Getting Started

Building Blocks

Subscription Features

Localization

Invoices

Credits

Billing Features

Taxes

Payment Methods

Direct Debit Payments

Configuring Gateways

Fraud Management

Hosted Pages

Attach Additional Data

Migration

Open Source Resources

Other Features

API Integration

Third Party Integrations

ACH Payments via Authorize.Net 

If you want to start accepting payments via ACH with Authorize.Net, you've come to the right place! This document will help you configure your settings on the Chargebee web interface and the Authorize.Net web interface so you can get your direct debit payments up and running ASAP.

Prerequisites 

To be able to accept ACH payments using Chargebee,

  • You must be a US based merchant selling to customers in the US.

  • You must have an Authorize.Net account configured in Chargebee

  • Your account must be enabled for eCheck.Net  processing by Authorize.Net

Note

Chargebee does not support ACH as a payment method option on the checkout page.

Configuring ACH payments in Chargebee 

After configuring your Authorize.Net account with Chargebee and once your Authorize.Net account has been enabled for eCheck.Net processing, follow these steps to configure ACH Payments in Chargebee.

Allowing customers to pay via their bank accounts

Go to your Configure Authorize.Net gateway page, and enable the Allow customers to pay via their bank accounts option.

Authorization:

National Automated Clearing House Association (NACHA), as well as federal legislation mandate that you should have an Authorization Agreement with your customer to charge their bank account. When customers choose to pay via their bank accounts and enter their bank account information, an authorization agreement is displayed by Chargebee.

A sample Authorization Agreement is as shown:

Enter the name, email address, and phone number that you'd want to be displayed in the Authorization Agreement.

Once this is done, you can start collecting payments via ACH.

However, to allow customers to pay via their bank accounts, you will have to enable the Allow this customer to pay via his/her bank account for them from your end. This option is available while creating/editing a customer as shown:

The ACH workflow with Chargebee 

When customers choose to pay via ACH, they will have to provide their bank account information.

The following information is captured as part of an ACH transaction:

  • Customer's Name as per Account
  • Name of the Bank
  • Type of Account
  • Bank Account Number
  • The Bank's nine digit Routing Number

After customers accept the Authorization agreement, and confirm their payments, Chargebee initiates a payment by routing this order information to Authorize.Net.

After performing certain basic validation checks on the transaction, the information is taken as an ACH request.

When the transaction is accepted, Chargebee generates a Payment Due invoice with the tag Payment Initiated as shown:

After the funds are transferred from the customer's bank account and the payment is received, the invoice is marked as Paid.

If the payment fails, due to certain errors such as insufficient funds, the invoice is marked as Not Paid. Find more information on behavior of invoices here.

Note

Automatic retries are not applicable for payments made via ACH. If a payments fails, the invoice is marked as Not Paid. You can manually collect a particular due invoice, if needed.

Adding/Updating bank account information 

You can add or update the bank account information of an existing customer in the following ways:

Via the Web Interface

In the Payment Method Details section for a customer of the Customer Details page, use the Add Bank Account option, you can add the bank account information on behalf of your customer.

Note

This option is available only if a payment method is not present for the customer.

Via the Customer Portal

Customers can update their bank account information by logging in to their customer portals. They can make use of this option only if you have enabled the customer portal for them.

Via Hosted Pages

Customers can add/update their bank account information via the following hosted pages:

  • Update Payment Method page - To update bank account information
  • Hosted Checkout (Existing) Page - To add their bank account information
Note

Customers can pay via their bank accounts (via the hosted pages & customer portal) only if you enable the option for them.

Email notifications 

Two types of email notifications are available for ACH payments:

Payment Initiated: To inform customers that a payment has been initiated via Direct Debit from their bank accounts.

Refund Initiated: To inform customers that a refund has been initiated towards their bank account.

Information

Additionally we would strongly recommend you enable the Subscription Renewal Reminder notification, as customers have to be given an advance notice before they are charged via Direct Debit.

Check out the email notification page for more info.

Card Payments vs ACH payments: The waiting period 

Unlike card payments, where the authorization and transfer of funds happens immediately, the authorization and transfer process has a waiting period for payments via ACH. Settlement takes about fifteen working days in total.

FAQs 

Why can't I allow new customers to pay via ACH?

It is important to understand that in the case of ACH payments, funds aren't guaranteed if a payment has been initiated. A payment needs to be authorized after it is initiated; the status of the payment is known only after it is authorized. This leaves room for fraudulent transactions in case of new users, especially because the authorization and transfer process takes up to fifteen working days.

We recommend enabling ACH as a payment method option only for customer you know and trust.

How is the waiting period handled in Chargebee?

Chargebee waits until 7-15 days to check the status of the transaction. Sometimes despite the transaction being marked as settled in Authorize.Net, there are chances of an ACH return. To eliminate any confusion, Chargebee waits until 15 days before marking a transaction as Success. After 7 days, Chargebee checks in periodically with Authorize.Net to see if there are any returns. If there are any returns (due to reasons such as insufficient funds), the transaction is marked as Failed in Chargebee.

When the request is validated and the payment is "settled" by ACH, Chargebee changes the transaction status from In Progress to Success and the invoice will be marked as Paid. More on the behavior of invoices with respect to ACH payments, here.

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