How to Minimize ACH Fees and Optimize Payment Efficiency

Introduction

ACH payments are a cost-effective solution for businesses, but fees can add up over time, especially for high-volume transactions. Implementing strategies to minimize these fees can significantly reduce costs while improving payment efficiency.

This blog explores best practices for reducing ACH fees, including automation, volume-based negotiations, and optimized payment scheduling. We’ll also highlight how Profituity’s PlatformNext helps businesses lower costs through automation.

Factors That Influence ACH Fees

ACH fees are influenced by multiple factors, including transaction volume, type, and service level. Businesses can reduce costs by addressing these key areas.

Payment Volume

Banks often offer lower fees for businesses that process a high number of ACH transactions.

Solution:
Negotiate volume-based discounts with your payment provider.

Payment Type (Credit vs. Debit)

ACH credit transactions (e.g., payroll disbursements) may have different fees than ACH debit transactions (e.g., recurring bill collections). Understanding these differences can help businesses optimize their payment mix.

Same-Day ACH Usage

Same-day ACH fees are higher than standard ACH fees but may be necessary for time-sensitive payments. Businesses should assess whether same-day processing is essential for all transactions.

Best Practices to Minimize ACH Fees

Automate Payment Processes

Manual payment workflows increase the likelihood of errors and delays, leading to higher fees from return and reversal transactions. Automation reduces these risks and ensures timely, accurate payments.

Example:
A logistics company automated its ACH payment processing, reducing return fees by 30%.

Consolidate Payments

Batching multiple payments into a single ACH file can lower processing fees by reducing the number of transactions submitted to the bank.

Optimize Payment Scheduling

Submitting payments before cut-off times ensures transactions are processed without delays, avoiding extra fees for expedited services.

Solution:
Use automated scheduling tools to ensure timely payment submissions.

How Profituity’s PlatformNext Helps Minimize ACH Fees

Profituity’s PlatformNext offers businesses advanced tools to manage and reduce ACH fees:

• Fee Tracking: Provides detailed reports on ACH transaction costs, helping businesses identify savings opportunities.

• Automation: Reduces errors and delays, minimizing return and reversal fees.

• Batch Processing Optimization: Enables businesses to consolidate payments, lowering transaction volume costs.

Schedule your free demo today to learn how PlatformNext can reduce your ACH payment fees!