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Payment Methods OverviewGlobal
ACH Direct Debit - BETA
Desktop/Mobile Website Browser Save bank details for future paymentsMicro-deposit verification
EFT Pre-Authorized Debit - BETA

ACH Direct Debit - BETA

ACH Direct Debit

This payment method is currently available in beta testing program. Please reach out to your Airwallex account manager or [email protected] if you'd like to join the beta.

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 the Automated Clearing House (ACH) which is an electronic network for processing financial transactions operated by Nacha.

Both one-off and recurring payments are supported by ACH Direct Debit. Due to the risk of chargebacks, we only recommend using ACH Direct Debit for recurring scenarios where the payer is a business.

ACH direct debit 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
Partial refunds
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⛔️

Omni-channel support

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

ACH direct debit timing

ACH Direct Debit provides delayed notifications, which means transactions cannot be confirmed immediately.

When you initiate a payment with an active authorization, a 2-business-day period is required to confirm the payment's success:

  • During this 2-day window, a payment can fail due to two reasons: bank rejection (e.g. insufficient funds, inactive bank account) or business payer disputes.
  • If there are no bank rejections or business disputes, the payment is considered successful and settled on the 2nd day.

After a payment is considered successful, there's still a possibility of bank rejection or dispute by consumer payer. Both are considered disputes.

  • Bank rejection: this typically occurs within the 1st or 2nd day. However, in rare instances, a successful debit payment can be reversed up to the 5th day, subject to the decision of the banks involved.
  • Dispute by consumer payer: consumers have up to 60 calendar days to reject the payment without providing a reason.

The following diagram describes the timing of ACH direct debit payment. For information on how we keep you informed about these events, see notifications from Airwallex.

ACH timeline

ACH direct debit authorization

In accordance with the NACHA scheme rules, you MUST be authorized by the owner of an external bank account before processing ACH debits from (or credits to) that bank account. You are solely responsible for verifying the identity of customers, determining their eligibility to purchase products and services, and acquiring appropriate authorization to initiate ACH debits from customers' external bank accounts.

It is suggested that you display the exact authorization terms below for your customer on the checkout form. Only upon your customer’s authorization will you be able to initiate debits from your customer’s bank account.

By providing your bank account details and confirming this payment, you authorize Airwallex US, LLC to electronically debit your account via ACH for the total payment amount 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 authorized signatory on, the bank account.

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

Airwallex will send an authorization email to your customers automatically when they authorize the payment. See a sample as below:

ACH DD authorization email

If you want to customise the email, contact our support team to add your corporate logo on this email. You can also turn off Airwallex confirmation email and send your own copy. You should provide the customer a confirmation for the mandate setup, either via email or as a downloadable copy on your website.

You should include wording advising of the content and purpose of this email and wording advising the recipient should check all the details and to contact support using a provided contact method if anything is incorrect. You should also include below information in your email:

Account holder nameJohn Smith
Routing number123456789
Account numberxxxx0123
Direct Debit amount100 USD
Schedule of future debits (if any)1st Aug
Contact information[email protected]

By providing your bank account details and confirming this payment, you authorize Airwallex US, LLC to electronically debit your account via ACH for the total payment amount 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 authorized signatory on, the bank account.

ACH direct debit verification

According to NACHA rule, you must conduct account verification for the first use of an external bank account number, or changes to the account number.

Airwallex offers Plaid to help you verify the bank accounts. Plaid is an open banking solution that helps you verify the banks account instantly and securely. Plaid

In some cases, we also offer verification via micro-deposit. For micro-deposit verification, Airwallex will send 2 micro deposits to the owner’s bank account and an email with the verification link to the shopper. The 2 micro deposits may take up to 2 days to arrive. After the shopper receives the micro deposits, they can enter the 2 amounts on verification link to get the account verified. Click here to learn more about micro-deposit verification.

Plaid will be set as the default verification option. If your wish to use micro deposits or skip verification please reach out to your account manager or [email protected]

ACH direct debit disputes

For ACH direct debit, the chargeback process gives significant consumer rights to the shopper. They can:

Disputes within the rejection window:

Consumer payers can reject direct debits without providing a reason within 60 calendar days, while business payers have a 2-working-day window. You will not be able to challenge the rejection and the funds will be returned to the shopper.

If a dispute gets created during this window, Airwallex sends the payment_disputes.accepted webhook event, and deducts the amount of the dispute and associated dispute fee from your pending settlement amount.

Disputes after the rejection window:

Disputing an unauthorized or incorrect ACH direct debit can occur within 2-3 years, varying by state law. For such disputes, Airwallex will reach out to you via email. Please note, that you are liable for any dispute outcome and associated fees.

Risk of double-crediting with refunds and disputes

Please note the risk of double crediting with 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, you should notify your customer immediately that you’re issuing the refund and that it may take 3-4 business days for the funds to arrive in their bank account.

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