Guide · April 2026 · 7 min read

ACH vs card: which is cheaper?

For B2B invoices and large one-off payments, ACH can save you 80%+ vs card. For small consumer transactions, card usually still wins. Here's exactly when to use which.

The short answer

Run the math on your processor:

Compare that to card:

On a $5,000 invoice, ACH saves you about $140 per transaction on Stripe. That's real money.

The break-even analysis

ACH's $5 cap on Stripe means it's a flat fee on anything above $625. Below $625 it's 0.8% of the amount. Card is 2.9% + $0.30, which scales linearly. Let's see where they cross:

Amount Stripe card fee Stripe ACH fee ACH saves
$50$1.75$0.40$1.35
$100$3.20$0.80$2.40
$250$7.55$2.00$5.55
$500$14.80$4.00$10.80
$1,000$29.30$5.00 (capped)$24.30
$5,000$145.30$5.00 (capped)$140.30
$25,000$725.30$5.00 (capped)$720.30

ACH wins at every transaction size above roughly $15. Below that, the base math can flip (since ACH has no fixed fee on Stripe, it's just 0.8%), but payment settlement delay (3–5 business days) often makes card more practical for small transactions even if fractionally cheaper on ACH.

When card still wins (even if it's more expensive)

ACH isn't always the right choice. Real situations where card is correct:

1. Consumer checkout

A typical shopper expects card checkout. Asking them to type in a bank account and routing number triples the friction and causes abandoned carts. Use card for consumer e-commerce; use ACH for B2B invoicing where the customer expects it.

2. Small transactions (< $20)

On a $10 sale, ACH saves you about $0.50 (Stripe: $2.90 card vs $0.08 ACH). The 3–5 day settlement delay isn't worth the tiny savings for most small transactions. Just take the card.

3. Fast cash flow requirements

Card transactions settle in 1–2 business days on Stripe. ACH takes 3–5. If you need cash flow to work on a tight cycle, card's speed matters.

4. Recurring small subscriptions

For $10/month SaaS subscriptions, the 2.9% + $0.30 card fee is $0.59 — ACH saves $0.51. Not worth the added complexity of ACH authorization (which requires micro-deposits or Plaid). Just use card.

When ACH is a no-brainer

1. B2B invoices above $500

If you're invoicing businesses and the amount is above ~$500, always default to ACH. A $5,000 invoice saves you $140+ vs card — that's real margin. Most modern businesses can pay via ACH without complaint.

2. Rent, retainers, and recurring large payments

Agency retainers, property management rent, legal retainer deposits, large SaaS contracts — ACH is table stakes here. No serious business wants to pay 3% on a $10K retainer when they can pay flat $5.

3. Payroll and contractor payments

If you're paying people (versus collecting from customers), ACH is the default. Direct deposit is cheaper than card disbursement for both sides.

4. Large one-off purchases from known customers

A wedding venue booking, a custom furniture order, a large coaching package — if the customer is committed and the amount is significant, offer ACH as an option with a small discount (even 1% discount for ACH is still cheaper for you than 2.9% + $0.30 on card).

The implementation side

ACH on Stripe requires one of:

For B2B invoicing, the Financial Connections flow is the right choice — low friction, instant, low marginal cost. For consumer subscriptions where ACH is worth the effort (uncommon), Link is cleanest.

Discount for ACH — the pricing trick

A tactic large B2B SaaS companies use: list the card price, offer a 2–3% discount for annual payment by ACH. The customer feels they got a deal; you actually save 1–2% vs card (because you're giving back less than card would have cost). Both sides win versus card.

Example on a $10K annual contract:

By processor: which has the best ACH economics?

Stripe — best for most cases

0.8% capped at $5. On large invoices, impossibly cheap. Good dev experience with Financial Connections. Default choice for online B2B.

Square — excellent for Square users

1% with $1 minimum. No cap — so on very large invoices (above $500), Square ACH is slightly more expensive than Stripe. But Square's invoicing ecosystem is simpler for non-technical users. If you're already on Square for in-person, add Square Invoices for ACH.

PayPal — skip for ACH

PayPal doesn't have a clean ACH product on most tiers. If you're doing B2B invoicing at any scale, use Stripe or Square for invoicing and keep PayPal for consumer checkout only.

Shopify — limited ACH

Shopify Payments doesn't offer standalone ACH for most storefronts. Some merchants use Bolt or other third-party apps for ACH — but those come with the Shopify third-party gateway penalty (see our hidden fees guide).

Summary: ACH decision tree

Running your own numbers

To see the exact math on your transaction mix, try:

See your ACH savings

Enter your typical invoice amount and switch between card and ACH in the Stripe calculator — the savings are stark.

Try the Stripe calculator → Compare all processors