ACH Sales allow you to accept DDA information (as opposed to a credit card) from your customers.
This page gives a detailed overview of the ACH Sales process. If you are looking for the ability to create an ACH Purchase to pay a Supplier, that is detailed on this page.
We make it easy for you to provide various types of payment options, including ACH, to your customers. You can create an ACH sale via the CREATE SALE API. Integrating our Hosted Payment Page with your checkout process provides an easy customer payment experience. This allows you to accept ACH as a payment option and provides your customer with everything they need to either log into their bank account or to key their account and routing information.
ACH Sales are inherently riskier than Credit Card sales. To help mitigate that risk, we've partnered with a third party vendor who has advanced AI capability to help you identify high risk transactions. You will have the option of running risk analysis on each ACH sale you process. Highest risk transactions will be declined. For lower or no risk transactions, a risk score will be returned and we will use that risk score to determine the path the sale should take.
There are both per ACH transaction fees and per Risk Analysis fees on ACH transactions.
See your contract for pricing but keep in mind the Risk Analysis call is an additional cost.
- If the risk score is high (low level of risk) the sale will be created and you will be able to issue and activate the follow-up purchase immediately.
- If the risk score falls within a "normal" range, the sale will be created and you can still issue your VCC or ACH Purchase but it will not be activated for 3 days. This will provide time for the ACH debit to complete successfully without a purchase going through against the funds from that sale.
- If the risk score is low (high level of risk), the transaction will be declined and the Sale response will show:
transaction status as 'Transaction - Declined', with processorMessage = 'RiskDeclined'
You can process a sale without running Risk Analysis. We will automatically delay activation of the purchase 3 days.
Risk declined transactions cannot be processed. You will need to ask your customer for a different form of payment. Although we don't recommend it, you CAN process the sale without including the risk score analysis. The sale will process and you can issue the purchase (VCC or ACH) but activation of that purchase will be delayed 3 days to give the ACH debit time to clear the bank.
In addition to running Risk Analysis as part of the ACH sale creation API, you can also run Risk Analysis on an ACH account without tying it to a sale. For example, if you have a clients banking information and just want to be sure their account is not considered high risk, you can run the Verify endpoint for that consumer's bank account. See developers docs here.
- ACH Sales Risk Score Threshold - We will use a risk score threshold to determine if a follow up purchase can be immediately activated. All sales that go through risk analysis will be assigned a risk score. If that score is equal to or exceeds the risk threshold, you will be able to issue the virtual card with an immediate activation date. If the risk score is below this threshold, you will still be able to issue the virtual card but activation of that purchase will be delayed 3 days.
ACH transactions are all bulk processed once per banking day at 3:00 PM EST. When these transactions are processed, they are sent to the respective banks for further processing and will settle overnight.
The timing on when the consumer will see the ACH debit hit their bank account will depend on when their bank processes the ACH transaction that was sent to the Fed for processing. Typically, the consumer will see the debit the following business day if the ACH Sale was made before 3:00 PM EST or two days after if processed after 3:00 PM EST.
There is no dedicated reporting for ACH Sales. But all existing reports include a “Type” to indicate if the Sale was ACH, Cash, or Credit Card.
Daily Funding (such as Daily Margin, Adjustments, etc.) works very similarly for ACH sales as it does for Credit Card sales.
Daily Margin - paid out when the Sale amount is greater than the issued amount of the Purchase. For example, $100 ACH Sale, $80 VCC issued = $20 in Daily Margin
Residual Margin - Residual Margin is only for Virtual Cards (when the amount settled is less than what it was issued for) so whether the Sale was an ACH or Credit Card, Residual Margin works the same way.
ACH Declines - If the debit from an ACH sale ultimately fails we will pull those funds back from you. This will result in an adjustment record in your daily accounting file.
NACHA Requirement to Authorize ACH Sales
The ACH network is the actual technology that moves payments from bank account to bank account. That technology is overseen by NACHA (National Automated Clearing House Association), an organization that sets and enforces the rules by which the ACH network needs to abide by. To be in compliance with NACHA regulations for accepting ACH payments, we must be able to provide proof that your customer authorized the debit to their account. If a customer ever contests an ACH payment CXP will need to be able to provide:
- Screenshot of the widget served to the consumer where they agree to the ACH payment.
- Date and time of the sale
- IP address of the consumer (IP address where the sale originated).
It is a requirement that you pass the consumer's IP address in the Sale API. If you use our Hosted Payment page we will have the information needed. However, if you choose not to utilize our HPP you will need to provide ConnexPay with a screenshot of the widget your customer sees and agrees to when placing their ACH order.
If the ACH transaction hasn't been batch processed for the day yet, the sale can be cancelled. Otherwise you will need to process a return in order to credit the consumer.
When ACH Transactions do not clear the supplier’s account, they are returned. This can happen for a variety of reasons, including closed accounts, incorrect account numbers, etc. When an item is dishonored, the payment's status will update to 6 - Returned. A return could take up to 60 days to process (purchase returns are very rare).
Information on ACH Sale Webhook events can be found here.
Each banking day any pending ACH sales are pulled for processing at 3:00 PM EST. During processing, transactions are quality controlled for data issues, and sent off to their respective banks which will credit the specified bank account. This will happen overnight at which point the transaction will have a status of ‘Processed’ and should be considered paid.
Is there a chance the ACH transaction could be returned once it hits the ‘Processed’ status?
There is a slight risk it could be returned up to 60 days after it has been processed.
The status of returned sales will be updated to Returned and you will be debited the sale amount.
You sure can. When you make an ACH Sale request you are required to include the Bank Account Object in your Create Sale request. The bank account object allows you to provide either a "RoutingNumber" AND "AccountNumber" OR the account token previously obtained ("AccountAndRoutingNumberToken").
Updated about 1 year ago