ACH Direct Debit
ACH Direct Debit is a popular payment method used in the United States as an alternative to credit and debit cards. The payments are processed via Automated Clearing House (ACH) , an electronic network for processing financial transactions operated by Nacha .
Both one-time and recurring payments are supported by ACH. Due to the nature of asynchronous authorisation, ACH might take up to days to process payments; hence Airwallex recommends accepting ACH Direct Debit for recurring services.
|Features||ACH Direct Debit|
|Payment method type||Direct Debit|
|Merchant country codes||US|
|Shopper country codes||US|
|Minimum transaction amount||NA|
|Maximum transaction amount*||4,000 USD|
*Use Airwallex Auto FX feature to unlock more settlement currencies.
*Support for increasing the maximum transaction amount is available on a case by case basis as per approval from the risk committee.
Airwallex offers a range of integration methods to build your checkout page, minimise your implementation effort and allow you to get to market quickly.
|Hosted Payment Page||✅|
|Pay by Link||⛔️|
|ACH Direct Debit||Desktop Website Browser||Mobile App||Mobile Website Browser|
According to NACHA rules , you must conduct account verification for the first use of an external bank account number, or changes to the account number. Airwallex offers micro-deposit verification services to help you verify bank accounts. Micro-deposits are most commonly used for linking bank accounts for future payments.
After the shopper submits the checkout form, Airwallex will send two micro-deposits to the owner’s bank account and an email containing the verification link to the shopper. The two micro-deposits may take up to two days to arrive. After the shopper receives the micro-deposits, they can enter the two amounts on the verification link to get the account verified. Learn more about micro-deposit verification.
ACH Direct Debit payments can fail for either of the following reasons:
- A problem occured with the settlement, for example the account has insufficient funds, has been closed, or the account number is invalid.
- The shopper has requested the bank for a refund. This is referred to as a dispute. While corporate accounts have only up to two banking days, consumer accounts have up to 60 calendar days to dispute after settlement. Reasons for dispute include:
- The shopper did not formally agree to the charge, or revoked such an agreement.
- The charge is processed on a date earlier than agreed.
- The amount of the charge is different than agreed.
Disputes on ACH payments are fundamentally different from those on credit card payments. You cannot defend against ACH Direct Debit disputes - they will always result in the settlement being reversed. You must contact your shopper to resolve the dispute.
If a dispute gets created, Airwallex sends the
dispute.accepted webhook event, and deducts the amount of the dispute and associated dispute fee from your pending settlement amount.
Risk of double-crediting
There may be risks of double crediting with ACH refunds and disputes. If you proactively issue your shopper a refund while their bank also initiates the dispute process, they may receive two credits for the same transaction.
When issuing a refund for an ACH payment, you must notify your shopper immediately that you’re issuing the refund and that it may take 2-5 business days for the funds to arrive in their bank account.