What is ACH?
ACH stands for Automated Clearing House and is an electronic network for financial transactions in the United States.
Instead of entering credit or debit card details, your client links their bank account to Pet Sitter Plus in the client portal. In doing so they authorize you to take payments directly from their account.
Once a client has linked their bank account, Pet Sitter Plus payment processing options are the same as if the client had entered their credit card. All the same functionality is available such as:
Bulk payment processing - take multiple payments from multiple clients in a single action.
"Pay Now" option enabling clients to make payments in the client portal.
Benefits of ACH
In the USA, Industry standard credit / debit card processing rates are are 2.9% plus 30c a transaction. If you typically process around $10,000 a month you might be paying around $320.00 a month in processing fees.
The rate for ACH is 1.2% with no "per transaction" fee so on the same $10,000 volume the cost would typically be as low as $120.00
This would represent a saving of over $200.00 reducing the overall payment processing fees by 62.5%.
What is Plaid?
Plaid is a company that partners with Stripe to make the ACH solution easy to use and quick to implement.
Benefits of Plaid
Adding bank account details made easy. Entering router codes and account numbers is not user friendly. Plaid enables clients to add their bank account details without having to enter their router code and account details.
Instant account authentication. Plaid authenticates accounts instantly, meaning that there is no delay in being able to take payments from a newly linked account. Older methods used micropayments to authenticate accounts which could take up to two weeks. Plaid replaces micropayments providing instant account verification.
Plaid works with Stripe. Plaid has partnered with Stripe to tokenize ACH for maximum security.
Limiting NSF fees. Plaid checks bank balances in real time to limit "NSF" (None sufficient funds) fees.
Can I use ACH outside the USA?
ACH is an electronic payments network for financial transations in the USA. If your pet sitting business is based outside the USA, it is unlikely that you will be eble to use ACH.
If your Pet Sitting Business is based outside the USA you may be able to use ACH provided that your business was incorporated in the USA, that your Stripe account is based in the USA and that you have a USA based bank acocunt in US$.
Do I need a Stripe account?
Yes - ACH has been implemented to work with your Stripe account. If you do not have a Stripe account you will need to apply for one first. For help on applying for a Stripe account please refer to this page Applying for a Stripe Account.
Can I use an ACH service from another payment processor?
No, our implementation of ACH requires that you have a Stripe account.
How long does it take for an ACH payment to reach my bank?
ACH payments take up to 5 business days to receive acknowledgment of their success or failure. Because of this, ACH payments take up to 7 business days to be reflected in your available Stripe balance.
How do I start using ACH with Plaid in my Account?
Follow the instructions on this page Stripe Use ACH with Plaid.