ACH processing fees
Understanding The ACH cost advantage
Pricing for ACH Processing is usually a lot more affordable than credit card processing.
When we process your ACH/eCheck payments, we don’t have to shell out a portion of your fees to credit card companies like Visa®, MasterCard®, Discover® or American Express®. This allows us to pass the savings on to you.
Ok, so it’s cheaper than credit card processing. What can I expect to pay when it comes to my ACH payment processing cost?
When you sign up for ACH processing, you’ll notice a few friendly fees that make your affordable eCheck payments possible.
We’re not into fine print, so here they are in all their glory:
- Account Fee – Your account fee covers a myriad of different services we provide to maintain your account, including monthly statement distribution, rock star customer service, maintaining our processing systems, monitoring your transactions for fraud, complying with IRS reporting requirements, and more.
- Debit fee – A debit fee is the transaction fee associated with each individual ACH debit, or payment from your customer to you. It covers the cost of processing the transaction and ensuring the funds are transported from the customer’s bank account to your bank account through the ACH network. A debit fee typically ranges from $0.15 to $0.95 depending on your business model and the perceived risk of each individual transaction.
- Credit Fee – A credit fee is the transaction fee associated with each individual ACH credit, or payment from you to a vendor, employee or other third party. It covers the cost of processing the transaction and ensuring the funds are transported from your bank account to their bank account through the ACH network. A credit fee typically ranges from $0.15 to $0.95 depending on the relationship with the customer and perceived risk of their average transaction. Credit fees can be higher than debit fees because they are often associated with larger dollar amounts, which in turn have higher risk to the merchant services provider.
- Discount Fee - A discount fee is kind of a misnomer, because it’s not really a discount at all! Instead, it’s a percentage-based fee that’s only applied to certain transactions. In order to compensate for the heightened risk associated with high-risk industries and transactions, we charge a discount fee in the form of a percentage of the total transaction. Since we’re legally responsible for each ACH/eCheck transaction and can be forced to shell out if it’s fraudulent, the discount fee is a way of mitigating risks with larger, high-risk processing.
We hope this guide to pricing for ACH processing has clarified the fees for you!