Mallow Help Center
Invoicing and Payments

ACH bank transfer payments

Bank transfers (ACH for US, EFT for Canada) let your clients pay invoices directly from their bank account with a flat $0.20 fee per transaction—significantly cheaper than card payments. This article explains the bank transfer payment workflow and what to expect after your client submits payment.

How bank transfer payments work

When a client chooses to pay by bank transfer, they enter their bank account details and authorize the payment. Unlike card payments, which authorize and settle almost instantly, bank transfers take time to process:

  1. Submission: The client submits their bank account details and authorizes the payment. The invoice status changes to ACH Pending.

  2. Processing: The bank transfer is sent through the ACH or EFT network. This typically takes 2-5 business days (may take longer for new or unfamiliar bank accounts).

  3. Settlement: Once the transfer completes successfully, the payment is settled and the invoice status changes to Paid.

What ACH Pending means

ACH Pending is a temporary status that means the client has submitted their bank transfer, but settlement is still processing. During this time:

  • The client sees a receipt confirmation instead of the payment form.

  • You cannot mark the invoice unpaid or request another payment method while the transfer is in progress.

  • The payment will complete automatically once the bank transfer settles.

This is normal behavior for bank transfers—no action is needed while the payment processes.

Email notifications

Both you and your client receive email notifications at key points in the bank transfer workflow:

When payment is submitted

When the client authorizes a bank transfer, Mallow sends a payment-submitted notification to:

  • The client: Confirms their payment was submitted and is processing.

  • All company users: Notifies your team that a payment is pending settlement.

When settlement completes

Once the bank transfer successfully settles, Mallow sends a settlement-complete notification to:

  • The client: Confirms their payment has cleared.

  • All company users: Confirms the payment has settled and funds will be disbursed.

If you have multiple team members with accounts on your Mallow company, all of them receive these notifications.

Bank transfers from stored payment methods

When a bank transfer is initiated from a stored payment method, Mallow uses the same vault-specific email templates as other merchant-initiated vault charges. Company users on your account also receive a payment-success email once the transfer settles.

If a bank transfer fails

Bank transfers can fail if the bank account details are incorrect, the account is closed, or there are insufficient funds. Failed payments appear in Merchant Hub > Payments. On mobile, reach Merchant Hub through the Pages drawer in the bottom footer. The Payments table reflows into stacked cards on small screens.

For help resolving failed bank transfers, see Recover failed or incomplete payments.

Bank transfer limits

ACH bank transfers are domestic only:

  • ACH is available for US-based bank accounts on USD invoices.

Cross-border bank transfers are not supported. If your client's bank account is in a different country than the invoice currency's domestic rail, they must pay by card instead.

If CAD is enabled on your company, bank transfer (ACH) is not available on USD invoices. Switch the invoice currency to CAD or use Card. USD-only companies can still offer Bank Transfer on USD invoices. See Invoice in USD and CAD.

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