ACH Payment Overview and Best Practices
Why Choose ACH?
ACH (Automated Clearing House) is a cost-effective alternative to credit card payments, offering direct debit from customers’ bank accounts. While it may not be ideal for all businesses, it can be highly advantageous in specific scenarios:
Although bank debit cards draw money directly from a bank account, they are processed via card networks (like Visa or Mastercard), not as ACH transfers. As a result, when a recurring membership payment is made using a bank debit card, it incurs credit card processing fees rather than the lower ACH rates.
Key Considerations:
Saving on Fees: ACH fees are significantly lower than credit card fees, potentially saving 2% of your total revenue.
Recurring Payments: ACH works best for businesses relying on recurring transactions.
Access to Funds: ACH transactions typically take longer to process (up to several days) compared to credit cards.
Additionally, credit card fees are generally higher, comprising a percentage of the transaction (e.g., 2.6–3%) plus a fixed dollar amount (e.g., $0.30 per transaction).
ACH Fees:
PushPress Free Plan: 2.19% + $0.30 per transaction
PushPress Pro Plan: 0.79% + $0.30 per transaction
PushPress Max Plan: 0.79% + $0.30 per transaction
No additional gateway or hidden fees.
Bank account verification is free.
Stripe charges for failed payments ($4) and disputes ($15), deducted directly from your Stripe account.
Flex Fees and Payment Cost Management
PushPress provides a solution to manage payment processing costs through configurable Flex Fees, allowing businesses to encourage the use of lower-cost payment methods like ACH. Flex Fees include:
Card Flex Fee: Adds 0–10% to all credit and debit card transactions.
Bank Flex Fee: Adds 0–10% to all ACH or direct debit (bank) transactions.
These settings can be optimized to reduce financial strain by discouraging higher-fee transactions.
How to Enable ACH in PushPress:
Enable ACH in the App Store:
Navigate to Apps > App Store > ACH and install it.
Set NSF (Non-Sufficient Funds) Fees:
With Credit Card Backup: If an ACH transaction fails due to insufficient funds, the member’s credit card on file will be charged the NSF fee and the original transaction amount.
Without Credit Card Backup: The fee and transaction amount will be retried on the same bank account until successful.
Alternatively, Flex Fees can be configured to encourage ACH payments by adjusting the charges applied to credit card transactions versus ACH transactions.
Troubleshooting ACH Payments
Common Issues and Solutions:
Failed Payments: If ACH payments are not processing, try:
Logging out of the app and trying again.
Re-entering the bank details during the next login attempt.
Using an alternative payment method if issues persist.
Setup Problems: If members have difficulty setting up ACH:
Verify ACH is enabled for their specific plan.
Ensure the member's profile is properly linked to a payment processor.
Check that bank account verification was completed successfully.
Administrator Support Options:
Manual Setup: Administrators can manually add bank details to member profiles:
Collect details via phone or during an in-person visit.
Add information through the admin portal.
Enable ACH as the preferred payment option for the member's profile.
Ongoing Support: If issues remain unresolved, contact PushPress support for further assistance.
Tips for Smooth Migration:
Credit Card First: Migrate members to credit cards initially, ensuring all members have plans assigned and the migration process is complete.
Introduce ACH: Enable ACH for plans once migration is done. Offer a discount on plan pricing as an incentive for members to switch to ACH.
Credit Card as Backup: Always recommend having a credit card as a backup to minimize failed transactions and disputes.
ACH in countries other than the United States:
Need More Help?
For further assistance:
Check out other Help Articles.
Use the PushPress Messenger (blue box in your CORE account).
Email us at support@pushpress.com.
About PushPress
PushPress is a gym management software that can help you a lot in managing your gym. We've helped thousands of local gyms streamline and professionalize their businesses with our intuitive, powerful solution for managing fitness facilities - all from the palm of their hands!