ACH (Automated Clearing House) transfers are one of the most common ways to send payments online in the U.S. — you may also know them as direct deposit, direct pay, or electronic check.
With Melio, you can pay your vendors by ACH bank transfer regardless of whether you pay using a bank account or card. ACH payments take up to 3 business days to deliver and are trackable every step of the way. Need it faster? There's also an option for same-day ACH and instant ACH. Learn more about delivery times and eligibility.
This guide walks you through how to schedule an ACH bank transfer payment to a vendor.
Creating your ACH payment
1- In your Pay dashboard, select +New Payment to create a new payment.
Alternatively, you can create a new bill by selecting the Create a bill button under the Bills tab.
From there, you can create a new bill by filling in the bill details page. By selecting Continue to pay, you will proceed to the Pay screen.
2- In the Pay screen, begin adding your payment information under Payment details.
Adding vendor information
3- Add the Vendor business name. Start typing the vendor's business name in the search field:
- For existing vendors: Select the vendor from the dropdown list that appears as you type.
- For new vendors: Type the full business name and select +Add new vendor to create a new vendor profile.
- You will then be prompted to add vendor business details, address details, and delivery method information. Once done, select Save.
4- Enter the payment amount.
5- Select the payment frequency. You can choose between a one-time payment or a recurring payment.
Adding invoice details (optional)
6- To include an invoice with your payment, select Add bill details.
This opens the bill details page, where you can:
- Click Select or drop file on the left to upload your invoice image or file from your device. The invoice will be uploaded and scanned for information to add to the payment.
- Review the automatically scanned details and make any necessary edits.
- Select Continue to pay once all details are correct. This will return you to the Pay page.
Melio accepts PDF, JPEG, JPG, and PNG files up to 10MB. Upload one invoice per file. The system will scan your invoice and autofill payment details, but always review for accuracy. Use Replace to upload a different file or Cancel to remove it entirely.
Selecting payment and delivery methods
7- Choose how you want to pay by selecting either Bank account or Card and using the dropdown menu to select your preferred payment method.
Paying using a bank account:
- Check next to Bank account.
- Use the dropdown menu to select the bank account you want to pay with.
- You can add a new bank account by selecting + Add account. When adding a new bank account, you can add it instantly or manually using microdeposits.
Paying using a card:
- Check next to Card.
- Use the dropdown menu to select the card you want to pay with.
- You can add a new card by selecting + Add card. Learn how to connect a new card in this step-by-step guide. Check out this guide to see which cards are supported.
8- Select how the vendor will receive payment. To pay a vendor by ACH transfer, you need to select this as the delivery method. See below for more information.
For existing vendors:
- Use the dropdown menu to choose ACH transfer from the saved delivery methods.
- To add an ACH transfer or edit ACH transfer details, select Manage delivery methods. This will open the Delivery Methods window, where you can add or edit an ACH transfer method.
- To add an ACH transfer to the delivery methods, select +Add another. Next, follow the prompts to fill in the ACH transfer details. Select Save when done.
- To edit the ACH transfer details, select Edit. Follow the prompts to fill in the edited ACH transfer details. Select Save when done.
For new vendors:
If you have added a new vendor but haven't added the ACH transfer details yet, follow these steps.
- Select the Add delivery method box. This will open the Delivery methods window.
- Select +Add details next to ACH transfer. Next, follow the prompts to fill in the ACH transfer details.
Scheduling and finalizing
9- Choose when funds will be delivered to your vendor. You can select from preset delivery dates or choose a custom date. After selecting a date, you'll see when funds will be debited, the delivery timeline, and when your vendor will receive payment.
- To select a custom date, select the Custom date option, then select the calendar icon to choose your preferred delivery date. Select Apply when done.
- When selecting a delivery date in the calendar popup, federal holiday dates will be blocked. When you try to select the date, it'll display a Federal Bank Holiday.
The delivery speed depends on multiple factors: selected payment method, amount, delivery method, day, and time when you make the payment. Learn more about typical delivery timelines in this guide.
10- Add a memo to your payment (optional). This memo will appear on printed checks and in the email notification your vendor receives. This will help the vendor understand the purpose of the payment. When delivered via ACH bank transfer, it will show if your vendor's bank enables memos.
11- If you haven't added a vendor email yet, you'll be prompted to add one so your vendor can receive a payment summary.
12- Review all payment details carefully to ensure accuracy.
13- Select Confirm and pay to schedule your payment. For payments to new vendors, you will be prompted to add additional details about the vendor.
14- Your payment is now successfully scheduled! From the success screen, you can do the following:
- You can download or print your payment summary.
- Select Go to dashboard to return to your main account view.
That's it! You've successfully created and scheduled a vendor payment. You can find your new payment in the Payments tab. Your payment details are saved, and funds will be delivered according to your selected timeline and method.