Is There A Charge For ACH Payments Processing?
A third party ACH payment service provider is a private entity that offers ACH processing facilities to Merchant. To keep the business running and to generate a profit the third party ACH payment processor charges the Merchant.
The transaction rate for ACH is a lot less than that of Credit Card processing. There are multiple factors that play the key role in determining the transaction rates, some of the factors are the credit score of the business owner and the industry type. If the merchant’s credit score is bad or the industry is considered high risk, in that case, the ACH payment processing solutions can be a little bit expensive.
The transaction rate can be as lower than 3% for most of the business type. Merchants from high risk industries may have to pay more in terms of the transaction rate and per item fee. This rate includes charges for services like checking the account number, routing number and availability of fund before processing the transaction. This also includes the cost of voice verification if applicable before processing the transaction.
Most of the times the processors do not charge any setup fees. The Chargeback related issues can also reduce to a huge extent by using this option. Many merchants use ach as an alternative to high risk debit card processing.
Merchants located outside the United States can also use ACH payment processing solution by utilizing the services offered by Third Party ACH processors.