How much can ACH Payment Processing Save Your Business?

How much can ACH Payment Processing Save Your Business?

If your business bills customers for recurring or subscription payments you absolutely MUST consider ACH Payment Processing Solutions.

Why? There are 2 BIG reasons. The first is that compared to credit cards you see much lower payment decline rates. Credit card declines can easily exceed 10% for recurring payments. ACH processing decline rates are typically sub 2% and can often be less than 1%. Think about the last time you changed your bank account versus the last time your credit card changed. Annually around 30% of cards are reissued. Clearly these declines cause problems with both cashflow and workflow. Massive time and energy must be devoted to mitigating credit card declines.

The second reason is costs savings. Credit card fees are based on a per-transaction fee and a % of the $ amount. The % varies based on card types your customers use. For most businesses, you can expect to pay from 2.5-3% of the payment amount to the card associations (eg MasterCard+Visa). In the ACH world, you should not be paying a % but rather a flat per-transaction fee. You should be able to get pricing of 35 cents or less.

So how much can you save if you offer ACH Payment Options to your customers? Check out our calculator below.

Calculate estimated savings* using ACH Processing for Recurring Payments versus credit cards. Not only do you save money on payment fees but ACH

Save on ACH Payment Fees

decline rates typically average 1-2% versus 10+% declines on recurring credit cards.


1 Enter # of Customers being billed via credit card on monthly basis
2 Average debit amount
3 % of customers that are using business credit card. Enter 10% as 10
4 Current credit card declne rate. Enter 10% as 10
5 Estimated monthly costs to process cards and deal with payment rejects =
6 Estimated costs if all customer were migrated to ACH
7 Estimated monthly savings
8 Estimated Annual savings



*Calculation based on:

Credit cards-Blended rate of 2.5% for non commercial cards, 3.2% for commercial. Estimated cost to collect failed credit cards = 15% of debit amount.

ACH-flat .25 [25 cents per transaction] and $2 per return with 1.5% decline rate.


Contact us today to get started using recurring ACH processing.

About Wayne Akey

Providing ACH and credit card payment solutions guaranteed to save businesses time and money. You can find Wayne on Google +. A specialist in ACH Integration for software/ASP providers looking to emdbed payment processing capabilities. Read about Integration. View my LinkedIn profile here