Last editedApr 20231 min read
What is an ACH company ID and what is it for?
An ACH company ID is a 10-digit unique identifier used for identifying entities, called originators, collecting payments via ACH debit.
Similar to a mailing address, an ACH company ID helps ensure an ACH debit is delivered to the correct account holder. All communications with Nacha will use this ID.
Businesses wishing to access ACH directly must request a company ID from the bank.
Those opting for indirect access can instead make use of their TPPP’s company ID.
What is direct access to ACH?
Direct access to the ACH scheme offers businesses more flexibility and control over certain aspects of billing and payment collection. However, directly accessing the ACH scheme requires compliance with onerous financial and regulatory requirements, which means only the biggest businesses with significant resources can consider this route.
What is indirect access to ACH?
Indirect access to ACH means you access the ACH scheme via a compliant third-party licensed to provide scheme access on your behalf, such as GoCardless.
How to collect ACH Debit payments with GoCardless
Create your free GoCardless account, access your user-friendly payments dashboard & connect your accounting software (if you use one).
Easily set up & schedule ACH Debit payments via payment pages on your website checkout or secure payment links.
From now on you'll get paid on time, every time, as GoCardless automatically collects payment on the scheduled date. Simple.
GoCardless and indirect access
GoCardless offers UK businesses of all sizes indirect access to the ACH scheme, allowing you to collect payments from US customers without worrying about technical, legal or financial compliance.
Company IDs and GoCardless
GoCardless uses a single company ID to collect ACH debits on behalf of all of its merchants. This is called collection through aggregation. For merchants who sign up for the Plus or Pro products, GoCardless can show the merchant’s name on the customer’s bank statement.
You can learn more about using GoCardless for ACH debit payments in Chapter 4.
Done-for-you service, no US bank account required
GoCardless takes care of the whole process on your behalf, meeting all requirements, dealing with all correspondence and even automatically converting payments collected in US Dollars into Sterling and depositing them into your UK bank account.
This saves you the hassle of needing to open a US bank account or pay exorbitant foreign exchange fees.
Alternatively, your payments can be deposited into a foreign currency account or a US bank account if you already have access to such accounts.
Quick and easy to set up, more affordable
You can set up payments quickly and easily with just a few clicks using the merchant dashboard. Transaction fees for ACH payments are much lower than for accepting card payments. Furthermore, ACH payments have a higher success rate than cards and are less susceptible to fraud.
Watch Pete, director of Hub Du and a GoCardless customer, speak about collecting international payments with GoCardless: