Accept ACH Payments: Setup, Fees, Timing & Common Issues (2025)
If you get paid by US clients, ACH is often the easiest way for them to pay you, because it’s a domestic US bank transfer, not an international wire.
For Indian freelancers, agencies, and exporters, the practical question isn’t “What is ACH?” It’s: How do I accept ACH payments from the US without opening a US entity or dealing with SWIFT delays and unpredictable deductions?
This guide answers that—clearly, end-to-end.
TL;DR
- ACH (Automated Clearing House) is the US system for bank-to-bank transfers. It runs on rules published by Nacha.
- To receive an ACH payment, you typically share: routing number + account number + account type + recipient name (matching your account).
- ACH Credit (“push”): your client sends funds to you.
- ACH Debit (“pull”): you collect funds only after the client authorises it.
- Timing: standard ACH commonly completes in ~1–3 business days, depending on cutoff times and method
- Returns risk: many ACH returns happen fast (often 2 banking days), but unauthorised consumer debit disputes can extend to ~60 days.
- If you’re in India, you can accept ACH by using either: a US bank account, or a FinTech virtual US account that gives you US routing + account details (your client pays you like a local US transfer).
What exactly is an ACH payment?
ACH stands for Automated Clearing House, the US network that moves money electronically between bank accounts.
Think of it as the “default rail” for:
- vendor invoice payments
- monthly retainers
- payroll
- subscriptions and recurring collections
ACH is built for volume and cost-efficiency, not instant settlement. It processes payments in batches during the day (with same-day options depending on the bank’s setup).
ACH Credit vs ACH Debit (and why it matters)
The biggest confusion is who initiates the payment.
ACH Credit (Push)
Your client initiates the transfer from their bank account to yours. This is the most common setup for freelancers/exporters getting paid by US businesses.
ACH Debit (Pull)
You (or your payment provider) initiates collection from the client’s bank account, only after authorisation. Debits have higher dispute/return risk than credits, so authorisation + clean records matter.
A useful mental model:
- Client pays from their bank portal → usually ACH Credit
- Client pays via a payment link/mandate → often ACH Debit
How ACH payments work behind the scenes
You don’t need to memorise acronyms, but understanding the flow helps when a payment is “stuck.”
- Client’s bank (ODFI) accepts instructions
- Payments are sent via an ACH Operator (e.g., Federal Reserve processing)
- Your bank/provider’s bank (RDFI) receives and posts the entry
- Funds become available based on settlement + bank posting timelines
The ACH network operates nearly the full banking day and settles multiple times daily.
What you need to receive ACH payments (and what NOT to share)
You typically need to share:
- Routing number (ABA number) – identifies the US bank
- Account number – identifies your specific account
- Account type – checking or savings
- Recipient name – must match the account name
Share securely (seriously)
Use invoices, a client portal, or secure payment links. Avoid sending bank details in random screenshots or public chats.
What you should NOT share
- OTPs
- bank login credentials
- “verification codes” from any bank email/SMS
- IDs/documents unless the request is verified and necessary
How long does it take to receive ACH payments in India?
When people say “receive ACH in India,” they usually mean: how long until the money lands in my Indian bank account (INR) — not just when it reaches US banking rails.
So the timeline has two parts:
1) US-side ACH processing (client → your US/virtual US account)
- Standard ACH: typically 1–3 business days, depending on cutoff times and the bank’s processing schedule.
- Same Day ACH (if used): can settle the same business day when submitted within eligible windows.
- Nacha also notes that a large share of ACH payments settle in one banking day or less (combining regular + Same Day ACH).
2) India-side payout (your provider → your Indian bank)
This depends on how you’re receiving ACH:
- If you use a FinTech virtual US account (like Skydo), after the ACH hits your US/virtual account, the platform converts and transfers to your Indian bank. Skydo, for exampl,e settles most ACH payments within 23 hours.
- If you use your own US bank account and then remit to India separately: add extra time depending on the method you use (wire/remittance rails, bank holds, compliance checks).
The real catch: returns, reversals, and dispute windows
ACH is cheap, but not “final” the way some people assume.
Typical return window (common cases)
Many return reasons (wrong account, closed account, insufficient funds) are typically returned quickly, often within ~2 banking days, depending on the code.
Unauthorized debits (bigger risk)
For certain unauthorised consumer debit scenarios, the return/dispute timeline can extend to ~60 days and often requires a formal unauthorised statement process.
Practical takeaway:
- Prefer ACH Credit for invoice payments where possible
- If using ACH Debit, keep authorization records airtight
How to set up to receive ACH payments (2 practical options)
Option A: Receive ACH with a US bank account
If you already have a US-domiciled bank account that supports ACH:
- Confirm it accepts ACH credits
- Get routing + account number
- Put details on your invoice
- Ask the client to include invoice/reference in the memo/addenda field
Option B: Receive ACH using a FinTech virtual US account (common for India)
If you’re in India and don’t want to set up a US entity/bank relationship, many businesses use a virtual US account that provides:
- US routing number
- US account number so the client can pay via domestic ACH instead of SWIFT.
Flow:
- Sign up → generate US account details
- Share those details on your invoice
- Client sends ACH like any local US bank transfer
- Track payment status + reconcile against invoice
- Convert/settle to INR as per your provider’s process
Where Skydo fits (positioning without the hard sell)
Skydo is built for Indian businesses receiving international payments, especially from the US.
For ACH specifically:
- Skydo can provide US account details (routing + account number) so your client can pay via domestic ACH instead of an international wire.
- For collections, InstaLinks can be used to request payments via a secure flow (helpful when you want a “pay link” experience rather than emailing bank details).
- You also get payment tracking + easier reconciliation, and (where applicable) compliance documentation support like FIRA as part of the receiving workflow.
A practical “receiving ACH” playbook (templates)
1) Invoice payment instructions (paste into invoices)
“Please send payment via ACH transfer to:
Routing Number: [ ]
Account Number: [ ]
Account Type: [Checking/Savings]
Recipient Name: [Exact legal name on account]
Payment Reference: [Invoice number / Project ID]”
2) Client email template
“Sharing ACH details for the invoice payment:
Routing Number: [ ]
Account Number: [ ]
Account Type: [ ]
Recipient Name: [ ]
Please include the invoice number in the reference/memo field. Happy to help if your bank asks for any additional fields.”
3) Reconciliation rule (non-negotiable)
Always require a unique reference (invoice number / contract ID). It saves hours later.
Conclusion: the simplest way to accept ACH
If your US clients want to pay via bank transfer, ACH is usually the most practical rail—cheap, familiar to US finance teams, and ideal for invoices/retainers.
If you already have a US bank account, setup is straightforward. If you don’t (which is most Indian freelancers/exporters), a virtual US account route is typically the cleanest way to let clients pay via domestic ACH—without forcing SWIFT on them.
And if you want a setup that’s built specifically for Indian businesses receiving from the US, Skydo is designed to handle that workflow end-to-end: US receiving details, tracking/reconciliation, and settlement to INR at live forex rate, that too within 24 hours. Sign up today and see the difference for yourself.
Is ACH only for the US?
Yes—ACH is a US domestic rail. To receive it, you generally need US bank details (directly or via a virtual US account).
How do I accept ACH payments in India?
What details do I need to share to receive ACH?
