Pay by ACH vs. Instant Payments: Which One Saves You More Time & Money?

Are you still waiting days for payments to clear and wondering if there’s a better way? If you’re running a small business or managing finances, you’ve probably asked yourself this before. Between juggling bills, vendor payments, approval workflows, and cash flow forecasting, the way you move money matters more than ever.

So here’s the big question: should you choose to pay by ACH, or switch to instant payments that land in seconds?

Let’s break it down and talk about what really saves time, cuts costs, and gives your team more control.

First, let’s talk about paying by ACH

ACH, or Automated Clearing House, has been the go-to for business payments for decades. It works in batches, meaning payments are grouped together and processed a few times a day. That’s why you often wait one to three business days (sometimes more) for funds to move from point A to point B.

Paying by ACH is definitely inexpensive, and that’s part of its appeal. But here’s the catch: it’s slow, and that delay can create bigger problems than you’d think.

Over 8 billion B2B ACH payments with a value of $20.5 trillion were made in 2023. That’s a huge number, but it doesn’t mean it’s the most efficient way to pay today. Think about how often you’ve waited for a vendor to confirm receipt of payment, only to hear, “We haven’t received it yet.” Or how many times you’ve missed a batch window and had to wait until the next business day?

When every day counts, ACH can slow you down more than it helps you save.

Instant payments, the real-time solution

Instant payments let you send funds and have them land in the recipient’s account within seconds. We’re not talking about hours. We’re talking literal seconds.

This technology is made possible by the RTP Network® (launched by The Clearing House) and FedNow Service®, the Federal Reserve’s new real-time payments rail. And it’s growing fast. As of late last year, over 1000 banks and financial institutions were already supporting real-time payments. That number is only going up.

What does this mean for you? It means you can approve a vendor payment at 3:15 p.m., and they’ll have it in their account by 3:15 p.m. You don’t have to worry about cutoff times, weekends, or bank holidays. It’s a game-changer for accounts payable teams.

The real cost of “cheap” ACH

Sure, paying by ACH is low-cost. Some banks even offer it for free. But when you look at the full picture, the real cost of ACH isn’t the transaction fee, it’s the time and energy it eats up.

Here’s what often gets overlooked:

• Chasing delayed payments: Your team wastes time following up on ACH transfers that haven’t cleared.
• Vendor frustration: Delayed payments can hurt your relationships and even your terms.
• Forecasting headaches: When funds don’t move in real time, your cash flow models are harder to trust.
• Missed cutoffs: One missed batch window and you’re dealing with extra emails, late fees, and stress.

You might not see these costs on your bank statement, but they’re very real. And they add up quickly.

How Forwardly makes instant payments effortless

At Forwardly, we’ve designed instant business payments with small businesses and finance teams in mind. Here’s how we help:

• Same-day ACH transfers: Yes, we offer ACH too incase instant bank transfer are not supported by your bank. And unlike other payment solutions, we don’t charge monthly fees or processing costs.
• Instant payments in 60 seconds or less: Powered by both RTP and FedNow rails, Forwardly lets you send and receive money instantly, 24/7, even on weekends.
• No need to pre-fund: Forget the days of topping up wallets or third-party accounts. Payments come directly from your linked business bank account.
• Custom approval workflows: You can set thresholds, assign roles, and ensure everything gets approved before a dollar leaves your account.
• Real-time notifications: Both you and your vendor know the moment a payment is complete. Transparency = less back-and-forth.
• Built for accounting integrations: Forwardly syncs with QuickBooks Online, Xero, FreshBooks and Zoho Books. So you’re not stuck toggling between tabs or manually updating records all powered by Forwardly Business Network.

Side-by-side: ACH vs. instant payments

Here’s a quick look at how the two really compare:

 

Final verdict: if you value time, go instant

ACH still has its place for recurring low-priority payments or non-urgent payroll. But when you’re trying to stay lean, agile, and competitive, instant payments offer real ROI.

You’re not just saving time. You’re protecting your vendor relationships, improving your cash flow visibility, and gaining back hours you used to spend chasing transactions.

As a business owner, that’s the kind of efficiency that turns heads.

Try forwardly and experience the difference

You shouldn’t have to wait three days to pay a bill. Or get paid.

Forwardly helps small businesses and accountants move money in real-time, with total control and zero monthly fees. Whether you’re paying vendors or collecting payments from clients, we make it cost-effective, secure, and effortless.

Create your free account and try instant business payments today.