Square Invoices and ACH Processing
With ACH processing, you can take advantage of a lower processing cost and a higher profit margin for your business. The ACH processing fee is only 1%, with a minimum fee of $1 and no additional processing costs. For example, if your invoice is for $300, the processing fee will be 1% or $3.
Upgrade to Invoices Plus and get a $10 fee cap per ACH transaction. Fees are capped per payment request for progress invoices. Get started with a 30-day free trial of Invoices Plus.
Send an Invoice
Click Payments > Invoices in your online Square Dashboard.
Click Create invoice.
You will see the New invoice screen.
Enter the customer’s name or email address next to Customer, and fill in the Invoice details.
Within Payment options you will see Payment method.
Select the methods you will accept from your customer. Select the box next to ACH bank transfer to allow your customer to pay via ACH bank transfer.
Once done, select Send, and the invoice will be sent to the customer’s email.
ACH transfers typically take 1-5 business days to complete. When the buyer initiates a payment, the invoice will go into the "Payment Pending" state. After five days, the payment will either succeed or fail and each party will receive proper notifications.
Learn more about Square Invoices Plus and keep the same standard ACH processing rate of 1% per ACH transaction by signing up.
Allow Customers to Save Bank Account Information for Recurring Series
To allow your customers to save their bank account for a recurring series and enable auto charge, you will need to check the Allow automatic payments with card or bank on file option when creating a recurring series.
Once the customer opens the invoice, they can select Pay by bank transfer.
The customer will then go through a flow with Plaid, our bank verification partner to authorize their bank account.
Through the Plaid flow, the customer can select their bank and enter their credentials. Once complete, there will see a Success screen.
The customer can then check the box for Save my bank on file with [business].
Once complete, the customer can select Confirm and pay. Future invoices in the series will be charged to the bank on file.
Allow Customers to Remove or Update Saved Card on File or Bank on File
To allow your customers to update their Card on File or Bank on File for a recurring series or remove their card or bank information, you need to set up the recurring series as delayed charge, meaning their payment is due later than the invoice date. On each invoice date, your customers with Card on File or Bank on File enrolled will receive an email with the option to Make early payment or Update payment method.
Have you customer open their email and follow these steps:
Your customer should click Update payment method in that email to go to the Pay Page, then select either Update card, Update bank transfer (ACH), or Remove card/ bank on file.
If the customer selects to update their card or bank, they can enter their updated card or bank information.
The customer will then check the box for Save my card or bank on file with [business].
Once complete, your customer can Confirm. Future invoices in the series will be charged to the updated card or bank on file.