ACH (Automated Clearing House), sometimes referred to as electronic check processing, e-Check, or ECP, is an alternative to credit card payments. It is an online payment method where money is electronically withdrawn from your shopper’s bank account and then deposited into the merchant’s own bank account.
ACH/ECP transactions are monitored by our built-in fraud prevention capabilities, just like credit card transactions. This payment method is supported for US transactions.
- Boost your sales by reaching additional shoppers who do not use credit cards or other payment methods.
- Eliminate the need for paper checks and instead enable customers to provide their payment info online.
- Store shopper account information for easier repeat purchases.
- Enjoy transaction costs that are typically lower than credit card transactions.
- Reduce issues with failed payments due to failed or invalid cards, since checking accounts do not have an expiration date, and your shoppers rarely switch banks.
- Solution for B2B transactions and other payments for high-cost items where a credit card limit could be exceeded.
- Account validation ensures your shopper's bank account exists and is in good standing before we send the transaction for processing.
These are the main steps involved in processing ACH transactions:
On the checkout page, your shopper selects ACH and enters their banking information.
When your shopper submits the transaction, BlueSnap verifies that their bank account exists, is in good standing and that their account and routing numbers are valid.
- If they are valid, BlueSnap creates an invoice in pending status and sends the transaction for processing.
- If they are not valid or the account is not in good standing, an error message is displayed to your shopper and the transaction is not sent for processing.
Within 3 business days, the bank will notify BlueSnap if the payment was rejected. If BlueSnap does not receive the notification within this timeframe, the invoice will be approved.
The invoice status will update to reflect whether it was approved or rejected.
- We recommend delivering the product only after the approval has been received.
- BlueSnap Declines: We have improved our validation, making it stricter and more comprehensive. With these validations in place, there is less of a chance of rejection from the banks. You might see higher decline rates from Bluesnap, but keep in mind that these declines act as protection from a rejection fee, since the transaction likely would have been declined by the bank.
Your shopper has 60 days to dispute the debit on their account. If this occurs, BlueSnap removes the funds from your account, and the invoice status is updated to refunded. Please note that some banks might allow a longer timeframe for reversals.
Resolving payment rejections
Payments can be rejected for a variety of reasons, including insufficient funds. To resolve a payment rejection, you can provide an alternative payment method and resubmit the charge.
ACH/ECP transactions are supported in all of BlueSnap's integrations.
To process ACH transactions, make sure that you enable this payment method as described in Enabling Payment Methods.
If you are using the Hosted Payment Page, the ACH payment option automatically appears to shoppers in the US once it has been enabled.
If you are using BlueSnap's API, please see the API Guide for ACH.
BlueSnap supports subscriptions with ACH. Please note that subscriptions with ACH do not support the following:
- Plans with a billing frequency of daily or weekly
- Trial periods
- Automated retries in BlueSnap's Subscription engine
- On-demand $0 transactions
Refunds can be processed only after your shopper's account has been debited and the invoice status has changed to approved. Please note that if you request a refund while the invoice is pending (before your shopper's account has been debited), you will receive an error message informing you the transaction has not yet settled.
If a refund is requested after your shopper's account has been debited, BlueSnap will remove the funds from your account and the invoice status will update to refunded.
You may use the following bank credentials to test various scenarios.
Simulate format validation error
Simulate declined transaction*
Simulate approved transaction*
*After the initial transaction request, you will see the status change within 15 minutes.
A transaction may be returned or reversed by a bank for various reasons. The following is a list of ACH return codes, or reasons for reversal:
|R01||Insufficient Funds||Do not retry more than twice.|
|R02||Account Closed||Do not retry. Contact the customer to confirm their account information.|
|R03||No Account/Unable to Locate Account.|
(Account number does not correspond to the individual identified in the entry)
|Do not retry. Contact the customer for another form of payment or different bank account information.|
|R04||Invalid ACH Routing Number||Do not retry. Contact the customer to confirm their routing number.|
|R05||Unauthorized Debit Entry||Do not retry. Contact the customer to resolve the issue.|
|R06||Returned per ODFI’s (originator) Request||Do not retry. Contact the customer to resolve the issue.|
|R07||Authorization Revoked by Customer||Do not retry. Contact the customer to resolve the issue.|
|R08||Payment Stopped||Do not retry. Contact the customer to confirm their routing number.|
|R09||Uncollected Funds||Do not retry more than twice.|
|R10||Customer Advises Not Authorized||Do not retry. Contact the customer to resolve the issue.|
|R11||Customer Advises Entry Not in Accordance with the Terms of the Authorization||Do not retry. Contact the customer to resolve the issue.|
|R12||Branch Sold||Do not retry. Contact the customer for another form of payment or different bank account information.|
|R13||Invalid ACH Routing Number||Do not retry. Contact the customer to confirm their routing number.|
|R14||Representative Payee Deceased or Unable to Continue in that Capacity||Do not retry.|
|R15||Beneficiary of Account Holder Deceased||Do not retry.|
|R16||Account Frozen||Do not retry. Contact the customer for another form of payment or different bank account information.|
|R28||Routing Number Check Digital Error||Do not retry. Contact the customer to confirm their routing number.|
|R29||Corporate Customer Advises not Authorized||Do not retry. Contact the customer to resolve the issue.|
|R31||Permissible Return Entry|
|R34||Limited Participation DFI|
Updated 4 months ago