryption and fraud detection tools to minimize these risks.

• Technical setup requirements: Implementing online payment systems requires initial setup time and potentially ongoing technical maintenance. Some businesses may need professional assistance to integrate payments with existing systems.

• Chargeback challenges: Credit card payments can result in chargebacks where customers dispute transactions, potentially leading to lost revenue and additional fees.

The difference between online payment types

Understanding various online payment methods helps you choose the right mix for your business:

• Traditional card payments: Credit and debit cards processed through secure gateways, offering broad customer acceptance and familiar checkout experiences.

• ACH bank transfers: Direct bank-to-bank payments that bypass card networks, offering lower fees and higher security for domestic transactions.

• Digital wallets: PayPal, Apple Pay, Google Pay, and other digital wallets that store payment information securely and enable one-click payments. These systems can keep customer payment details on file for faster future transactions, making them ideal for businesses that handle recurring services like utility bills or subscription payments.

• Virtual credit cards: Temporary card numbers generated for specific transactions or vendors, providing an extra layer of security for online purchases while maintaining the convenience of traditional credit card processing.

• Buy Now, Pay Later (BNPL): Services like Klarna and Afterpay that allow customers to split purchases into installments, potentially increasing average order values.

Tip: When planning your payment strategy, you can learn how to create financial projections to forecast the impact of faster payment processing on your cash flow.

How invoices and online payments can work together

Integrating online payment options directly into your invoices creates a seamless payment experience that benefits both you and your customers. This integration can significantly reduce payment delays compared to traditional methods like checks or cash.

Modern invoicing platforms allow you to embed payment buttons directly in email invoices, enabling customers to pay with a single click. This reduces the friction between receiving an invoice and making payment, significantly improving your collection rates.

You can also offer multiple payment options within a single invoice, letting customers choose between credit cards, ACH transfers, or digital wallets based on their preference. This flexibility often leads to faster payments and improved customer satisfaction.

Tip: Start with automated invoicing to streamline your payment process and reduce collection delays.

Top five ways electronic payment can benefit your business

1. Reach more customers

Accepting multiple online card payment options meets diverse customer preferences and expands your potential market. According to McKinsey research, 60% of US consumers use digital payments for in-app purchases, while in-store digital wallet adoption has grown to 28% in 2024.

Digital Payment Adoption in the US (2024)

The following data from McKinsey shows how consumers are embracing different digital payment channels:

*Based on global data showing digital wallets account for 53% of online purchases

This data demonstrates that businesses offering diverse online card payment options can tap into these growing consumer preferences and avoid losing customers to competitors who provide more payment flexibility.

2. Sell more

Reducing payment friction directly impacts conversion rates. Studies show that businesses accepting diverse payment options, including virtual credit cards and digital wallets, see higher average order values and repeat purchase rates.

3. Meet consumer demand for consistent experience across sales channels

Modern consumers expect seamless payment experiences whether shopping online, in-store, or through mobile apps. Offering consistent online card payment options across all channels creates a professional, cohesive brand experience.

4. Enhance security

Modern payment processors use encryption, tokenization, and advanced fraud detection algorithms to protect both businesses and customers. These security measures often exceed what small businesses could implement independently.

5. Increase productivity

Automated payment processing reduces manual reconciliation work, frees up time for core business activities, and minimizes errors associated with manual data entry. Many businesses report saving 5-10 hours per week after implementing automated payment systems.

How to accept credit card payments online

Merchant account plus payment gateway

This traditional approach gives you maximum control over the payment process but requires more initial setup. You’ll need separate relationships with a merchant account provider and a payment gateway, which can offer better rates for high-volume businesses.

All-in-one solutions

Platforms like Stripe, Square, and PayPal combine merchant accounts and payment gateways in single packages. These solutions are typically easier to set up and manage, making them ideal for small businesses and startups.

Simplified credit card processing

Many modern invoicing platforms now include built-in payment processing capabilities. These integrated solutions offer the simplest setup process and seamless integration with your existing workflow.

Challenges of online payment processing

Shopping cart abandonment

Online payment friction can lead to abandoned purchases. Combat this by streamlining your checkout process, offering guest checkout options, and providing multiple payment methods including popular digital wallets.

Fraud prevention

While fraud risks exist, modern payment processors provide sophisticated detection tools. Implement multi-factor authentication, address verification, and CVV checking to minimize fraudulent transactions.

Chargebacks

Credit card chargebacks can be costly and time-consuming. Prevent them by maintaining clear transaction records, providing excellent customer service, and having transparent refund policies. For detailed guidance, see our guide on how to avoid chargebacks.

Final Thoughts about Online Card & ACH Bank Payments

Offering online card and ACH bank payments isn’t just about convenience—it’s about keeping up with customer expectations and improving your business’s financial health. With proper implementation and the right payment partners, these systems can significantly improve your cash flow, reduce administrative burden, and help grow your customer base.

The statistics are clear: businesses that embrace diverse online payment options get paid faster, serve customers better, and position themselves for growth in an increasingly digital economy. 

Need an invoicing solution for your small business? Try Invoice Fly’s Invoicing Software — It’s free!