Why are the fees different for ACH and credit card payments?

ACH Fees

ACH (Automated Clearing House) transactions is an electronic fund transfers between bank accounts. ACH transfers are a secure and cost-effective way to move money between financial institutions. An ACH transfer is often processed in batches rather than in real-time and typically takes 1-2 business days to settle after a transfer is initiated. Note: settlement status is not a final status and does not guarantee funds have cleared. ACH transfers offer lower processing cost because the Nacha network does not provide the same risk protections and immediacy of funds offered by the card brand networks. ACH processing fees are generally a fixed amount. 

Credit Card Fees

When customers use credit cards to make purchases, authorized transactions are confirmed in real-time. During the authorization period the card brands and schemes confirm cardholder information is accurate, and that sufficient credit limit is available to complete a sales transaction. These transactional services are passed to merchants and payment processors in the form of interchange and scheme fees. Included in interchange is the cost to maintain the card network and protect cardholders from fraudulent activity. At AndDone, sub merchants are charged a processing fee based on a percentage of a sales transaction to cover the cost of interchange and scheme fees.

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