How to Enable and Use ACH Bank Transfers with NMI

Overview:

supports bank transfers (ACH) for accounts based in the United States and Canada using the NMI payment processor. This feature provides a reliable alternative to credit card payments. Bank transfers often carry lower processing fees and experience fewer disputes than traditional card transactions.

Practical Use Case:

Imagine a service-based business that sends a high-value invoice for $5,000. Instead of paying high credit card processing percentages, the business can offer ACH. This saves the business owner money on fees while providing the customer with a secure way to pay directly from their bank account.

Instructions (Step-by-Step):

Step 1: Verify NMI Account Settings

To ensure payments can be processed, log into your NMI account.
To confirm your status, check that ACH is enabled within your NMI dashboard.
To activate this service if it is missing, contact NMI support directly and request ACH activation.

Step 2: Use ACH on Invoices

To offer this payment method to your customers, create an Invoice or Subscription.
To view the payment options, navigate to the Invoice preview. ACH will appear as a selectable payment method for your customers.

Feature Availability and Future Updates

ACH support is currently available for the following items:

Standard Invoices
Recurring Invoices
Subscriptions

We are currently working to expand ACH support to more channels and payment areas in future updates to .

Payment Experience Visuals

US Customer View: When a customer in the US opens an invoice, they will see the option to enter their bank routing and account numbers.

Canada Customer View: Customers in Canada will see localized bank transfer fields compatible with Canadian banking standards.

Payment Confirmation: Once the transfer is complete, the invoice status will update automatically.

Tracking Data: You can view the specific details of the bank transfer in your records.

FAQs

Question: What is ACH?

Answer: ACH stands for Automated Clearing House. It is a way to move money between bank accounts electronically without using paper checks or credit card networks.

Question: Which countries support ACH via NMI?

Answer: Currently, this feature is available for accounts located in the United States and Canada.

Question: Are ACH fees lower than credit card fees?

Answer: Yes, in most cases, NMI bank transfers have lower processing costs than credit card transactions, making them ideal for large payments.

Question: Why don’t I see ACH on my invoices yet?

Answer: You must enable the feature in both the Agency Labs and the Subaccount Labs. You also need to ensure ACH is active on your actual NMI merchant account.

Question: Can I use ACH for recurring monthly payments?

Answer: Yes, supports ACH for both one-time invoices and recurring subscriptions.

Question: What happens if a customer disputes an ACH payment?

Answer: ACH transfers generally have a lower dispute rate than credit cards, providing more security for the business owner.

Question: How do I know if a payment was made via ACH or Credit Card?

Answer: To check the payment method, navigate to the Payments > Transactions tab. The transaction detail page will list the specific payment method used.