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ACH Direct Debit

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.

ACH Payment Page

Supported features

FeaturesACH Direct Debit
Payment method typeDirect Debit
Merchant country codesUS
Shopper country codesUS
Processing currenciesUSD
Settlement currencies*USD
Minimum transaction amountNA
Maximum transaction amount*4,000 USD
Session timeoutNA
Refunds
Partial refunds
Chargeback
Recurring payments
Dynamic descriptor
Settlement thresholdNA
Settlement frequencyDaily

*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.

Integration options

Airwallex offers a range of integration methods to build your checkout page, minimise your implementation effort and allow you to get to market quickly.

Integration optionSupported
Hosted Payment Page
Drop-in Element
Embedded Elements⛔️
Native API
Pay by Link⛔️
Mobile SDK⛔️
Plugins⛔️

Omni-channel support

ACH Direct DebitDesktop Website BrowserMobile AppMobile Website Browser
One-time payments
Recurring payments

Authorization

In accordance with the NACHA rules, the owner of an external bank account MUST authorize you before you can process ACH direct debits from (or credits to) that bank account. Make sure you verify the identity of shoppers, determine their eligibility to purchase products and services, and acquire appropriate authorization to initiate ACH direct debits from shoppers' external bank accounts. Airwallex recommends that you display the exact authorization terms below for your shopper on the checkout form. Only upon receiving the shopper’s authorization will you be able to initiate direct debits from your shopper’s bank account.

By providing your bank account details and confirming this payment, you authorize Airwallex US, LLC ("Airwallex") on behalf of [MERCHANT NAME] to electronically debit your account via ACH for the total payment amount (or recurring payment amounts) specified on this page, and, if necessary, electronically credit your account to correct erroneous debits. You certify that you are either the holder of, or an authorised signatory, on the bank account listed above.

If you integrate using Hosted Payment Page (HPP) or Drop-in Element, Airwallex will display the authorization terms for you.

Authorization notifications

You should provide a receipt or confirmation of each authorization to the shopper, either via email or as a downloadable copy on your website, and make it available to the shopper at all times. We recommend that you store authorization information digitally or in paper form for two years.

The authorization information typically includes:

  • Legal terms of the authorization
  • Authorization date
  • Name of the account holder
  • Routing number
  • The last 4 digits of the bank account
  • The amount to be debited
  • The date of the current and future payments
  • Your contact information

The following is a sample mandate confirmation email that you can send:

AttributesSample
Authorization date25 Apr 2022
Account holder nameJohn Smith
Routing number123456789
Account number01234567890123
Debit amount$ 100

By providing your bank account details and confirming this payment, you authorize MERCHANT NAME to electronically debit your account via ACH for the total payment amount (or recurring payment amounts) specified on this page, and, if necessary, electronically credit your account to correct erroneous debits. You certify that you are either the holder of, or an authorised signatory on, the bank account listed above.

Verification

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.

Disputes

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.

On this page
  • Supported features
  • Integration options
  • Omni-channel support
  • Authorization
  • Verification
  • Disputes