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US payments - ACH

Why would you use a 3rd party platform for client payments?

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Hi

To someone who knows this stuff, this is probably a very basic question. 

On invoices from our US company to US clients we give them :

Bank Account Name, Bank Account Number, Bank SWIFT Code, Bank ABA Number/ABA Routing, Bank Address

We bank with a US bank (SVB) that say they can accept ACH credits.

However, our clients are moaning that they have to make costly wire transfers or send checks and we should use something like bill.com for payments.

Why can't they make ACH directly with these details, bill.com is costly for the small client base we have.

The US banking system always baffles!

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By paul.benny
15th Dec 2021 11:25

Kacey2015 wrote:
The US banking system always baffles!

Yes. Hugely inefficient compared with UK.

Have you considered adding a charge to your US invoices (to cover transaction fees) which can be deducted if paying by transfer?

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Replying to paul.benny:
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By Kacey2015
15th Dec 2021 12:08

I don't think that will be palatable, unfortunately. I think it is a point of education for us in the UK (we have no US finance team) about what is stopping our US clients from using these details to make an ACH transfer into our bank account, if that is the preferred cheaper option for them.

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Replying to Kacey2015:
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By paul.benny
15th Dec 2021 16:21

Lots of US banks and businesses are still quite low tech. Just because you can receive ACH transfers doesn't mean they are able to make them.

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By nick farrow
15th Dec 2021 16:44

kacey2015 - did you see my question:
https://www.accountingweb.co.uk/any-answers/getting-paid-from-the-usa

we/our client is still struggling to stop them sending cheques some of them uncrossed and negotiable so stolen and cashed!

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By Leywood
15th Dec 2021 16:53

Americans, supposedly an advanced nation! Banking too fragmented. Just fir starters

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