Recurring billing for B2B service companies: cards or ACH?
Billing B2B clients every month? When to charge cards and when to pull ACH, what each costs, how to set up the billing, and what a new company should expect.
If your company bills clients every month, for a retainer, a managed service or a subscription, two rails do the work: cards and ACH. The right answer is usually both, from one billing setup, with each client on the rail that fits the size of the invoice.
The short answer: use cards for smaller monthly fees, where convenience and quick setup matter, and ACH for larger invoices, where card costs add up. Store both in one billing vault, retry failed payments automatically, and expect a new company’s account to start with a monthly limit and add ACH once card history builds.
What each rail costs
On interchange-plus pricing, a card payment costs the card networks’ published rate for that card plus a fixed markup. Business and corporate cards carry the highest rates, often near 2.5 to 3 percent all in. ACH is priced as a flat amount per debit, or a small percentage with a cap.
| Monthly invoice | Business card, about 2.7% | ACH, flat per debit |
|---|---|---|
| $500 | about $13.50 | about $0.25 to $1 |
| $2,500 | about $67.50 | about $0.25 to $1 |
| $10,000 | about $270 | about $0.25 to $1 |
The figures are illustrative; the shape is the point. Card cost grows with the invoice and ACH cost barely moves. On larger B2B invoices, passing Level 2 and Level 3 data lowers the card rate, and in most states you can surcharge credit cards within the rules.
Cards: where they win
- Clients who want to pay by card for rewards or cash flow
- Small monthly fees, where the card cost is small in dollars
- Fast setup: one form, and the card is stored for every future month
ACH: where it wins
- Invoices in the thousands, where card costs add up
- Clients who pay from their operating account anyway
- Long relationships, where the authorization is set up once
ACH has its own rules. A recurring debit needs the client’s written or recorded authorization, payments take one to two business days to settle, and debits can come back as returns, for insufficient funds or a closed account, days after they were sent. Return windows for business accounts are shorter than for consumer accounts, but the risk sits with you until the debit settles.
The billing setup
Whichever rail, the setup that keeps revenue steady looks the same:
- A billing vault. Cards and bank details are stored once, as tokens, and charged on schedule.
- Card updater. Replaced and expired cards update automatically, so renewals do not fail.
- Smart retries. A declined charge retries on a schedule instead of waiting for someone to notice.
- Clear descriptors and invoices. The client recognizes the charge, which keeps disputes down.
- A client portal. Clients update their own payment method and download invoices.
What a new company should expect
Underwriting has no history to look at, so it works from your projections. Expect:
- A starting monthly limit, set from the forecast and raised as clean history builds. A realistic forecast serves better than an ambitious one.
- ACH added after a few months of card history, because ACH returns can arrive after the money has moved.
- Questions about your contracts: the term, how clients cancel, and what happens to a payment when a client leaves mid-month.
Where Epitychia fits
We set up merchant accounts and billing for B2B service companies, with cards and ACH from one vault, priced on interchange plus. We underwrite the account to the business you have today and step it up as history builds. See our merchant services or book a strategy call.
Frequently asked questions
Should B2B clients pay by card or ACH?
Offer both. Cards suit smaller monthly fees; ACH suits larger invoices, where card costs add up.
What does ACH cost compared with cards?
ACH is a flat amount per debit, often under a dollar. Business cards often run near 2.5 to 3 percent of the invoice.
Do I need permission to debit a client’s account every month?
Yes. A recurring ACH debit needs the client’s written or recorded authorization.
Can a new company get ACH right away?
Sometimes, but many acquirers add ACH after a few months of card history.
Can I pass card fees on to clients?
In most states you can surcharge credit cards within the card network rules and caps. Debit cards cannot be surcharged.
