Lower‑Cost • Bank‑to‑Bank • B2B/B2C

ACH & EFT Payments

Accept direct bank transfers online or from your back office with ACH (Automated Clearing House)—the most common form of EFT (Electronic Funds Transfer) in the U.S. Cut card fees, reduce chargeback exposure, and streamline recurring billing. Powered by the Selective Pay Gateway. 

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Why ACH / EFT?

✓ Lower Cost than Cards

Bank‑to‑bank transfers avoid interchange—ideal for larger tickets or recurring invoices.

✓ Recurring Friendly

Subscriptions, dues, retainers, tuition—collect automatically on schedule with dunning and retries.

✓ Fewer Disputes

ACH has different dispute rules than cards. With proper authorization, returns are narrower and faster to resolve.

✓ Cash‑Equivalent Option

Offer ACH as the cash price in Dual Pricing/Cash Discount programs to encourage fee‑light payments.

✓ B2B Efficiency

Supports invoices, POs, Level‑2 style fields, and remittance addenda (CTX) for enterprise workflows.

✓ Fast Funding Options

Standard next‑day/two‑day ACH and Same Day ACH (subject to bank cutoffs and risk settings).

How It Works

  1. Customer authorizes a debit from their bank (online form, payment link, invoice, or phone order with recorded consent).
  2. Bank account is verified via instant bank login or micro‑deposits to reduce returns and fraud.
  3. Funds move through the ACH network to your business account. Settlement timing depends on standard vs. same‑day processing and your risk profile.

Common SEC Codes (Authorization Types)

  • WEB — Online/website entry (consumer)
  • TEL — Phone order with verbal authorization (consumer)
  • PPD — Prearranged payment/deposit (consumer, recurring)
  • CCD — Corporate debit/credit (B2B)
  • CTX — Corporate with addenda records (B2B remittance)

ACH vs. Cards vs. Wire (At‑a‑Glance)

Feature

Typical Cost–

Speed–

Best For–

Disputes–

ACH (EFT)

Low (flat or small %)

Next‑day/2‑day; Same Day available

Invoices, recurring, B2B, large tickets

Return reasons defined (e.g., NSF, unauthorized)

Credit/Debit Cards

Higher (interchange +)

Immediate auth; funding T+1/T+2

Point‑of‑sale, e‑commerce, cards‑preferred

Chargebacks with card‑brand rules

Wire

Flat bank fee (higher)

Same‑day, final

High‑value, time‑critical, international

Generally final, limited recall

Compliance & Risk Basics

Nacha Authorizations

  • Obtain clear written/electronic or recorded verbal consent (per SEC code).
  • Present business name, amount/amount range, and timing (single vs. recurring).
  • Retain proof of authorization per Nacha rules (commonly at least two years).

Verification & Limits

  • Use instant bank verification or micro‑deposits before first debit.
  • Apply velocity limits and per‑transaction caps based on ticket size and history.
  • Enable notifications on returns and automate retries when allowed.

Common Return Codes

  • R01 — Insufficient Funds
  • R02 — Account Closed
  • R03 — No Account/Unable to Locate
  • R08 — Stop Payment
  • R10/R11 — Customer Advises Unauthorized
  • R29 — Corporate Customer Advises Not Authorized

Same Day ACH

Available for eligible transactions with bank cutoff times and dollar limits. We’ll configure schedules to meet your funding goals.

Implementation with Selective Pay

Selective Pay Gateway Features

  • Selective Pay Payment Links & simple invoicing with ACH option
  • Instant bank verification (plaid‑style) or micro‑deposits
  • Customer vault (tokens) for recurring billing
  • Dual Pricing/Cash Discount compatibility (ACH as cash)
  • Role‑based access, IP allowlists, and audit logs

Go‑Live Checklist

  • Select SEC codes you’ll use (WEB/TEL/PPD/CCD/CTX)
  • Load bank verification method and per‑user permissions
  • Configure schedules, retries, and notifications
  • Brand your invoices, payment pages, and emails
  • Train staff with a 60‑second script (see below)
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