You may be asking why you should use an outdated, out-of-date money transmission mechanism like ACH. ACH is still alive and thriving. You’re probably already utilizing ACH Service Provider at the international level to deposit cash into a digital wallet or to have some of your monthly expenditures deducted automatically from your account.
It is estimated that seven billion ACH payments were made in the fourth quarter of 2020, increasing 8.9% from the previous year. While P2P costs rose the highest, B2B ACH payments increased by almost 15% to 1.2 billion, indicating that the technique is becoming a more popular means to pay suppliers.
One of the most significant advantages of ACH payments is their low cost. ACH for international merchant solutions costs vary, but they are always less expensive than credit or debit card payments, making them a more cost-effective though a little more time-consuming option to go cashless.
While ACH Payments are unlikely to replace credit cards, especially in retail transactions fully, they may provide further convenience for your consumers while also lowering your expenses.
The Different Types of ACH Services
There are a few typical paths to setting up ACH payments for companies that take payments online – via electronic invoicing, a virtual terminal for keying-in payments, a website or web form, or any other means.
To accept ACH payments of Marchant Solutions, you’ll need two main components, which may or may not be supplied by the same entity:
- An ACH processing account that’s linked to your gateway
- A payment gateway (software that transfers payment data)
Here are a handful of the most frequent ways businesses come to accept ACH payments: MSPs that set up merchant accounts for payment card processing typically also arrange ACH facilities for their clients with one or more specialized ACH payment providers. You may begin your ACH processing search here if you already have a reputable merchant account provider. You will get a better bargain on ACH processing costs by combining them with credit card processing and other merchant services.
Payment Service Providers (PSPs), often known as third-party processors or merchant aggregators, do not need you to be underwritten for a specialized credit card or ACH merchant account. Instead, the PSP establishes a shared merchant account on behalf of several different businesses. Using a third-party processor has both benefits and drawbacks. The payment gateway software is usually already bundled with a PSP, an excellent advantage for online businesses. To put it another way, you don’t have to register for ACH processing individually to Marchant Solutions.
The Best international ACH Processing Firms
We investigated several ACH processing companies to find much more comprehensive and cost-effective solutions. The top ACH processing companies for each type of organization are listed below.
The majority of the providers we’ve looked at so far accept ACH payments as part of a broader payment package that includes credit card processing. But what if you don’t need to accept credit cards? Dwolla is a service that can help with this.
Dwolla is a company that only accepts ACH payments. Most potential Dwolla users will be interested in the Pay-As-You-Go plan (paid plans start at a staggering $2,000 per month). You’ll be able to handle ACH transactions for 0.5 percent of each transaction for no monthly fee. A verified business account may send and receive $10,000 in a single transaction. It’s much less costly than most other ACH-capable payment processors, especially at the Pay-As-You-Go level, and it’s interesting to investigate even unless you already have online payment system capabilities.
You can obtain fixed-rate ACH processing if your company is big enough for the Scale plan’s monthly cost to make sense. That would only make sense if you were conducting many transactions.
This is the best option for eCommerce companies. Braintree and Stripe are main competitors in the same market: both are developer-focused payment processors specializing in eCommerce and international transactions. The main distinction is that, whereas Stripe is a third-party processor, Braintree provides its clients with individual merchant accounts. You’ll receive more excellent account stability as a trade-off, but you’ll have to go through a lengthier, more rigorous application procedure.
Braintree charges a set rate of 0.75 percent each transaction on all ACH debits, with a $5 fee limit. Enterprise-level companies are eligible for discounts. To handle ACH debits, you’ll need to have access to Braintree’s gateway service. The Braintree gateway is a bit expensive on its own, so if you decide to use this processor, we suggest joining up for the complete Braintree package.
Despite providing merchant accounts, Braintree does not yet handle high-risk businesses.
AND Processing is one of the younger players on the payment processing scene, but the business has a strong track record, and we’ve been pleased with what we’ve seen so far.
ACH provides excellent value for high-volume Credit Card Processing, with ACH processing offered for $10 per month on a la carte basis. Considering that the per/transaction charge is a flat $0.50 may seem a little excessive. If you handle high-value checks regularly, you might save a lot of money. However, if your ACH transactions are mostly low-value or infrequent, the flat rate may not be the most cost-effective option.
- Subscription-based ACH Processing
- Subscription-based credit card processing
- Low costs for high-volume ACH transactions
- Excellent customer service
Stax of the Fattmerchant
Stax by Fattmerchant achieves the extraordinary feat of having both a sense of humor and transparent pricing, which are both uncommon in a merchant solution company. ACH Service Provider Stax is also one of the rare businesses that offer membership pricing. Instead of marking up your rate beyond the interchange rate, Stax charges a higher monthly subscription fee. ACH Service Provider Stax is a better deal for businesses that process many card transactions.
So, what exactly is the ACH situation? ACH processing is included in Stax’s Stax Pay software suite, starting at $49 per month. A 1% transaction fee, up to a maximum of $10, will be added to each ACH transaction. This somewhat high monthly fee, combined with a low per-transaction cost, makes it a better solution for large-volume businesses than for individuals who merely need to cash the occasional check, just as the rest of Stax’s services do. It is also restricted to merchants situated in the United States.
- Simple membership cost
- Month-to-month payment with no early termination charge
- Next-day funding options
- QuickBooks integration
If you’ve ever made an online purchase with a credit card, your payment information is likely to have traveled through Stripe’s infrastructure through ACH Service Provider. Stripe is more of a payment platform than a payment provider, with a diverse set of features that can fit into almost any niche. It can deal in over 100 different currencies and provides services to businesses in 36 other countries.
Stripe is capable of processing ACH payments, but its pricing structure might be confounding. An ACH debit incurs a cost of 0.8 percent of the transaction amount, up to a maximum of $5. According to ACH credit, each credit payment costs $1 plus a $7 fee if the price is successful. There is a $5 cost for processing checks, so it is a little more expensive.
Stripe’s major fault is that, as a third-party processor, it has account stability issues. As a result, it’s not suitable for high-risk businesses. Working with a developer will help you get the most out of Stripe.
- Consistent flat-rate pricing
- Excellent international assistance
- Excellent subscription services
- Advanced reporting tool