Taking Money From Clients by ACH and Wire Transfers

We operate globally and so to keep our costs down we have pretty tight control on our credit card payment processing. To pay us not only must you have a CVV code match with your credit card but an AVS X and Y match. That means that the street name and zip code must match what is on file with your credit card company.

For some global clients this has caused problems when there bank does not support AVS matching. This is where a wire transfer may be preferable. But how is a wire transfer different from an ACH or direct deposit transaction. A wire transfer is done by the paying party – the client. You the business owner supply your bank address, routing number and account number. The payee, the client, then goes to their bank and processes the transfer. The client will typically be assessed a currency transaction charge and other fees. Here in Maryland for me to send a wire transfer my bank charges me $60. For me to receive a wire transfer my bank charges a $12 fee even if the sending party has said they will pay all charges. Wire transfers are safe to do and my bank says that they are one way transactions into my bank account, meaning that the client cannot withdraw money from my account after I have shared my account information.

Now ACH is different. I am very careful who I allow ACH access to my checking account. I have one long term client and my credit card processing companies. With ACH it is possible for a party to remove money from your account tht you have not authorized. I found out however if you as a business report a fraudulent ACH withdraw in two days, you will get your money refunded to you and the bank where the fraudulent charge originated from will have to collect the money back from their client which originated the charge. Good reason if you allow ACH access to your checking to be vigilant in regards to reviewing account transactions daily or every other day.

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