Understanding ACH payments: a complete guide for French businesses operating in the US

Key takeaways

• ACH payments dominate the US B2B payment market. So if your French business is looking to expand into the US, you need to find a way to access the ACH payment network.

• ACH takes longer than wire transfers, that’s true. But its lower fees and payment predictability far outweigh the length of the process.

• There’s good news. You don’t have to open a US entity to access the ACH network. Open an account with Airwallex and send and receive ACH payments to US suppliers and customers (while avoiding double currency conversion fees).

If you’re expanding into the American market, you might have a few questions about how money moves in the US. The dominant payment network in the US is the Automated Clearing House (ACH).

The problem many non-American businesses face? You typically need a US bank account to process ACH payments. And, how do you get a US bank account? By opening a US legal entity. The process itself can be time-consuming and expensive.

Thankfully, modern financial tech has a solution. Tech exists to help French businesses tap into ACH rails without the stringent traditional requirements.

This blog explores what ACH payments are, how they work, and some of their pros and cons.

How ACH payments work (step-by-step)

Here’s how the ACH payment process works in four steps.

1. Initiation

The transaction starts when the payer or payee submits payment instructions. So, for this, you need the recipient’s routing number, account number, and the payment amount. If it’s a debit transaction (where the bank pulls funds from a bank account), the payer must have previously authorised this transaction.

2. Batching

ACH transactions differ from wire transfers in that banks don’t process them individually. Instead, they collect several payment requests across the day. This batch system is why ACH payments are cheaper than other payment methods, although the processing time is longer.

3. Clearing

Before money moves anywhere, banks send payments to the ACH operator (Federal Reserve or The Clearing House) to sort and route transactions to the correct receiving banks.

4. Settlement

The receiving bank credits or debits the correct account within one to three business days, if it’s a standard payment. You can get payments processed on the same day for transactions up to $1 million per payment. To take advantage of this, you must submit payments before specific cut-off times, and you might have to pay a fee.

This process can take many days, which is in complete contrast with wire transfers. But if you’re not in a hurry for the funds (either debited or credited), or the payments are recurring, you stand to save a significant amount of money.

How French businesses can access ACH without a US bank account

So, how can you access ACH without setting up a whole entire US entity? It’s simple, really.

Open a USD account with Airwallex

No need to navigate US banking regulations with this option. Simply open a Global Business Account with Airwallex and get unique US account details, including routing and account numbers. These accounts act just like a US bank account for ACH. You can receive ACH credits from your US clients, and you can initiate ACH debits to collect recurring payments.

Now you can:

Receive ACH like a US-based entity. All your US supplier has to do is enter your Airwallex-provided routing and account numbers into their own payment system. It’s as simple as that.

Pay US suppliers via local rails instead of SWIFT. Having a global Airwallex account doesn’t just mean you can receive payments; you can pay US suppliers, too, without the hefty wire transfer fees. ACH payments are predictable and cost-effective.

Avoid double FX and hidden fees. Using traditional banks means you’re stuck paying two sets of conversion fees: when receiving USD payments and converting to EUR, then again when paying USD invoices from your EUR account. Instead, you can hold multiple currencies in your Airwallex account, avoiding forced conversions.

Kitchenware company, Dalstrong, opened a global account with Airwallex to eliminate double foreign exchange fees when expanding into North American markets. By holding USD directly and using local payment rails, they avoided Amazon's 2.5% FX fees on international currency drawdowns, helping them reduce costs when paying US suppliers and partners.

How Airwallex improves ACH for global businesses

We don’t just provide your French business access to US payment rails; we offer you so much more.

Interbank FX rates and no hidden bank fees

We offer you competitive, interbank FX rates, meaning you don’t have to pay the 2-3% markups traditional banks add on. Plus, our pricing is transparent, so you can better plan your finances, forecast and budget effectively.

One dashboard for EUR, USD, and other currencies

There’s no need to log into multiple banking portals to access different currencies. With Airwallex, you log into one centralised dashboard to view balances for your EUR, USD, GBP, and other currencies. Guess what else? You can track all cross-border payments and manage all entities from one place.

