Paying U.S. vendors, contractors, or suppliers from Canada often feels more complicated than it should be.

Most Canadian businesses default to expensive wire transfers and get hit with fees on both ends, plus unpredictable FX rates that eat into their margins. ACH payments solve this problem. They're faster, cheaper, and more predictable than wires. With the right setup, you can send USD directly to U.S. bank accounts for free.

This guide shows you exactly how ACH payments work, when to use them, and how to send them from Canada without paying wire fees or FX charges.

What is an ACH Payment

An ACH payment (Automated Clearing House) is an electronic bank transfer that moves USD between U.S. accounts. 

NACHA (The National Automated Clearing House Association) governs the system, processing transactions in batches at scheduled intervals. In the U.S., ACH is standard for payroll, vendor payments, utility bills, and subscriptions. It's the cheapest way to move money domestically.

For Canadian businesses, ACH is the most cost-effective method to pay U.S. partners when you have a USD account. If you hold a local USD account like Venn provides, you can send ACH payments as if you were based in the U.S. This avoids forced conversion from CAD to USD and eliminates the foreign exchange fees that banks and payment providers typically charge.

Many Canadian businesses are familiar with EFT (Electronic Funds Transfer) for domestic CAD payments, but ACH is its U.S. equivalent for moving USD. While they share similarities, there are key differences in processing, cost, and use cases. Here’s a breakdown that explains the main difference between ETF and ACH.

Why Canadian Businesses Use ACH Payments

Lower cost than wires

Wire transfers can cost $15 to $30 for domestic U.S. wires and even more for cross-border payments. ACH payments usually cost under $1. Canadian Big Banks often advertise ACH but actually send the payment over SWIFT or wire rails because their USD accounts are not truly held in the U.S.

In practice, this means they charge $20 to $30 per transfer and the payment is not processed as a real ACH. With Venn, you hold a local USD account so your payment moves through the ACH network as intended. This makes it both a true ACH and completely free.

No FX when paid from USD

If you pay in USD from a USD account, your funds are sent without conversion. Venn’s local USD accounts ensure your payment arrives in full USD with no hidden foreign exchange fees.

Ideal for recurring payments

Because ACH is batch-processed and scheduled, it is well suited for repeat payments to U.S. suppliers, contractors, or subscription services.

Secure and regulated

ACH payments run on a regulated network with built-in fraud monitoring and dispute resolution processes. This makes them more secure than mailing cheques and often more predictable than some international wire routes.

Easy to automate

With the right payment platform, you can set up recurring ACH payments, schedule them in advance, implement multi-level approval workflows for added control, and sync all transactions with your accounting software. This reduces manual work and helps maintain clean financial records.

How to Make an ACH Payment Step-by-Step

1. Open or select your USD account

You need a U.S. dollar account connected to the ACH network. Venn provides a local USD account that sends and receives ACH transfers at no cost. You operate like a U.S.-based business without the overhead of a traditional bank account.

2. Gather recipient banking information

You'll need:

• Routing number (9 digits)
• Account number
• Account type (checking or savings)
• Recipient’s legal account name
• Payment amount in USD
• Optional: invoice number or payment note for reconciliation

Always confirm these details with your recipient. Even small errors in routing or account numbers cause delays or returns.

3. Access your payment platform

If you're using Venn, log in, select your USD account, and choose ACH transfer as the payment method.

4. Enter payment details

Add the recipient’s banking information, the payment amount, and any reference notes for tracking. If this is a recurring payment, you can schedule it in advance so it runs automatically.

5. Review and approve the payment

ACH payments are processed in batches, so timing matters. Payments submitted before the daily cut-off will be included in that day’s batch, while those submitted later will process on the next business day. Standard ACH takes 1 to 3 business days, depending on when it is sent.

Here’s what the recipient will see on their bank statement when you send funds using ACH.

6. Track and reconcile

Once your payment is sent, track its status in your dashboard. With Venn, every ACH payment is recorded automatically and synced with your accounting system, including QuickBooks and Xero, saving time on reconciliation and reporting.

ACH Costs and Processing Times

Typical provider costs:

• $0.20–$1.50 per payment
• Processing time: 1–3 business days, with some providers offering same-day ACH for a fee.

With Venn:

• Free from your local USD account
• No FX fees
• Standard 1–3 business days with same-day processing when submitted before cut-off.

Best Practices for ACH Payments

Double-check all banking details before initiating the transfer. For example, confirm the recipient’s routing and account number directly with them to avoid returns or delays.

Schedule recurring ACH payments for regular vendor invoices, contractor wages, or subscription fees to maintain consistent cash flow and avoid missed deadlines.

Keep track of ACH cut-off times to ensure timely delivery, especially if your payment is tied to project milestones or payroll.

Implement approval workflows for higher-value payments, such as large supplier orders or one-off service contracts, to reduce risk.

Use accounting integrations to automatically record and categorize ACH transactions in your ledger, so your month-end reconciliation is faster and more accurate.

Ready to send ACH from Canada without fees or FX? Get started with Venn today!

Frequently Asked Questions (FAQ)

Can I send ACH from Canada?

Yes. If you have a local USD account connected to the ACH network, you can send ACH payments just like a U.S. business. Venn includes this capability so Canadian businesses can send ACH for free with no FX.

Is ACH cheaper than a wire?

Yes. ACH is significantly less expensive than wire transfers. With Venn, you can send ACH for free from your USD account.

Can an ACH payment be reversed?

Yes. ACH payments can be reversed in cases of error, unauthorized transfer, or fraud, but reversal requests must meet NACHA guidelines and be submitted quickly.

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_{This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Venn Software Inc or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional. We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.}