What is ACH bank transfer?
ACH (Automated Clearing House) bank transfer is an electronic bank-to-bank financial transaction that transfers money through the ACH Network, which is comprised of banks and different financial institutions in the United States. Direct deposits, eChecks, direct debits and automatic withdrawals are all forms of ACH bank transfer.
To learn more about ACH bank transfers, select a question to see its answer:
- How do ACH bank transfers work?
- Who is eligible to use ACH through GoDaddy Payments?
- What are the fees?
- How long does it take until I receive my funds through ACH transaction?
- Will my ACH activity appear on my payout statement?
- Which statuses can my ACH transactions have?
- Can I refund or void ACH transactions?
- What else is important to know about ACH voids and refunds?
- Why was my customer’s ACH payment marked as DECLINED?
How do ACH bank transfers work?
ACH bank transfers are made directly from one bank account to another. To process ACH payments, banks send (or accept) a payment instruction, which is processed through the ACH network.
An ACH transaction uses the account number and ACH routing number to instruct financial institutions to debit or credit accounts. Therefore, your customers will need to enter their routing number and account number when using ACH as their payment method.
Who is eligible to use ACH through GoDaddy Payments?
ACH is available as a payment method for US-based merchants who are using Invoicing and Online Pay Links. ACH bank transfer is not available for Pay Links on the GoDaddy mobile app.
What are the fees?
Fees for using the ACH payment method are 1% per transaction for payments received through online pay links and invoices.
If you subscribe to the Invoicing and Pay Links Plus plan, the fees are discounted to 0.8% with a $10 maximum per transaction.
Also, there are the following return fees:
- Administrative Return Fee: $4
- Unauthorized Return Fee: $15
How long does it take until I receive my funds through ACH transaction?
Usually, it takes between 3-5 business days for you to receive your ACH payment. However, this can sometimes vary due to the conditions set by financial institutions.
Will my ACH activity appear on my payout statement?
Yes, your ACH activity will appear on your payout statement as well as on the reports you generate through GoDaddy Payments, when applicable.
Which statuses can my ACH transactions have?
In your dashboard, you can see the different statuses of your ACH transactions:
- PENDING: The first status in the ACH lifecycle. It remains in this status until it is moved onward for processing through the financial system at 7:30 PM.
- CAPTURED: The payment was processed successfully. Funds will be credited to your GoDaddy account and included in an upcoming payout.
- FUNDED: Funds for this ACH payment have been paid out to you in a payout.
- DECLINED: The payment was not approved.
Can I refund or void ACH transactions?
Yes, ACH transactions can be refunded or voided:
- ACH payments in PENDING status can be voided until 7:30 PM EST on the day of the transaction. Payments made after 7:30 PM EST can be voided until 7:30 PM EST on the following day.
- ACH payments in CAPTURED or FUNDED status can be refunded beginning 2-3 days from when the payment is made.
What else is important to know about ACH voids and refunds?
Voids and refunds are not permitted on payments that have been marked with the DECLINED status.
Why was my customer’s ACH payment marked as DECLINED?
Similarly to payment card transaction declines, some common reasons why ACH payments decline include:
- Insufficient funds
- Incorrect bank account or routing number information
- Account closed
- Incorrect customer personal data
- Fraud / risk related reasons
In the case of insufficient funds, if your customer added sufficient funds to their bank account since receiving the decline, they can try making their payment again.
If you or your customer think that incorrect account data was provided at the time of payment, you can invite the customer to try making another payment while being careful to provide correct payment information.
