Reduced churn: Credit cards have a shelf life of 3 years, whereas bank accounts can be used for an average of 14 years.You just have to enter the online banking credentials. But in ACH, you don’t have to go through all those troubles. If you use the latter, there may be instances where you have to manually enter the credit card number along with the expiration date and card verification code. Better user experience: You get a ‘Pay with your bank’ option in ACH credit gateway, which is easier to use than credit cards.Apart from a significantly lower fee as compared to credit cards and wire transfers, ACH payment also provides other benefits for businesses: High-ticket surcharge: If you purchase anything above $5,000, ACH network charges a surcharge amount of +0.25% of the base amountĪCH payment volume grew nearly 74% in 2021 when many businesses adopted this method for payroll processing, tax payment, and more.ACH chargeback fee: Whenever a customer raises any dispute, there is a chargeback fee associated with it.ACH return fee: When a transferred amount is returned, your service provider will charge a return fee that ranges from $2.00 to $5.00 per return.Monthly fee: Your service provider may charge this amount for using the ACH network, which ranges from $5.00 to $30.00 per month.Setup fee: A one-time fee charged by your service provider.Therefore, credit transactions are considered riskier for any merchant provider.ĪCH fees may include the following fees as well: A credit fee costs more than a debit fee since the dollar amounts for ACH credit transactions are higher. For ACH credit, the fee may range from $0.20 to $1.50 per transaction. This fee primarily covers the cost required to send the amount from the ACH network into the recipient’s bank account. Your service provider collects this amount. This mainly includes-monthly statements, monitoring transactions, and compliance fees. The account fee is a charge that covers the services offered to maintain your account in the system.

If your business is categorized into the ‘higher risk’ category, then the amount will be higher. Let’s check out the various aspects that determine the amount you need to pay as ACH fees:Ī typical flat fee charge for ACH transfers ranges from $0.20 to $1.50 per transaction, while percentages can go up to 1.5% from 0.5%. The total cost associated with a general transaction completed via ACH payments depends upon several factors. In general, when you compare the cost of ACH payments, you will find that it is much lower than other payment methods.

Ach credit vs debit