The Complete Guide To ACH Processing Fees

ACH payments are often a lower-cost alternative to credit card processing. Here’s how ACH processing fees work and what businesses can expect to pay.

Should I Expect To Pay ACH Processing Fees?

Businesses typically pay a fee to accept ACH payments. However, these fees are usually charged by the bank or payment processor providing the service.

Nacha administers the ACH Network’s rules and charges participating financial institutions small annual and per-entry fees. Banks and processors set their own customer-facing fees, which may be charged as a flat amount, a percentage of the transaction, or a combination of both.

Some banks allow consumers to transfer money between their own accounts for free, but business ACH payment processing usually carries a fee.

ACH Payment Processing Fees VS Credit Card Fees

ACH payments generally cost less to process than credit card transactions, especially for large or recurring payments. However, actual fees depend on your bank or payment provider.

ACH pricing may include:

• A flat per-transaction fee
• A percentage of the payment, sometimes with a fee cap
• A monthly service fee
• Fees for returned or disputed payments
• Additional charges for faster processing or bank verification

For example, some processors charge a percentage capped at a few dollars, while others charge a fixed fee for each ACH payment. Credit card processing usually combines a percentage of the sale with a fixed transaction fee, making it more expensive for larger transactions.

Banks may include a limited number of ACH transfers with a business account or offer lower rates than payment processors. However, free unlimited ACH processing is not standard, so compare transaction limits, monthly fees, return fees, and processing times before choosing a provider.

4 Types Of ACH Fees

ACH costs vary by bank and payment provider, but businesses may encounter four common types of fees:

1. Transaction Fees: Providers may charge a flat fee, a percentage of the payment, or both. Percentage fees are sometimes capped, which can make ACH economical for larger transactions.
2. Monthly Fees: Some banks and merchant services providers charge a monthly fee for ACH processing, while others include it with an existing account or plan.
3. Return Fees: You may pay a fee when an ACH payment is returned because of insufficient funds, incorrect bank information, a closed account, or another issue.
4. Dispute Fees: Providers may charge an additional fee when a customer disputes an ACH debit. Rules and dispute timelines depend on the account type and reason for the dispute.

Your fees will depend on how your business processes ACH payments. We’ve included cost ranges in our list of the best ACH providers.

Of course, if you use one of the options included in our list of the best business banks, you could pay $0 for ACH processing.

ACH Payment Fees By Provider

ACH pricing varies widely by provider and transaction type. Payment processors may charge a flat fee, a percentage of the payment, or both, while business banks may include a limited number of ACH transfers with an account.

When comparing providers, look at:

• Per-transaction fees
• Percentage caps
• Monthly fees
• ACH return and dispute fees
• Same-day or expedited transfer costs
• Transaction limits

How Much Should I Pay For ACH Processing?

The best ACH pricing depends on how you plan to use it.

Business banks may offer free or low-cost ACH transfers, while payment processors typically charge more in exchange for features such as invoicing, recurring billing, payment links, and automated reconciliation.

Compare transaction fees, monthly costs, fee caps, return fees, and included tools to find the best overall value.

FAQs About ACH Processing Fees