The Complete Guide To ACH Processing Fees

ACH (Automated Clearing House) payments are often proposed as a less expensive alternative to increasingly costly credit card transactions. Below, we’ll give you a full rundown of what ACH processing fees are and how much you should expect to pay in ACH payment fees.

Should I Expect To Pay ACH Processing Fees?

Nacha, the organization that runs the ACH network, charges administrative fees to the institutions that use it (banks, for example). These fees, which consist of an annual fee for the institution and a per-entry fee, are pretty trivial on the institutional level.

For example, the 2024 administrative fees are:

• Annual Fee: $344
• Per-Entry Fee: $0.000185
• Same Day ACH Entry Fee: $0.052

As you can see, there’s not much in the way of costs to pass on.

Your bank, for example, generally won’t charge you for moving money from two accounts belonging to institutions. Costs you incur for ACH transactions are almost entirely fees charged by the payment processor offering the service, not network fees. Keep this in mind when you’re shopping for services.

ACH Payment Processing Fees VS Credit Card Fees

Like all types of payment processing, ACH fees come in a range that depends largely on what processor you use: a merchant services provider, business bank account, or payment service provider (PSP).

Here’s how typical ACH fees stack up to some other common forms of payment, including wire transfers and RTP payments:

As ACH fees are determined by payment processors, there isn’t any standardization of fees. ACH processing fees may be listed as a percentage, a flat fee, or both. Which is best for your business depends on your typical transaction size but, in general, a flat fee will be better for many.

Don’t forget that many business bank accounts allow you to accept unlimited ACH transactions with no processing fees. So it may be less costly to process ACH transactions through your bank, rather than through a merchant services provider or PSP. Knowing the fees associated with your bank and payment provider is the key to making the right decision for your business.

4 Types Of ACH Fees

Here is a quick overview of the most common ACH fees:

1. Percentage Fee: If your ACH pricing includes a percentage fee on each transaction, you’ll be looking at a range of 0.5%-1.5%. That compares favorably to credit card fees, which can go up to 3.5% or more.
2. Flat Fee: You may be charged a flat fee by your provider for each ACH transaction. These ACH processing fees can run from $0.20-$1.50/transaction. That’s higher than the flat fees you might pay on a credit card transaction. Keep in mind, however, that credit card processors typically charge both a percentage and a flat fee.
3. Setup & Monthly Fees: Traditional merchant services providers may charge around $15-$30/month to add ACH processing to your account. However, many providers will allow you to include ACH processing at no additional monthly cost. Again, it pays to be aware of the fees, so you can make the best choices.
4. Reversal Fee: When customers dispute an ACH payment, and you’re faced with a reversal or chargeback, you could see an additional fee. Keep in mind that ACH reversals are significantly less common than credit card reversals, and customers have less time and fewer reasons to challenge ACH transactions. ACH reversal fees range from $2-$25, depending on your payment processor.

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

Now let’s take a look at what ACH transactions will cost you by provider. Here’s what you can expect from some popular ACH processors:

How Much Should I Pay For ACH Processing?

The answer, of course, is “as little as you can get away with.”

If you run ACH payments through your bank, you may pay lower fees. In fact, many of the best business banks offer no-fee ACH transfers. However, if you’re looking to integrate ACH payments into your sales processes or want to use their subscription billing tools, the convenience offered by a payment processor may be worth the additional cost.

FAQs: ACH Processing Fees