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Alcohol Payments

EFT vs ACH Payments: What You Need to Know

When looking at EFT vs ACH Payments, both are fast, convenient, and secure forms of electronic payment. See what sets them apart from each other.

Technology advancement has seen more businesses go cashless. Gone are the days when transactions involved tons of paperwork. The more efficient payment platforms like Electronic Funds Transfer (EFT) and Automated Clearing House (ACH) now help organizations make faster, cost-effective, and convenient payments. 

This is good news for multi-billion-dollar alcohol businesses. Electronic transactions help save time and money, while also making sure you stay compliant with state laws. 

EFT and ACH are both automated, electronic payment methods. They are less costly, more secure, and more convenient. But, EFT vs ACH? Which one is better for your alcohol business? 

Let's begin by showing you the benefits of using electronic payments for your alcohol business. 

Why Should You Use Electronic Payment (E-Payment) for Alcohol?

Direct Store Delivery (DSD) has become highly competitive, pushing retailers and distributors to look for more streamlined processes for payments. As a result, alcohol distributors and retailers turn to electronic payments for their efficiency, cost-effectiveness, and security. Learn more about the benefits of using EFT for alcohol payments

If you choose an electronic payment method for your alcohol business, you stand to gain more. Here is how:

Security and Compliance

With an electronic payment method, your transactions can be paperless and cashless. You no longer need to carry large amounts of cash, money orders, or checks. This makes your transactions more secure, more convenient, and much faster.

Electronic payments also minimize the risk of fraud. Parties involved are aware the transactions are subject to third-party validation and verification. And, all invoices are verified and validated before approving payments. 

E-payment processes make it easy for you to comply with state and federal regulations, and you reduce the risk of losing your alcohol license. 

Convenience and Accuracy

With electronic payment, you can not only make or receive payments fast, but they’re also more accurate and convenient. 

As a retailer, you can pay your distributors faster and leave them with more time for more deliveries. Easily authorize payments by signing the invoice for the product when it is received.

Changing your e-payment credentials is also easier. You can share them with a trusted assistant to authorize payments. And, when your assistant no longer needs to make payments on your behalf, you can change the credentials back.

It’s also easier and quicker to track your e-payment transactions so you know how you are circulating your money. This is an excellent way to tell if you are using money the right way and show you your pending bills. 

Essentially, it helps you monitor your funds transfer more effectively. And, your transactions and records are also more accurate since you eliminate the need for manual records.

What is EFT?

What are EFT payments? 

EFT payment is a digital process involving transferring cash from one bank to another through the Federal Reserve clearing system. The process is fully digitized, removing the need for paper documents. This allows you to transact without using cash, money orders, or checks and still meet the payment qualifications.

EFT payments account for about 30% of transactions undertaken in North America today. It has become popular predominantly because of its simplicity, accuracy, and accessibility.

Once a distributor submits an invoice to the automated system, the validation process commences, guaranteeing compliance accuracy. After the invoice is validated, payment instructions are submitted through the Federal Reserve to be effected.

All payments are done in compliance with state regulations. After the payments, automatic reconciliation files are sent to retailers to help them update their books.

What is ACH?

All ACH transactions fall under EFT, but not all EFT payments are ACH. Automated Clearing House (ACH) is a network used by banks to move money electronically from one account to another –or one bank to another. ACH transactions are done over the ACH scheme and not through the cards network like Visa and Master cards. 

ACH transactions are made through either direct payments or direct deposits. They are perfect for transactions like payrolls, tax, and tax refunds. You may also use them to pay employee benefits, reimbursements, annuity and interest. 

ACH transactions involve transferring funds between banks. They may be helpful when making multiple transactions to several accounts in different banks. For instance, when paying your workers' salaries, you may need to transfer money to several banks. 

ACH is good for transactions that do not need quick cash transfers. When paying salaries to your alcohol business workers, you can initiate the payments for the cash to reflect in their accounts on a particular day. This may not work with distributors who may need money for more stock or to fast-track other deliveries.

EFT and ACH for Alcohol Payments

Although EFT and ACH are forms of electronic payments, they differ in several ways, as shown below:





Little verification as long as the transaction is initiated with the authorized credentials

Verification before and during funds transfer


Typically instantaneous

Funds are held for a day or two in the Automated Clearing House Network.


Electronic Funds Transfer Act regulates EFT transactions

The National Automated Clearing House Association (NACHA) voluntarily administers the operating rules to ensure compliance and good governance


Ideal for transferring funds from one bank to another

Ideal for connecting banks and streamlining transactions across different banks



Both EFT and ACH are cost-effective, fast, convenient and secure forms of electronic payment. They help you undertake paperless and cashless transactions. And, they can help you run your alcohol business more efficiently and securely.

EFT may be more helpful when you want to receive funds fast, since the cash for these transactions are not held for verification and validation. You may use it for your B2B transactions as both businesses appreciate the need for uninterrupted cash flow. 

ACH helps when making multiple transfers to different accounts in different banks. It may be appropriate for paying salaries, dividends, or employee benefits.

Are you in the alcohol business? Don't let manual payments, transaction tracking and management stress you. With iControl, you can handle all your transactions securely and effortlessly.

iControl is the only B2B solution that offers alcohol payments, accurate POS data, and scan-based trading in the Food and Beverage industry. Get a free demo of our results-driven software.   

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