ACH vs Credit Card Processing Cost Calculator

The ACH vs Credit Card Processing Cost Calculator compares the total cost of accepting credit card payments versus ACH bank transfer payments for your business. Enter your monthly payment volume, average transaction amount, number of transactions, credit card effective rate, ACH per-transaction fee, and monthly ACH fee to see which payment method costs less - with monthly and annual savings projections, per-transaction cost comparisons, and savings at different ACH adoption rates.

ACH is cheaper because it bypasses card network fees. Credit card transactions involve interchange fees (paid to card-issuing banks), assessment fees (paid to Visa/Mastercard), and processor markups - totaling 2-4% of the transaction amount. ACH transactions use the Federal Reserve's batch processing system with flat per-transaction fees typically ranging from $0.25 to $1.50, regardless of the transaction amount. For a $500 transaction, that's $0.50 for ACH vs $14.50+ for credit cards.

For most businesses, the effective credit card processing rate ranges from 2.3% to 3.5%. Flat-rate processors like Stripe, Square, and PayPal typically charge 2.6-2.9% + $0.30 per transaction. Interchange-plus pricing (offered by traditional merchant accounts) separates the actual interchange cost (1.5-3.0%) from the processor's markup (0.1-0.5%). High-risk businesses or those with high chargeback rates may pay higher effective rates.

ACH processing fees typically consist of two components: a per-transaction fee (usually $0.25 to $1.50 per transaction) and a monthly account fee (ranging from $0 to $50). Some providers also charge a monthly minimum fee or setup fees. Platforms like Stripe charge 0.8% (capped at $5) for ACH direct debits, while dedicated ACH processors like Dwolla charge $0.50 per transaction. Many banks offer ACH services for as low as $0.25-$0.50 per transaction with a small monthly fee.

Savings vary based on your transaction volume and average ticket size. For a business processing $50,000/month with $75 average transactions at 2.9% card rate, switching to ACH ($0.50/tx + $30/month) would save approximately $1,285/month or $15,420/year. The savings increase significantly for larger transactions - a $1,000 invoice costs $29.30 to process via card vs $0.80 via ACH, saving $28.50 per transaction.

A convenience fee is a surcharge added to credit card payments to offset processing costs. Some businesses charge 2-3% on card payments to encourage customers to use ACH or other lower-cost methods. This calculator shows the break-even convenience fee - the exact percentage that would make credit card processing cost the same as ACH. If you charge a convenience fee above this break-even point, cards become more expensive than ACH for your customers.

Yes, offering both payment options is generally recommended for maximum customer satisfaction. Many businesses use a hybrid approach: accept credit cards for convenience but offer a small discount (1-2%) for ACH payments, or add a convenience fee for credit card transactions. The calculator shows savings at different ACH adoption rates (10%, 25%, 50%, 75%) to help you decide how aggressively to incentivize ACH adoption among your customers.

Yes, 100% free with no signup, no account, and no usage limits. Compare your payment processing costs as many times as you need, for different scenarios and business models. All calculations run locally in your browser - no data is sent to any server.