What is an ACH Payment and Why churches love them for Online Giving
Churches receive charitable donations in many different forms. These donations can be cash, check, wire transfers, credit & debit cards, and ACH payments. In this article, we're going to cover what ACH is, the cost of accepting ACH payments, and show why so many churches are encouraging their donors to give exclusively through ACH.
What are ACH Payments?
ACH (Automated Clearing House) payments are a type of electronic bank-to-bank payment/transfer. Payments via ACH are made through the National Automated Clearing House Association, instead of going through card networks like Visa or Amex. ACH payments have been around since the '70s, and are only available within the United States.
Who can pay with ACH?
In short; everyone. Whether you're a business or an individual, you can send money through an ACH transfer to any individual or business bank account. All you need is the routing and bank account number to send an ACH payment. ACH payments have been popular for decades when it comes to sending money from one person/business to another.
ACH VS Credit Card for Online Giving
When it comes to Online Giving for churches, ACH and Credit/Debit Cards have their pros and Cons...
Credit/Debit Giving
- Pro: Transactions happen instantaneously
- Pro: Most people have a credit/debit card
- Pro: People pay with credit cards almost daily
- Con: Credit cards have transaction fees ranging from 2-3%
- Con: Credit cards have expiration dates
ACH Giving
- Pro: Anyone with a US bank account can give
- Pro: Most people already pay some of their bills with ACH
- Pro: ACH payments through ChurchTrac Online Giving have a low 25 cent flat rate
- Con: ACH payments take roughly 5-7 business days to process
- Con: Individuals giving as a guest cannot give via ACH
Which payment method should my church accept?
If we had a quarter for every time a church asked this question, we could buy a sweet new coffee machine for our staff office! 😋☕️ In all seriousness though, we recommend both. Here's why...
When it comes to donors that give one time (think guests and out of towners), a credit or debit card is the easiest way for them to give. They can easily scan your Church Connect QR code and donate online in under 90 seconds. For those guests that have their credit card already stored in their phones, this process is even faster.
As far as your members that give regularly, ACH is best due to the low flat rate of only $.25 per donation. Once they obtain their bank acct and routing number, they can easily give online from any device.
Takeaway
Churches ❤️ ACH payments and they're quickly becoming the preferred method of giving for their regular attendees. With features like recurring ACH donations and the ability to give easily from a smartphone, there's never been a better time to implement ACH donations.
Not using ChurchTrac for Online Giving?
You can start accepting ACH donations through ChurchTrac today. Click HERE to get started. Not a ChurchTrac User? Start your Free Trial and see why thousands of churches trust our ChMS for accepting online donations, church giving statements, and more!