ACH Transfers: How to Receive USD Payments as a Non-US Business

ACH stands for Automated Clearing House - a US-based electronic payment network that processes batches of transactions between banks. Unlike wire transfers that move money individually and immediately, ACH transfers group payments together and process them in scheduled batches throughout the day. This batch processing system handles everything from direct deposits and bill payments to business-to-business transactions, making it the backbone of US domestic payments.

The ACH network is governed by Nacha (National Automated Clearing House Association), which sets the rules and standards for all ACH transactions. In 2024, the network processed 33.6 billion payments worth $86.2 trillion, showing just how integral ACH has become to the US financial system. For international business owners, understanding ACH is crucial because many US clients prefer this payment method over more expensive alternatives like wire transfers.

Understanding the ACH transfer process helps explain why payments take 1-3 business days and why the system is so cost-effective. The process involves multiple parties: the originator (sender), the Originating Depository Financial Institution (ODFI), the ACH Operator, the Receiving Depository Financial Institution (RDFI), and the receiver.

The batch processing nature of ACH means transactions don't move individually. Instead, banks collect ACH requests throughout the day and submit them in batches to ACH operators (either the Federal Reserve or The Clearing House). These operators sort and route the transactions to the appropriate receiving banks, which then credit or debit the final accounts.

The choice between ACH and wire transfers often comes down to speed versus cost. While both methods move money between bank accounts, they operate on fundamentally different systems with distinct advantages and limitations. Understanding these differences helps business owners choose the right payment method for each situation.

Wire transfers move money immediately through networks like Fedwire or SWIFT, making them ideal for urgent, high-value transactions. ACH transfers prioritize cost-effectiveness over speed, making them perfect for recurring payments, payroll, and routine business transactions where immediate settlement isn't critical.

ACH transfers come in two main types: ACH credits (push payments) and ACH debits (pull payments). ACH credits occur when the sender initiates the transfer, such as direct deposit payroll or vendor payments. ACH debits happen when the receiver initiates the transfer, like automatic bill payments or subscription charges. Each type has different processing times and fee structures.

Standard vs Same-Day ACH Processing

Standard ACH transfers process in 1-3 business days and cost $0-1.50 per transaction. Same-Day ACH, introduced by Nacha in 2016, processes within the same business day for an additional fee of $1-5 per transaction. Same-Day ACH has transaction limits of $1 million per transfer and requires submission before specific cut-off times (typically 10:30 AM, 2:45 PM, and 4:00 PM ET).

• Standard ACH Credit: 1-3 business days, $0-1.50 fee, unlimited amount (subject to bank limits)
• Same-Day ACH Credit: Same business day, $1-5 fee, $1M transaction limit
• Standard ACH Debit: 1-3 business days, $0-1.50 fee, includes return protection
• Same-Day ACH Debit: Same business day, $1-5 fee, limited return window

All amounts in USD. Prices may vary.

Receiving ACH Transfers

• Standard ACH Credit (incoming): USD0 - USD1.5
• Same-Day ACH Credit (incoming): USD1 - USD5 (optional)

US Account Setup (for international businesses)

• Fintech account opening: USD0 - USD50 (one-time)
• Monthly account maintenance: USD0 - USD25 /month (optional)

💰 First Year Total: USD0 - USD350

📅 Annual Ongoing: USD0 - USD300

⚠️ Watch for currency conversion fees if your fintech automatically converts USD to your local currency

Since ACH is a US domestic payment system, international businesses cannot receive ACH transfers directly to their local bank accounts. However, modern fintech solutions have created workarounds by providing US-based account details that can receive ACH transfers and then forward funds to international accounts or hold them in USD.

The most common approach involves opening accounts with fintechs like Wise, Aspire, Airwallex, Payoneer, or Mercury. For a full comparison, see our guide to the best digital banks for international businesses. These platforms provide you with US routing and account numbers that can receive ACH transfers from your American clients. The funds can then be held in USD, converted to your local currency, or transferred to your domestic business account.

