ACH Payments for Hospitality

A Smarter, Faster Way to Pay Your Hotel’s Suppliers

Tired of chasing down paper checks, dealing with payment delays, and fielding supplier complaints?  There’s a better way.  ACH payments – also known as Automated Clearing House payments – let hotels and resorts pay suppliers electronically, securely, and on time.  And when ACH is embedded directly into your hospitality financial management system (FMS), payments become seamless.

What Are ACH Payments and How Do They Work?

ACH payments transfer funds electronically from your hotel’s bank account to your suppliers’ accounts using the U.S. banking network.  No stamps, no envelopes, no trips to the post office.

Here’s how it works:

1. You approve an invoice in your financial management system.
2. The payment is processed electronically via ACH.
3. Funds are deposited directly into the supplier’s bank account.

With DP Pay, this process happens inside the same platform you use for accounting and purchasing – no need to log in to separate systems or manually key in payment information.

Common Challenges Hotels Face with Supplier Payments

Paying suppliers with checks is costly, time-consuming, and risky.  Many hotels struggle with:

• Manual processes that require cutting and mailing checks
• Payment delays that lead to late fees and strained vendor relationships
• Reconciliation headaches from disjointed systems
• High risk of fraud

Embedded ACH Payments – Directly Within Your FMS

With DP Pay, ACH payments are fully integrated into your financial workflow.  There’s no need to export data, no switching between systems, and no duplicate entry.  Payments are authorized, sent, and recorded – all in one place.  Hotels can also pay suppliers via card or check, if necessary. 

Benefits of ACH Payments for Hoteliers

• Save time and reduce errors by eliminating check runs and manual processing
• Improve visibility and control with payment tracking and audit trails
• Boost security by reducing check fraud and exposure to phishing attacks
• Cut costs by avoiding postage, printing, and bank fees associated with checks
• Pay on time, every time – strengthening vendor relationships and avoiding late fees

Benefits of ACH Payments for Suppliers

• Faster access to funds than waiting for a check to arrive and clear
• Improved cash flow forecasting thanks to predictable deposit timing
• Fewer disputes and calls about payment status
• Stronger relationships with hotels that pay reliably and on time

Let’s Talk

Want to streamline payments and improve supplier satisfaction?  Schedule a brief demo to see how ACH payments through DP Pay can transform your back office.

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Frequently Asked Questions (FAQs)

ACH (Automated Clearing House) payments are a type of electronic bank-to-bank transfer. In the hospitality industry, hotels use ACH to pay suppliers and vendors directly from their bank accounts – without printing and mailing checks. Once an invoice is approved, an ACH transfer is initiated from the hotel’s bank account to the supplier’s account through the secure U.S. banking network. The funds typically arrive within one to two business days and are deposited automatically – no checks, no postage, and no delays. Paper checks are slow, expensive, and vulnerable to fraud. They also create operational inefficiencies – requiring printing, signing, mailing, and manual reconciliation. Electronic payments like ACH streamline the process and reduce these risks. Hotels and resorts that pay suppliers via ACH benefit from:

• – Faster and more secure payments
• – Lower processing costs compared to checks
• – Reduced manual work and errors
• – Easier payment tracking and reconciliation
• – Stronger supplier relationships through on-time payments

Suppliers that receive payment via ACH benefit from:

• – Faster access to funds
• – Predictable deposit timing
• – Fewer payment disputes
• – Reduced risk of lost or stolen checks
• – Improved cash flow planning

Common challenges with supplier payments include:

• – Labor-intensive manual processes
• – Payment delays that result in late fees
• – Difficulty reconciling payments across multiple systems
• – Increased fraud risk from mailing checks or sharing bank data via email

When ACH payment capabilities are built into a hotel’s financial management system (FMS), approvals, payments, and reconciliation happen in one place. This eliminates duplicate entry, speeds up the payment cycle, and gives hospitality finance teams better visibility and control. Yes. ACH payments are processed through a secure, regulated network. They reduce exposure to check fraud and are safer than emailing or faxing sensitive banking information. Built-in controls and audit trails further enhance security. Hotels and resorts can adopt ACH by working with a financial management platform or payment solution that supports electronic payments. Look for one that offers integrated workflows, strong security controls, and reporting features to simplify the transition from checks to ACH.