How to Set Up a Bank Transfer (ACH Payment) on FreshBooks in a Few Easy Steps

Give your customers the flexibility and convenience of paying by bank transfer, now available for U.S.-based customers.

ACH Payments

If you’re an independent contractor, you likely have a diverse portfolio of clients—each with their own preferred payment method. Some opt for online payments, while others stick with old-school checks—after all, money is money.

But the more clients you take on, the more you’ll need to establish flexible payment options to keep everyone happy (and to keep you getting paid).

That’s why FreshBooks is introducing Bank Transfers (a.k.a. ACH payments). It offers your clients the convenience of paying by bank transfer and saves you a trip to the bank to deposit the money. The fee is 1% per transaction, capped at $50 or less on FreshBooks Select Plans.

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    What Is a Bank Transfer (ACH Payment)?

    Bank Transfers, or ACH payments (which stands for Automated Clearing House), allow your clients to transfer money online from their bank to yours. ACH in particular connects financial institutions across the U.S. for seamless transfers.

    How Do I Enable Bank Transfers (or ACH Payments)?

    To enable Bank Transfers:

    1. Log into your FreshBooks account and click the gear icon in the top left corner.
    2. Click on Online Payments Settings. Here’s what it looks like in-app:

    ach payment

    3. Click Get Started with Online Payments and then click Continue
    4. Verify your email, business information, and add a bank account
    5. Now, you’ll have the option to accept Bank Transfers on an invoice

    You can also enable ACH payments directly on an invoice:

    1. Click Accept Online Payments on the right of the invoice.
    2. Select the checkbox beside ACH.
    3. Click Done. That’s it!

    Here’s what it looks like in-app:

    ach payments 2

    Why Should I Enable Bank Transfers (ACH Payments)?

    Here are a few great reasons:

    • Only a 1% flat fee, lower than a credit card payment
    • Get paid 2x faster than by check
    • More flexibility and convenience for clients
    • No setup fees, monthly fees, or minimum charges
    • A good, reliable option for recurring payments
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    How Long Do Bank Transfers Take?

    Good question! Bank transfers are often completed in 1 business day. But they can take up to 3 days depending on how long it takes the financial institution to process the transaction from your bank account.

    How Do ACH Transactions Work?

    ACH payments are similar to a bank transfer or wire transfers (the sending of money from one bank account to another). So let’s say a client wants to use ACH payments on an invoice. When you send the invoice out to be paid, your client can provide their bank account information to you (their account and routing number) and sign an authorization for ACH transactions.

    Then, when it’s time to pay, your bank will send their bank a request to transfer the money they owe from the provided account. And the two banks will then communicate to ensure that there are sufficient funds to process the ACH transaction into your bank account (similar to a direct deposit).

    All of this is done through the Automated Clearing House network, who handle the transactions for a variety of banks and financial institutions.

    Need Help With Bank Transfers (ACH Payments)?

    If you have any questions about getting started with Bank Transfers or ACH payments (like how to set up ACH payments, what are the ACH transaction fees, or how exactly do ACH payments work) feel free to reach out here.

    Plus, learn more about accepting online payments with FreshBooks Payments, Stripe, and Paypal.

    This post was updated in January 2023.

    Dave Hayes

    Written by Dave Hayes, Sr. Copywriter, FreshBooks

    Posted on February 8, 2023