Summary
You can cut the cost of getting paid on a large B2B invoice by offering direct debit next to card. On Stripe's standard US pricing a $10,000 invoice costs $290.30 by card and $5.00 by ACH Direct Debit. Card confirms at once, while an ACH debit can take up to 4 business days, so card gets paid sooner and direct debit costs less.
- Cost: Stripe's standard US price is 2.9% + 30¢ for a domestic card and 0.8% capped at $5.00 for ACH Direct Debit. Above $625 the ACH fee stops growing.
- Speed: A card payment confirms while the customer waits. Stripe says an ACH debit can take up to 4 business days to confirm success or failure.
- Risk: A business account can dispute an ACH debit for up to two business days. A cardholder typically has 120 days to dispute a card payment.
A customer pays a large invoice by card, and Stripe takes a fee several times what an ACH debit would have cost you. You think about turning card off for big invoices, then remember the customer who pays the same day only because the card was right there.
Paidnice customers ask us whether bank debits are cheaper than cards for their customers, and whether to keep both. Here is what card and direct debit each cost on a B2B invoice, how fast each gets you paid, how disputes and failures differ, and how to offer both without losing on either.
Paidnice is accounts receivable automation for businesses on Xero and QuickBooks Online. Customers pay from a portal by card or by direct debit, through Stripe.
Free: Payment reminder email templatesCopy the reminder emails for before, on and after the due date.Card and ACH direct debit side by side
| Card | ACH Direct Debit | |
|---|---|---|
| Stripe standard US fee | 2.9% + 30¢ | 0.8%, capped at $5.00 |
| Fee on a $1,000 invoice | $29.30 | $5.00 |
| Fee on a $10,000 invoice | $290.30 | $5.00 |
| Payment confirmed | At once | Up to 4 business days |
| Customer can dispute | Typically within 120 days | Business account: 2 business days. Personal: 60 calendar days |
| Can you contest a dispute? | Yes, with evidence | No, disputes in the window are final |
| Fails | Declined while the customer is paying | Can fail days after the customer clicks pay |
Fees are from Stripe's US pricing. Timings and dispute rules are from Stripe's ACH Direct Debit and disputes documentation. Custom Stripe pricing and international cards cost differently, so check your own account.
Which costs less
Direct debit costs less on every B2B invoice above a few hundred dollars. The ACH fee is 0.8% until it hits the $5.00 cap at $625, then stays at $5.00 however large the invoice. The card fee keeps rising at 2.9% of the total.
On a small invoice the gap is small. At $100, card costs $3.20 and ACH costs $0.80. For a business with mostly small invoices, the time customers save paying by card can matter more than the fee.
Paidnice adds no fee to either method on any plan. You can pass a processing fee on to the customer and set it separately for card and for direct debit, so a customer who picks the cheaper method pays less. Card brand rules and some state laws limit card surcharges, so check them before you pass a card fee on.
Which gets paid sooner
Card gets paid sooner. The payment confirms while the customer is still on the page, the invoice is paid in your ledger the same day, and Stripe pays out to US accounts on a 2 business day schedule by default (Stripe payouts).
An ACH debit is pending for up to 4 business days before Stripe confirms it. If the customer's account needs micro-deposit verification, add a few more. One US distributor using Paidnice saw a bank debit take two weeks to clear because of verification, and in that time the customer paid the same invoice another way.
The bigger speed effect is earlier in the process. A customer with no card to hand, or a card limit below the invoice, often waits for their next payment run. Offering direct debit next to card gives that customer a way to pay on the day the reminder arrives.
Disputes and failures
Disputes favor direct debit on B2B invoices. Stripe says a business account can dispute an ACH debit for "up to two business days", and a personal account for up to 60 calendar days. A card payment can typically be disputed within 120 days, although you can respond with evidence.
Failures favor card. A declined card fails while the customer is still paying, so they try another card. An ACH debit can fail days later, after the customer thinks they have paid.
In Paidnice, a failed debit freezes the invoice so no reminder or automatic late fee goes out until you sort it out with them. See what to do when a direct debit fails.
Which to offer
- Offer both on every invoice. Let the customer choose, and price the choice with separate pass-on fees if you want to steer them.
- Steer large and regular invoices to direct debit. The fee is capped, and business accounts have a short dispute window.
- Keep card for small, one-off and urgent payments, and for customers who want points on their card.
- Use direct debit for payment plans. Customers save a bank account for Autopay, and each installment of a payment plan is collected on its date (Pro and above).
One customer asked us to switch off the ACH surcharge for customers on Autopay, because those customers had already agreed to pay by debit. If you pass fees on, decide up front which customers they apply to, and tell customers before the first one is charged.
Outside the US
The same trade-off holds in other countries, with different schemes and prices. See Bacs Direct Debit for the UK, SEPA Direct Debit for euro invoices, BECS Direct Debit for Australia and pre-authorized debit for Canada. For the US setup in full, read how to accept ACH payments on B2B invoices.
How Paidnice handles card and direct debit
- One portal, both methods: the customer payment portal has a card or direct debit choice, and the customer can pay one invoice, several or the whole balance.
- Separate fees: Stripe settings in Paidnice hold separate processing fee rates for card and for direct debit, each with its own revenue account.
- Every attempt on one page: the Payments page shows pending debits, failed debits, abandoned checkouts and payments that did not sync to the ledger.
- Fees in the ledger: Paidnice records each payment in Xero or QuickBooks with the Stripe fee and any surcharge.
💡 Paidnice insight
The double payments we have seen come from two moments: a customer lands back on the pay screen right after paying and pays again, or a bank debit is still pending and they pay another way. Check the Payments page before you send a reminder on an invoice that a customer says they have paid.
Frequently asked questions
Is ACH cheaper than a credit card for B2B payments?
Yes, on almost every invoice. On Stripe's standard US pricing ACH Direct Debit is 0.8% capped at $5.00, against 2.9% + 30¢ for a domestic card.
Can I charge customers a card fee on invoices?
Often, but card brand rules and some state laws limit card surcharges, so check them first. In Paidnice you can pass on a processing fee, set separately for card and direct debit, or pass on none.
Why does a direct debit take longer than a card?
A card payment is approved by the card issuer while the customer waits. A bank debit moves through the ACH network, and Stripe waits for the customer's bank to accept it, which can take up to 4 business days.
Should I turn card off for large invoices?
Not usually. Some customers pay the same day only because card is an option. Pass a card fee on instead, or show direct debit as the cheaper choice, and let the customer decide.
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About the editorial team
Ashley is a co-founder and lead developer of Paidnice and has built accounting software for more than 10 years. He builds the ledger connections that put reminders, late fees and payments into Xero, QuickBooks and ERPs such as NetSuite and Business Central. Before Paidnice he co-founded A2X, ecommerce accounting software for Xero and QuickBooks.
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