Ask HN: What's the cheapest ACH payment processor for marketplaces?

#1

Post by apelin » Sat, May 23, 2020, 1:24 AM UTC

I am trying to figure out the cheapest way to integrate payment processor for the following use case: User1 pays User2 by $500 1-4 times a month via ACH. Platform charges subscription fee to User1.

I looked at Stripe. Looks like their only product that can power this is Connect Express which will charge: 0.8% ACH fee 0.25% transaction volume fee $0.25 transaction fee $2/m to User2 0.15% for direct debit (subscription)

This really adds up. I was wondering if anyone found a cheaper way to do this.

Re: Ask HN: What's the cheapest ACH payment processor for marketplaces?

#2

Post by kull » Sat, May 23, 2020, 3:36 AM UTC

Check Braintree

Re: Ask HN: What's the cheapest ACH payment processor for marketplaces?

#3

Post by smarri » Sat, May 23, 2020, 5:56 AM UTC

Also take a look at GoCardless

Re: Ask HN: What's the cheapest ACH payment processor for marketplaces?

#4

Post by shoo » Sat, May 23, 2020, 9:37 AM UTC

What option is cheapest will depend on volume of transaction value you expect to process. May also depend on how risky the transfers are.

For very low transaction volume your costs to set up the integration in first place may dominate the total cost, not the per transaction fee.

If you have high transaction volume you could shop around different payment providers for customised quotes.

For sufficiently high transaction volume it might be cheaper for your business to internalise some or all of the work to process the payments, but at that point you would need to be setting up systems to solve many of the problems that payment processors deal with.

Re: Ask HN: What's the cheapest ACH payment processor for marketplaces?

#5

Post by pbrumm » Sat, May 23, 2020, 3:54 PM UTC

It may take volume first. But you can negotiate with stripe to get better rates. You take on more of the risk though.

Re: Ask HN: What's the cheapest ACH payment processor for marketplaces?

#6

Post by [deleted] » Sat, May 23, 2020, 5:47 PM UTC

[deleted]

Re: Ask HN: What's the cheapest ACH payment processor for marketplaces?

#7

Post by apelin » Sat, May 23, 2020, 5:49 PM UTC

smarri wrote: post #3

Also take a look at GoCardless

Looks like they offer a subscription solution. I didn't see anything on theior website about marketplace transacations. Thanks for the suggestion.

Re: Ask HN: What's the cheapest ACH payment processor for marketplaces?

#8

Post by apelin » Sat, May 23, 2020, 5:50 PM UTC

kull wrote: post #2

Check Braintree

I appreciate it. I spoke with them earlier, they don't support payments in our industry (real estate).

Re: Ask HN: What's the cheapest ACH payment processor for marketplaces?

#9

Post by apelin » Sat, May 23, 2020, 5:52 PM UTC

shoo wrote: post #4

What option is cheapest will depend on volume of transaction value you expect to process. May also depend on how risky the transfers are. For very low transaction volume your costs to set up the integration in first place may dominate the total cost, not the per transaction fee. If you have high transaction volume you could shop around different payment providers for customised quotes. For sufficiently high transacti…

We are hoping to cut costs at the beginning where we can, before we reach high volumes. Dwolla is has interesting offers, but they have long due diligence / onboarding and approval process (30-60 days) and will lock you into a 2-3 year contract.

Re: Ask HN: What's the cheapest ACH payment processor for marketplaces?

#10

Post by apelin » Sat, May 23, 2020, 6:06 PM UTC

pbrumm wrote: post #5

It may take volume first. But you can negotiate with stripe to get better rates. You take on more of the risk though.

Thanks! That would come down the road. Looking to cut costs at the beginning :)