ACH Direct Debit - BETA
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
Features | ACH Direct Debit |
---|---|
Payment method type | Direct Debit |
Merchant country codes | US |
Shopper country codes | US |
Processing currencies | USD |
Settlement currencies* | USD |
Minimum transaction amount | NA |
Maximum transaction amount* | 4,000 USD |
Session timeout | NA |
Refunds | ✅ |
Partial refunds | ✅ |
Chargeback | ✅ |
Recurring payments | ✅ |
Dynamic descriptor | ⛔ |
Settlement threshold | NA |
Settlement frequency | Daily |
*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 option | Supported |
---|---|
Hosted Payment Page | ✅ |
Drop-in Element | ✅ |
Embedded Elements | ⛔️ |
Native API | ✅ |
Pay by Link | ✅ |
Mobile SDK | ⛔️ |
Plugins | ⛔️ |
Omni-channel support
ACH Direct Debit | Desktop Website Browser | Mobile App | Mobile Website Browser |
---|---|---|---|
One-time payments | ✅ | ⛔ | ✅ |
Recurring payments | ✅ | ⛔ | ✅ |
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.
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:
- Reject the direct debit without reason within 60 days for consumers/ 2 working days for businesses
You will not be able to defend yourself and the dispute will always result in the settlement being reversed. We recommend you to contact your customer to resolve the situation.
- Dispute an unauthorized or incorrect ACH paymentthe direct debit within 2-3 years (depending on 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.
Chargeback handling
Any bank rejections or chargebacks are treated as disputes by Airwallex. If a dispute gets created, Airwallex sends the dispute.accepted
webhook event, and deducts the amount of the dispute and associated dispute fee from your pending settlement amount.
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.