Which payment method is typically less costly than credit cards for large transactions?

ACH payments are typically less costly than credit cards for large transactions due to their lower processing fees. When it comes to accepting payments, credit card transactions often incur higher fees that can vary based on the card type and processing agreements, usually ranging from 1.5% to 3% per transaction. In contrast, ACH transfers, which facilitate direct bank-to-bank transfers, generally have a flat fee structure or significantly lower percentage fees. This makes ACH a more economical choice for businesses handling larger transactions, allowing them to save on costs while ensuring the seamless movement of funds.

Payment links, while convenient for collecting payments, do not specifically influence the cost structure compared to credit cards or ACH transactions. Wallet payments, like those from mobile wallets, may carry their own processing fees, but they are similarly affected by the underlying credit card or bank transfer costs involved. Thus, both payment links and wallet payments do not directly address the cost advantages seen with ACH transactions for larger amounts.