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> The banks make great fee-based money from the ACH system Confused. The companies that give me the option of ACH vs Credit Card always charge 2-3% to pay via
by gernb 4y ago
> The banks make great fee-based money from the ACH system
Confused. The companies that give me the option of ACH vs Credit Card always charge 2-3% to pay via credit card and nothing to pay via ACH. Why wouldn't they pass on ACH charges to me if they are a "great fee"?
update: I see from another link that Chase charges $0.25 per transaction so not such a great fee. But maybe across tons of charges it adds up.
- mywittyname 4y agoNot the OP. The 2-3% credit cards charge as fees are largely used to deal with fraud. There were 30 billion ACH transactions in 2021, and this number has been growing by 8%+ YoY for a while now. $0.25 a transaction is solid revenue when you consider that it's almost pure profits because fraud isn't a big issue and the computational power to manage ~100 million transactions a day is pretty modest.
- quesera 4y agoThis is true, and even more so. Medium and large ACH customers pay much less than $0.25 per entry, which reflects the security and low-risk nature of the network.