ACH fees - how much does ACH cost?
Last editedJun 20232 min read
The cost of accepting ACH payments varies depending on a number of factors.
ACH Fees
The total cost associated with accepting ACH payments varies depending on a number of factors. Regardless, ACH pricing is often much cheaper than the fees associated with accepting card payments.
One of the biggest influences on the cost of accepting ACH payments is the volume of transactions your business intends to process. Companies with larger transaction volumes tend to pay less per transaction.
Looking for an easy & affordable way to collect ACH payments?
GoCardless saves merchants time, money & stress collecting ACH payments.
The costs associated with ACH processing are not set by NACHA, but by the individual organisations making the transactions. As a result, fees vary in both amount and method of calculation.
Some financial institutions will operate on a flat fee basis - these flat fees generally fall between $0.20 to $1.50 per transaction. Others prefer a percentage-based fee, typically between 0.5% and 1.5% of the transaction amount.
With such variations in fees and the way they are calculated, it is important for business owners to understand their own business requirements to secure the best deal with the right provider. When accessing ACH indirectly through a TPPP, a number of types of fees may be involved. Merchant Maverick suggests typical fees include:
| Type of fee | Typical cost |
|---|---|
| Flat fee (per transaction) | $0.20 - $1.50 |
| Percentage fee (per transaction) | 0.5% - 1.5% |
| Monthly fee | $5 - $30 |
| Batch fee (per batch) | << $1 |
| ACH return fee (per return) | $2 - $5 |
| ACH reversal / chargeback fee (per instance) | $5 - $25 |
Some providers may charge any number of additional (and potentially hidden) fees. Before choosing a TPPP for your business, always read their terms and conditions thoroughly, and discuss with them if necessary, to ensure you are aware of all fees you may be charged.
For larger businesses that are capable of accessing ACH, fees are likely to be lower.
How to collect ACH Debit payments with GoCardless
1.
Create your free GoCardless account, access your user-friendly payments dashboard & connect your accounting software (if you use one).
2.
Easily set up & schedule ACH Debit payments via payment pages on your website checkout or secure payment links.
3.
From now on you'll get paid on time, every time, as GoCardless automatically collects payment on the scheduled date. Simple.
ACH vs Card Payments
Accepting card payments from international customers can be an expensive business. How expensive is usually unclear as fees vary from one card provider to another.
Accepting an international card payment will typically cost between 1.5% and 3.5% per transaction in 'merchant processing fees' (depending on the specific card). In addition, you will also be charged further fees:
a transaction fee of 1% - 3%
FX markup fee of 1% - 3%
an authorisation fee of 1p - 3p
a merchant service fee of 0.25% - 0.35%
Therefore, accepting international card payments can cost anywhere between 2.25% + 1p and 9.85% + 3p.
This is relatively expensive and lacks pricing transparency. Bear in mind that there will be other flat fees on top such as PCI fees and chargeback fees.
GoCardless, by contrast, charges a simple fee for international transactions, such as ACH. See full details here.
Accepting a £500 international payment via a card would cost as much as £49.28, but with GoCardless, you would pay significantly less.
Additionally, with GoCardless there is no requirement to open a US or foreign currency account if you don't already have one, as your foreign currency funds can be automatically converted to Sterling and deposited in your UK bank account.
Read more about international payment fee comparisons or learn about cross-border payments with GoCardless.