Required Information for ACH Transfers

To receive ACH transfers, you need to provide your US clients with specific banking information. This includes your US routing number (9-digit bank identifier), your account number, and the account holder name exactly as registered. Some clients may also request your bank's address and SWIFT code for their records, even though SWIFT isn't used for ACH transfers.

For country-specific banking options that support ACH receiving:

- Singapore Business Banking Guide

- Hong Kong Business Banking Guide

- UAE Business Banking Guide

ACH transfers operate under strict security and compliance frameworks governed by Nacha rules and federal regulations. The network uses multiple layers of security including encryption, authentication, and monitoring systems to protect transactions. For international businesses receiving ACH payments, understanding these security measures helps build confidence with US clients and ensures proper handling of received funds.

Nacha's Operating Rules require all ACH participants to implement risk management practices, including transaction monitoring, fraud detection, and return processing procedures. Banks and fintech providers must maintain specific capital requirements and undergo regular audits to participate in the ACH network. This regulatory oversight provides protection for both senders and receivers of ACH transfers.

Common ACH Security Features

• Encryption: All ACH data transmitted between banks uses 256-bit encryption standards
• Authentication: Multi-factor authentication required for initiating ACH transfers
• Transaction Monitoring: Automated systems flag unusual transaction patterns for review
• Return Rights: Unauthorized ACH debits can be returned within 60 days
• Liability Protection: Regulation E provides consumer protections for ACH transfers

While ACH transfers offer significant advantages for international businesses receiving USD payments, they also come with limitations that need careful consideration. This honest evaluation helps you understand when ACH is the right choice and when alternative payment methods might serve you better.

The evaluation is based on real-world experience from international businesses using ACH transfers, feedback from US clients, and analysis of transaction costs and processing times across different payment methods. Consider your specific business needs, client preferences, and cash flow requirements when weighing these factors.

These common errors can cost you money and damage client relationships when receiving ACH transfers.

Providing incorrect routing or account numbers

❌ Consequence: ACH transfers fail or get returned, causing delays and potential fees for both you and your client

✅ How to avoid: Double-check all banking details before sharing with clients and verify numbers directly from your fintech provider's dashboard

Assuming all US clients can send ACH transfers

❌ Consequence: Some smaller businesses or individual clients may not have ACH capabilities, leading to payment delays or alternative arrangements

✅ How to avoid: Confirm ACH capabilities during client onboarding and provide alternative payment options like wire transfers or checks

Not accounting for currency conversion timing

❌ Consequence: Automatic USD-to-local currency conversions may occur at unfavorable exchange rates, reducing your actual payment received

✅ How to avoid: Understand your fintech provider's conversion policies and consider maintaining USD balances to control conversion timing

Mixing personal and business ACH accounts

❌ Consequence: Tax complications, accounting confusion, and potential compliance issues with business banking regulations

✅ How to avoid: Maintain separate business accounts for ACH transfers and ensure all client payments go to properly registered business accounts. Always separate your USD transfers using a UAE business banking account, a Singapore business bank account, or a Hong Kong business bank account to maintain compliance and simplify reconciliation.

Ignoring ACH return notifications

❌ Consequence: Failed transfers may not be immediately obvious, leading to cash flow problems and client relationship issues

✅ How to avoid: Set up notifications for all ACH activity and regularly reconcile expected payments with actual receipts

Information compiled from official Nacha documentation, US Treasury resources, and fintech industry reports to provide accurate, up-to-date guidance for international businesses.

• Nacha - How ACH Payments Work: https://www.nacha.org/content/how-ach-payments-work (accessed 2026-01-15)
• Nacha - ACH Payments Fact Sheet: https://www.nacha.org/content/ach-payments-fact-sheet (accessed 2026-01-15)
• US Treasury - Automated Clearing House: https://fiscal.treasury.gov/ach/ (accessed 2026-01-15)
• Stripe - What is Nacha: https://stripe.com/resources/more/nacha-explained (accessed 2026-01-15)
• NetSuite - Guide to International ACH: https://www.netsuite.com/portal/resource/articles/accounting/international-ach.shtml (accessed 2026-01-15)

Information accurate as of January 2026. ACH rules and fintech offerings change regularly - verify current terms with providers before making business decisions.