The Differences Between ACH, Debit, & Credit

Our bookkeepers at All About Businesses have experience with all types of payments, including credit, debit, and ACH, and will teach you about the benefits of each!

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When it comes to payments and transactions, there are multiple different choices that businesses can utilize. Credit, debit, and ACH each have their own benefits and advantages over each other, which is why it’s so important to know the differences between each. In our blog, we’ve managed to highlight some of the ways that they can help your business in the long run, whether by saving you time, effort, or money.


ACH stands for Automated Clearinghouse and is a payment transaction taken through electronic checks. These ACH payments are designed to move money from one bank account to another. As compared to card payments, ACH does not need to use physical cards or checks and can be easily electronically transferred to an account in a few business days, not needing to go through an online card network. Due to its secure and easy methods, ACH is a popular option for businesses and saves them money compared to credit card processing.


Debit cards are a form of payment in which money is taken out of an existing account and given electronically elsewhere. Compared to ACH payments, debit payments are done in real-time and available much sooner, unlike ACH payments which can take several days to arrive. ACH payments do not need to go through a card network, however, like debit and credit must. Debit cards have a PIN number in which they can be identified and will decline if they cannot provide the funds needed.


Similar to debit cards, credit uses a card network to pay for funds. While debit cards are linked to a current amount of money and cannot spend lower than that amount, credit cards are paid off monthly, meaning that a bill or transaction will be put on their card of credit. It’s the card owner’s responsibility to pay this amount when it becomes due, or else fines will begin to pile up. Compared to ACH payments, credit cards can be more reliable in guaranteeing funds, even if they are at a higher cost.

At All About Businesses, our bookkeepers are here and ready to help you manage your payroll and accounts payable/receivable. Our financial consultations can help you decide which payment options might be the best for you and your company, and we are more than willing to sit down and answer any more questions you may have. Helping small businesses succeed is what we’re here for. To contact us, call 503-405-9466, and we’ll get in touch with you immediately.

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