Cut your Processing Fees by as much as 75% with ACH

ACH services from rhinofit

Cut your Processing Fees by as much as 75% with ACH

ACH Payments

ACH payments or Automated Clearing House, is one of the largest, safest, and most reliable types of payment collection forms. This payment method uses a members account and routing numbers to deduct money from their checking or savings automatically.

Many gym owners don’t know about the financial advantages of collecting payments via ACH (E-Check). Instead they accept credit cards, which in turn allows their payment processor to tack on extra fees. Unfortunately many payment providers don’t want you to know about ACH payments. 

When you accept a credit card payment, such as Visa or MasterCard, you’re charged a percentage of a transaction rather than a flat fee. Since some processors can charge as much as 3.5% for a transaction, the fees can really add up quickly.

Why Give Away Your Hard Earned Money?

At RhinoFit, we teach our clients NOT to give away a percentage of their hard-earned money. This holds especially true for gym owners who process a lot of high-ticket transactions. With high-ticket amounts, credit card payments could cost you up to $5 a transaction. 

In contrast, you only pay a flat rate of $0.50 per transaction when you use the ACH payment option. Regardless of the ticket amount, the fee is only 50 cents per transaction. Implementing this payment option, will help to cut your processing fees by 75% or more.

An Example Of The ACH Payment Model

Below is an example of a gym owner who implemented the ACH payment option, saving $14,000 a year in processing fees.

Maximize Your Collection Rates with ACH Payments

Besides saving you money, ACH payments have a much better chance of settling successfully, compared to credit cards. Credit card transactions can be declined if a credit card is maxed out, reported lost or stolen, or if the card has expired. For this reason, credit card declines occur 4–10 times more often than ACH returns. 

After working with hundreds of businesses and analyzing key trends, we find ACH returns only occur 2–4% of the time while credit card decline rates can run 8–20%. This is why ACH is a much better method for taking payments and helps add to your bottom line. You will also save valuable time from not having to track down your clients for failed or missed payments.

Don't Leave Money On The Table

To ensure you’re not leaving any money on the table, it’s important that you retry any failed ACH payments. Successfully collected about 60% of the time on your customer’s second ACH draft, you can raise your overall revenue stream by as much as 5 – 10%

By using ACH and re-trying failed payments, you can add hundreds of dollars to your bottom line and eliminate a lot of headaches chasing down clients.

Below is example of the money you can save by implementing ACH payments using a sample size of 100 clients with an average ticket amount of $100.

Using the example above over one year, you’d save $20,070 by using ACH.

 

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