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Everything You Need To Know About Accepting ACH Payments

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Rose Holman

Rose Holman

Writer
Rose Holman is a writer, blogger, and educator from Portland, OR with an MA in Teaching from Western Oregon University. She enjoys educating SMB owners about the complicated (and notoriously sketchy) world of payment processing. Since starting at Merchant Maverick in 2016, she has also added eCommerce software to her areas of expertise.
Rose Holman
Rose Holman

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14 Comments

Responses are not provided or commissioned by the vendor or bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the vendor or bank advertiser. It is not the vendor or bank advertiser's responsibility to ensure all posts and/or questions are answered.

    Rhea

    In the state of Illinois is it required to have an ACH authorization form filled out with all of the customers bank info? It just seems like requiring that is more of a liability since then you have their info on paper. Does anyone know?

      This comment refers to an earlier version of this post and may be outdated.

      Jessica Dinsmore

      Hi Rhea,

      To be honest, this isn’t something we’ve ever encountered before, so it may be a bit outside of our expertise. I’d rather not give you an answer that I’m not too certain about. If you happen to figure this out on your own, please let us know what solution you find so we can learn how to answer something like this in the future.

        This comment refers to an earlier version of this post and may be outdated.

        John Toston

        Hey Rhea,

        Most all states require an authorization form signed, however, this could pose a liability if that authorization with the account information was not stored properly. You can upload this authorization form in a secure file system and/or utilize a way to tokenize the bank account information on the back end with a digital authorization form.

        Respectfully,
        John Toston

          This comment refers to an earlier version of this post and may be outdated.

          Mike F

          Regarding processing ACH payments in person (i.e. check scanner), how do you avoid the payer having to first verify ownership of their account? Entering their online credentials w something like Plaid nor verifying microdeposits which can take days seems practical for the check scanner scenario.

            This comment refers to an earlier version of this post and may be outdated.

            Tom DeSimone

            Hi Mike,

            The usual protocol is to ask for ID and, when possible, to make a copy of the ID as proof. It’s not a perfect system, but it’s not perfect with credit cards either.

              This comment refers to an earlier version of this post and may be outdated.

              Mike Jinior

              Are there any other ACH gateway that anyone is aware of?

                This comment refers to an earlier version of this post and may be outdated.

                Chloe Bahal

                Hi Mike,

                You might want to check out Stripe.

                  This comment refers to an earlier version of this post and may be outdated.

                  Lillian Angelo

                  I have asked banks, friends and other of HOW TO PROVE PERSON OR COMPANY CHEATED ME OUT OF MONEY BECAUSE ‘FIRST EXPERIENCE’ IN ACH CHECK SYSTEM WAS USED. THERE IS NO ENDORSEMENT OF SIGNATURE/BUSINESS ACCEPTANCE. SO I AM OUT OF $100.00 WITHOUT SERVICE. No proof of their exceptance. HELP, I WANT MY FUNDS BACK.

                    This comment refers to an earlier version of this post and may be outdated.

                    Chris

                    Interesting and enlightening read. Do you think it is possible to bypass the use of merchant accounts altogether by just using your own business checking account with a payment gateway such as Authorize.net? I am currently looking into this.

                      This comment refers to an earlier version of this post and may be outdated.

                      Jad Chahine

                      Hi Chris,

                      Would be interested in hearing if you were able to bypass ACH. Please feel free to email me at jad (at) moulah (dot) com.

                      Thanks!

                      Jad

                        This comment refers to an earlier version of this post and may be outdated.

                        Ravi

                        i need a payment gateway for my india based business. i am not having any one in US
                        so if any one is able to help me out then reply me or mail me

                          This comment refers to an earlier version of this post and may be outdated.

                          Shannon George

                          Hi there! Thanks for reading! We’ll get back to you about this shortly.

                            This comment refers to an earlier version of this post and may be outdated.

                            Tom DeSimone

                            Hi Ravi,

                            Check out Instabill. They can usually help.

                            Good luck!

                              This comment refers to an earlier version of this post and may be outdated.

                              Jason

                              Nice to hear that 25¢ and no percentages for an ACH transaction is a great deal. That is what we charge at GivingTools (www.givingtools.com) and our main issue with potential customers is them not believing that the rates are legit, because they are so low. Thanks for the confirmation!

                                This comment refers to an earlier version of this post and may be outdated.

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