Question 1

What is ACH processing and how does it differ from card processing?

Accepted Answer

ACH (Automated Clearing House) is the US electronic bank transfer network that moves funds directly between bank accounts — no card networks involved. When a customer provides their routing and account number (or you debit their account via an established authorization), the payment travels through the ACH network operated by NACHA. Key differences from card processing: (1) Cost — ACH fees are typically $0.25–$1.50 flat per transaction vs. 2-3% for cards, representing massive savings on high-value transactions, (2) Settlement — ACH settles in 1-3 business days vs. instant card authorization (though same-day ACH is available for a premium), (3) Chargeback equivalent — ACH has 'returns' rather than chargebacks, with different reason codes and timeframes, (4) Authentication — no CVV or 3DS; authorization is based on account ownership verification, and (5) Volume limits — ACH can handle transactions up to $1M+ vs. card transaction limits typically $50k–$100k.

Question 2

When should ecommerce merchants use ACH instead of card payments?

Accepted Answer

ACH is optimal in specific transaction scenarios: (1) High-value B2B transactions — a $50,000 B2B order paying via card costs $1,250-$1,500 in processing fees; via ACH, $0.50-$1.50. The savings are immediate and compelling, (2) Subscription billing for SaaS/software — monthly charges of $500-$5,000+ accumulate enormous card fees. ACH subscription reduces billing costs by 85-95%, (3) Wholesale orders — merchants who sell to retailers and process large orders regularly, (4) High-risk categories where card chargebacks are a problem — ACH returns are less frequent and harder for buyers to initiate than card chargebacks, and (5) Invoiced customers — B2B customers accustomed to paying by check are natural ACH candidates (ACH is effectively electronic check). GetPayment supports ACH as a payment option alongside cards, with smart checkout routing to suggest ACH for qualifying transaction types.

Question 3

What is the ACH return rate and how does it compare to card chargebacks?

Accepted Answer

ACH returns occur when a payment cannot be completed — insufficient funds (R01), account closed (R02), invalid routing/account number (R03), or authorization revoked (R07). NACHA's return rate threshold is 0.5% for unauthorized returns and 15% for overall returns (though best practice is far below these). Return rates differ significantly from card chargebacks: ACH returns generally occur within 2 business days (3 days for consumer accounts, 60 days for unauthorized claims on consumer accounts). The 60-day unauthorized return window is the key risk — unlike card chargebacks which typically occur within 60-120 days of the transaction, ACH unauthorized returns can arrive up to 60 days after the debit. Mitigation: verifiable authorization (written or electronic), clear description in the ACH transaction record, and instant bank verification before initiating debits.

Question 4

What is Same-Day ACH and when does it make sense?

Accepted Answer

Same-Day ACH (SDA) is a NACHA feature that processes ACH transactions within the same business day rather than the standard 1-3 day window. Same-Day ACH is available for transactions up to $1,000,000 and requires submission by specific daily cutoff times. Cost premium: $0.52 per transaction (NACHA fee) plus processor markup, compared to standard ACH which may have no per-transaction fee beyond a small flat amount. Same-Day ACH makes sense for: time-sensitive B2B payments, same-day payroll, urgent vendor payments, and consumer-facing payments where settlement timing matters for order fulfillment. For most subscription and recurring use cases, standard ACH is fine — the settlement delay is operationally acceptable and the cost savings are significant.

Question 5

How does instant bank verification work and why is it important?

Accepted Answer

Instant bank verification (IBV) — provided by services like Plaid, MX, or Yodlee — allows customers to link their bank account by logging into their bank through a secure OAuth flow, instead of manually entering routing and account numbers. IBV provides three benefits: (1) Accuracy — eliminates typos in routing/account numbers that cause R03 returns, (2) Verification — confirms the customer actually owns the bank account (reducing R07 unauthorized returns), and (3) Balance check — some IBV providers offer real-time balance visibility, allowing you to decline ACH initiations where the account has insufficient funds before creating an R01 return. IBV conversion is higher than manual entry (customers trust the bank login flow more than sharing account numbers directly). GetPayment integrates with major IBV providers for optimized ACH onboarding.

ACH Payment Processing: $0.50 Flat Fees, $1M+ Transactions, and Same-Day Settlement

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Full-Featured ACH Payment Platform

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Smart Retry Logic

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Batch & Micro-Deposit Verification

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Same-Day ACH: Speed When You Need It

Smart Retry Logic for ACH Returns

Instant Bank Verification: Eliminate Typos and Fraud

ACH Payments FAQ

What is ACH processing and how does it differ from card processing?

When should ecommerce merchants use ACH instead of card payments?

What is the ACH return rate and how does it compare to card chargebacks?

What is Same-Day ACH and when does it make sense?

How does instant bank verification work and why is it important?

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