Cash Flow Solutions

Bill Pay vs. ACH: What’s the Best Way To Pay Your Vendors?

A female business owner picks up a vendor's invoice while working on her laptop

One of the most frequent transactions small business owners make is paying bills to vendors. In fact, how business owners manage this task can have a significant impact on their overall cash flow.


Bill pay vs. ACH, explained

When it comes to paying vendors, using a debit card or processing ACH transfers tend to be the most typical methods. Paying bills with a debit card means initiating a transaction that’s processed by your card’s merchant and is directly linked to your business checking account. ACH is an abbreviation for Automated Clearing House, which is a network that moves funds electronically from bank to bank.


Each method has unique qualities that may affect your financial routine. How can each apply to you and your business? Here’s a breakdown:

Bill Pay ACH
Speed Within 24 hours 3–5 business days
Authorization Customer authorizes the payment each time a bill is generated. Customer shares bank account number to authorize ongoing payments.
Assurance Funds are guaranteed to the receiver. Funds are liable to be rejected if unavailable.
Processing Fees 0.5%–2% Free (usually)


Manage your bills all in one place

Although both transaction methods are necessary for any business owner, any opportunity to make vendor payments more efficient can help improve your cash flow. If your preference is debit card bill pay, Kabbage Checking™* makes it easy to pay vendor bills with a secure and easy-to-use dashboard. All it takes is entering your vendor’s information once to automate your payments, eliminating the need to manage multiple logins.

*The Kabbage Checking Account is provided by Green Dot Bank


Kabbage offers online business checking accounts designed for small businesses. Learn how Kabbage Checking™ can support your business.

The material made available for you on this website,, owned by American Express National Bank, is for informational purposes only and is not intended to provide legal, tax or financial advice. If you have questions, please consult your own professional legal, tax and financial advisors.

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