If you have worked with American clients or platforms, you have probably encountered ACH payments. It’s the local, straightforward, and preferred payment option for many US clients, and significantly cheaper than an international wire. Think of it like making a GTB-to-Wema bank transfer. Unfortunately, unlike international wire transfers, ACH only works between US bank accounts, and you need a US address and a physical visit to open an account. This explains why many Nigerians end up with the more expensive, slower, and forced-conversion option at unfair rates (Wire transfer via SWIFT).
The good news is that this doesn’t have to be the case. Nigerians can now receive ACH payments without a traditional US bank account, a US address, or ever travelling to the United States. This article explains how it works, why it matters, and what to look for when setting it up.
Also read: Managing foreign currency earnings as a remote worker in Nigeria
ACH stands for Automated Clearing House. It is the electronic network that facilitates most transfers between US banks. It also supports direct deposits, payroll, bill payments, and a significant portion of business-to-contractor payments.
ACH transfers are typically free or very cheap for the sender, and are usually completed within a couple of days. They do not require a SWIFT code or any of the other details associated with international wires. It is simply a domestic bank transfer.
That simplicity is exactly why so many US clients and platforms prefer it. So, it hurts a lot that many Nigerian freelancers and remote workers trying to get paid by American businesses can’t use it.
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The advent of virtual US bank accounts has offered Nigerians great respite in managing international payments. It bypasses the hurdles that prevent Nigerians from using ACH by providing a US routing number and an account number. These details are issued to you through a fintech platform, without requiring US residency, a US address, or a Social Security Number.
When you share these details with a US client or platform, they make what appears to them to be a standard domestic ACH transfer. The money moves through the ACH network as it normally would, arrives in your virtual US account, and from there, you convert and withdraw to your Nigerian bank account.
Also read: Virtual US accounts explained: who they work for
Not every fintech platform that claims to offer dollar accounts actually supports ACH inflows properly. Here is a quick overview of the main options:
Managing USD payments is gradually becoming a walk in the park for Nigerian freelancers. And with platforms like Grey frontlining this transition, freelancers can now maximise their earnings and avoid the drama of wire transfers. Grey gives Nigerians USD accounts with real US banking details that support ACH transfers from US clients, employers, and platforms. You can open an account online without visiting the US. The transaction fees are low and transparent, and withdrawals to Nigerian bank accounts are processed quickly at competitive exchange rates. For seamless online purchases and subscriiptions, Grey virtual cards help you pay directly in USD to avoid conversion charges.
Sign up on Grey and download the app to open your account today.
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