ACH pricing for US businesses, accepting the USD is 0.8% of the transaction amount, capped at $5 (ACH Direct Debit payments above $625 is a flat cost $5.)
- There are no additional gateway fees or hidden fees.
- No cost to verify a customer's bank account.
- Stripe charges $4 for failed ACH Direct Debit payments and $15 for disputed ACH Direct Debit payments. This is deducted directly from your Stripe account.
There is a big debate of Credit Cards payments vs ACH. It comes down to a few questions:
- How important is saving 2% of total credit card revenue?
- Is your business run mainly on recurring payments or single transactions?
- How quickly do you need access to your funds after the transaction?
If saving 2% on total credit card revenue is important, if you mainly do recurring payments, and if you are comfortable with waiting longer for deposits to arrive, then ACH might be a great option for you.
Pros vs Cons
- Transaction fees are lower. Credit card transactions are 2.9% + $.30. ACH transactions at 0.8%, capped at $5
- Connected banks tend to be more reliable than credit cards. People are less likely to change or cancel their bank account information. Alternatively, credit cards are very easy to change or cancel.
- Verification process. If a member's bank is not recognized by Plaid, then the member will need to wait for a few test deposits to arrive in their account, and will need to verify those amounts. This adds a barrier to the on-boarding process
- Members might not want to give their bank account information. Credit card companies typically protect the buyer against fraudulent activity, where as ACH gives direct access to a person's bank.
- Fees for failed ACH debits and disputes.