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At First ACH we believe in our mission to deliver to you the best value in ACH payment solutions in the electronic payments industry. Compare our prices for yourself…
Scenario 1: First ACH - Small Business Plan A
(Assuming 10 transactions per month @ $100 per transaction) |
| |
First ACH |
PaySimple |
Authorize.net |
PayPal |
Amazon |
Setup Fee |
9.99 |
199.00 |
299.99 |
0.00 |
0.00 |
Monthly Fee |
9.99 |
19.95 |
20.00 |
0.00 |
0.00 |
Free Transactions |
10 |
0 |
0 |
0 |
0 |
Cost per Transaction |
0.39 |
0.55 |
0.30 |
0.30 |
0.05 |
Transaction % Fee |
0% |
0% |
1.75% |
2.90% |
2.00% |
Monthly Cost * |
9.99 |
25.45 |
40.50 |
32.00 |
20.50 |
Why pay more? >>> |
+155% |
+305% |
+220% |
+105% |
|
Scenario 2: First ACH - Corporate Plan A
(Assuming 200 transaction per month @ $100 per transaction)
|
| |
First ACH |
PaySimple |
Authorize.net |
PayPal |
Amazon |
Setup Fee |
49.99 |
199.00 |
299.99 |
0.00 |
0.00 |
Monthly Fee |
49.99 |
19.95 |
20.00 |
0.00 |
0.00 |
Free Transactions |
200 |
0 |
0 |
0 |
0 |
Cost per Transaction |
0.25 |
0.55 |
0.30 |
0.30 |
0.05 |
Transaction % Fee |
0% |
0% |
1.75% |
2.90% |
2.00% |
Monthly Cost * |
49.99 |
129.95 |
430.00 |
640.00 |
410.00 |
Why pay more? >>> |
+160% |
+760% |
+1,180% |
+720% |
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*Savings based upon published rates as of 11/15/07.
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Credit Cards vs. First ACH – Price Comparison
Compare the cost of processing a credit card transaction vs. the lower cost of an ACH transaction through First ACH. Consider the example of a single transaction…
| |
Credit Card |
vs. |
First ACH |
Number of Transactions |
1 |
|
1 |
Transaction Amount |
$100.00 |
|
$100.00 |
Discount Rate |
2.90% |
|
None |
Transaction Fee |
$0.20 |
|
$0.29 |
Cost = |
$3.10 |
or |
29 cents |
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Note that the credit card fees listed above are standard fees and the rates listed are typical for the industry. Even more importantly, note the difference in cost associated with the two payment types. Though the typical credit card transaction for $100.00 costs around $3.10, the ACH transaction through First ACH cost only .29 cents.
How is that so? Well, the bank takes a fee based on the percentage of all sales transactions. This is called a discount rate. A typical discount rate of 2.9% applied to a transaction of 100.00 will cost a merchant $2.90. An additional charge for the transaction fee would also be applied. The transaction fee is a per item fee charged for each transaction between your terminal or software and the processors network. A typical transaction fee of .20 cents would then be added to the $2.90 charge for a new total of $3.10.
Now, imagine in a month you accept 99 more transactions for the same amount totaling $10,000.00 altogether. The same fees will apply to each one of those transactions. Your new grand total would be $310.00.
How much would the transaction costs be for the same amount and number of transactions if processing through First ACH and on our small business B plan?
Nothing. That particular plan allows the first 100 transactions for free. However, there is the standard monthly fee for First ACH. In this case it is $29.99 for this particular plan. Keep in mind that for use of credit cards, you are also paying a comparable monthly fee. So, if you include that same amount in the price, your actual payout for credit card would be around $340.00 as opposed to the much lower First ACH total. How much is that? $29.99. Big difference.
Imagine this over a year. Assume that we continue to process 100 transactions a month for $100.00 each, for 12 months. The credit card fees that you would pay would then total $3720.00, plus monthly fees for a grand total of $4080.00 in that year. Now, lets compare the same totals to what you would pay using First ACH. For the transactions, your total would be $0.00. Remember, the first 100 transactions are free every month. However, one will have to pay the monthly fee of 29.99 for each month. Your grand total would be $359.88.
Would you rather pay $4080.00 or $359.88? It's your choice.
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