Understanding Fees and Processes for Failed eCheck (ACH) Payments
Overview
Failed eCheck (ACH) payments can incur fees and occur for various reasons, including incorrect account information. This guide explains the fees associated with failed eChecks, the reasons for payment failures, and how to resolve such errors for successful reprocessing.
Fees for Failed eCheck Transactions
Return Fee: - A failed eCheck transaction incurs a $10 return fee for each failed attempt. This fee applies when the bank declines the transaction. Failure reasons such as insufficient funds or incorrect account information will be common returns.
Processing Fee: - The standard 1% processing fee is charged for each eCheck transaction attempt. This means that even if an eCheck fails, the processing fee is still applied.
Common Reasons for Failed eCheck Transactions
A failed eCheck with an error message such as "No Account/Unable to Locate Account" often indicates issues with the bank account information provided. Common causes include:
Incorrect routing or account number entered by the client (e.g., transposed digits or extra spaces).
The account is closed or does not exist.
Details entered do not match what’s on file with the bank.