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SMS Payment with ACH

May 1, 2021 in Marketing

SMS Payment with ACH

WikiPro SMS payment solution is a huge hit. It allows business owner to get paid faster, it is contactless, and it is hassle free for business owners and customers.

WikiPro’s text to pay includes the payment by credit card, debit card. We are pleased to announce the support of ACH (Bank transfer) for our SMS payment platform.

What is ACH?

ACH (Automated Clearing House) is a network used for electronically moving money between bank accounts across the United States. Payment processing via the ACH network has existed since the 1970s.

What is SMS Payment?

SMS Payment allows businesses to get paid by SMS. It is simple: you send a text and get paid. As a business owner, it is very important to get paid quickly once a deal is closed. SMS payment enables the fast payment as SMS is the quickest way to get a response from customers.
How it works:
  1. Business sends out invoice with company office number. Note we can enable the office landline number for texting. So your customers know the invoice is coming from your business.
  2. Customers click the payment link in sms. Because SMS has 95% open rate comparing with 20% email open rate, and response time is within minutes. Business can get payment much quicker.
  3. All invoices and payments are under WikiPro dashboard. Send and review payment status on your mobile device.
text to pay

Why SMS payment with ACH?

Short answer: Save money!

SMS payment or text to pay is the quickest and easiest way to get paid for businesses. ACH has the lowest transaction fee.

Credit card transaction fee:

2.9% + $0.3. It costs 2.9% of the total amount plus 30 cents.

ACH Transaction fee:

0.8% and maximum fee is $5. The fee is 0.8% of the total amount with maximum fee of $5.

See the following table for the card vs. ACH fee difference:

Amount Credit Card Fee ACH Fee Fee Savings Fee Savings (%)
50 $1.75 $0.4 $1.35 77.1
100 $3.2 $0.8 $2.4 75
200 $6.1 $1.6 $4.5 74.7
300 $9 $2.4 $6.6 74.3
400 $11.9 $3.2 $8.7 73.1
500 $14.8 $4 $10.8 72.9
600 $17.7 $4.8 $12.9 72.8
700 $20.6 $5 $15.6 75.7
800 $23.5 $5 $18.5 78.7
900 $26.4 $5 $21.4 81
1000 $29.3 $5 $24.3 82.9
1200 $35.1 $5 $30.1 85.7
1400 $40.9 $5 $35.9 87.7
1600 $46.7 $5 $41.7 89.2
1800 $52.5 $5 $47.5 90.4
2000 $58.3 $5 $53.3 91.4
3000 $87.3 $5 $82.3 94.2
4000 $116.3 $5 $111.3 95.7
5000 $145.3 $5 $140.3 96.6
10000 $290.3 $5 $285.3 98.2

The fee difference is huge. For a $1000 charge, business owners can save $24. For $5k charge, the savings is $140. The saving is $285 for $10k charge.

Here is another chart on the fee savings percentage.

ACH Savings

The only draw back to ACH is that the ACH payment can take up to 5-7 business days to receive the fund. For credit card payment, customers enter the credit card, expiration and CVV to the SMS payment link, the payment is completed immediately and typically business can receive funds the next business day.

SMS payment with ACH steps:

1. Business owner sends payment request for ACH. If the amount is bigger and you can afford the wait, check the Bank (ACH) payment method.

2. Customer enters bank routing number and bank account

sms payment bank ach

3. System sends two micro-deposits to the customer bank in 1 to 2 business days.

4. Customer enters the micro-deposit amounts to the payment link to verify the bank account. The two deposits amount must match for verification to go through.

5. The payment will be completed within 5 business days.

Note step 2 to step 4 are only required for the first time. If the bank account is saved into the system, there is no need to repeat step 2 to step 4. It can take up to one week to receive the payment from customer. It takes about 2 business days to receive the fund for credit card transaction.

For any transaction above $500, the credit card transaction fee is much higher than ACH fee. So it may worth the wait for a few extra days for the fund to be received via ACH. If the transaction is recurring, the cost saving for ACH is much bigger.

After all, it is still a personal preference to choose either credit card or ACH. WikiPro provides the most complete solution for business owners to text, engage and convert.

Send a text to 626-243-2796 for a free demo.

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