Bank transfer is cheaper. Here is what it costs you that a card does not

We tell people to take the bank transfer, because on a large invoice it costs $5 instead of $145. That advice is incomplete unless it comes with the list of what you are trading away. Here it is.

It takes four business days

A card is instant. A bank debit settles in four business days as standard. There is a two-day option at 1.2% instead of 0.8% — but 1.2% has no ceiling, so on anything above roughly $420 the faster option costs more than the money is worth waiting for.

Plan around it rather than fighting it. Four days is fine for a job you invoiced on completion. It is not fine if you are covering payroll on Friday with money invoiced on Wednesday.

It can fail after it looked paid

This is the one that catches people. A bank debit can show up in your balance and then be reversed: insufficient funds, a closed account, a customer who told their bank to block debits. The money is pulled back and a $4 failure fee is charged on top.

Practical consequence: do not treat a bank payment as cleared on day one. If you are releasing goods, scheduling work, or paying a subcontractor out of that money, wait until it has actually settled. The card habit of "paid means paid" does not transfer.

Disputes are final

A card dispute can be contested. You submit evidence, and sometimes you win.

A bank debit dispute cannot be appealed. A consumer has 60 days to dispute; a business account has two business days. Whatever the bank decides is the end of it, and you are left resolving it directly with the customer. A dispute also invalidates the authorization, so you cannot simply charge them again — you have to sort it out and collect a fresh one.

That is not a reason to avoid the rail. It is a reason to use it with customers you know, and to keep the paper trail you would want anyway.

Your customer has to authorize it

They sign in to their bank once, or enter the account details and verify them, and approve the debit. It is one extra screen and it happens once per customer.

Most people do it without comment. A few will not, especially a first-time customer who has no reason to trust you yet. Do not make it the only option.

A dispute costs $15, and verification can cost $1.50

Two smaller numbers worth knowing. A disputed bank payment carries a $15 fee regardless of outcome. Instant bank-account verification costs $1.50 per account; the alternative — small test deposits the customer confirms — is free but takes a few days.

For a first invoice to a new customer, the free route is usually fine. For a customer you are about to do $20,000 of work with, $1.50 to know the account is real on day one is not a decision worth thinking about.

The summary we would actually give

Small invoice, new customer: card. Large invoice, known customer: transfer. Both on every invoice, and the customer picks.

Figures are the processor's published US rates, read 23 September 2026.