Which type of payment typically does not attract a fee?

ACH payments, or Automated Clearing House payments, are often the type of payment that does not attract a fee. This is primarily because they facilitate direct bank-to-bank transfers within the United States, allowing for cost-effective processing of transactions, especially for direct deposits and recurring payments like payroll or utility bills.

Banks and financial institutions commonly offer ACH services to their customers at little to no cost, making it a more appealing option for both consumers and businesses. The low-cost nature of ACH transactions is a significant advantage compared to other payment types, which often incur various fees associated with their processing, such as international transaction fees for international payments, transaction fees for credit card payments, and transfer fees for wire transfers. This makes ACH payments a preferred choice for domestic transactions when minimizing costs is a priority.