API for recurring, invoice, and payroll ACH flows

If you offer subscription services, we provide a robust API infrastructure. You can automate recurring billing, process batch payments, and initiate ACH payments. And you can integrate all of that with your existing business systems, like Xero, NetSuite, Sage, Shopify, or HubSpot.

Expansion without the faff

If your strategic plans don’t align with opening a US entity, that doesn’t mean you can’t expand effortlessly into US markets. By opening a global business account with Airwallex, you can access those essential ACH payment rails without the traditional bank account requirements. Start building credible, trustworthy relationships with your US suppliers and send and receive B2B payments through a network they’re familiar with (and doesn’t cost you a small fortune).

Comparing ACH, wire transfer, and card payments

Preferred by US businesses for B2B payments and subscriptions Large organisations for urgent payments Any business that needs instant payment confirmation or consumer convenience, e.g. through integrated payment on your website.

What is ACH, and why does it exist in the US?

Since the 1970s, the ACH payment network has replaced paper cheques and helped streamline domestic money transfers between American banks and credit unions.

It’s still the dominant payment network in America, connecting more than 10,000 financial institutions across the country, handling over 33 billion payments in 2024 alone. If your French company is completing B2B transactions in the US, an ACH payment is still preferred for American companies. That means you must understand how it works.

Benefits of ACH for business working with the US

Still unsure whether ACH is for your business? Here are a few useful benefits:

Lower payment costs on recurring invoices. Instead of paying out for international wires or card payments for monthly or quarterly US client invoices, you can take advantage of the low payment processing costs through ACH.

High trust and adoption in the US market. For B2B payments, American markets expect ACH as it’s the standard. When dealing with US clients, if you offer ACH as a payment option, you’re immediately building trust and familiarity while removing any friction from the e-commerce payment process.

Easier B2B reconciliation vs card payments. Make reconciliation easier by attaching invoice numbers, purchase order references, and other identifying information to the payment itself. No matching payments to invoices here.

Preferred by US enterprises and SaaS buyers. ACH is a favourite amongst large organisations. Why? Because it’s a trusted payment method, it’s reliable, has stronger audit trails, and the list goes on. So if you’re hoping to snag some enterprise clientele, you should prioritise slotting your French business into the US financial ecosystem.

Limitations and risks of ACH

As with any payment method, there are benefits and drawbacks. And it would be remiss of us to skip over the limitations, wouldn’t it?

US-only network

ACH is a domestic system, which means it does not facilitate cross-border payments like SEPA does for Europe. Although some banks support international transactions, many still don’t, which means you’ll need a USD account, either from a US bank or through a payment platform like Airwallex.

Reversals and chargeback windows

Customers can claim unauthorised debit transactions for up to 60 days after the transaction date. This can leave you fending off stressful cash flow shortages, potentially halting business operations.

Slower than instant rails

Standard ACH payments usually take between one and three business days. So if you need a supplier to pay quickly for cash flow planning purposes, you might want to consider alternative payment methods.

Compliances, KYC, and fraud considerations

You can protect yourself against fraudulent card payments easily with the CVV and MFA (multi-factor authentication). But with ACH payments? You’re slightly more vulnerable to fraudsters. That’s because all you need to process a payment through the ACH network is an account and routing number.

Ready to expand into US markets? Open a global business account today and start accepting ACH payments from your American clients (and eliminate unnecessary banking fees and currency conversion costs in the process).

FAQs

Do I need a US entity to accept ACH payments?

No, you don’t. You can access ACH payments through fintech platforms like Airwallex without the hassle of setting up a US legal entity.

How long do ACH payments take to process?

Standard ACH payments can take between one and three business days to process. Same-day processing is possible for transactions up to $1 million.

What information do I need to send an ACH payment?

All you need is the recipient's routing number, the payment amount, and their account number. You will also need prior authorisation for debit transactions.