What is ACH? And Why should I use it for Payments?

An ACH transaction (sometimes called ‘direct debit’) is an electronic money transfer made between banks and credit unions across a network called the Automated Clearing House (ACH).  

What is ACH?

  • ACH is a safe, secure payment method which directly connects to your provided bank account, much like a debit card.
  • ACH is a service provided by the US Government and is what powers most payroll Direct Deposit and is commonly used in peer to peer payments services like Venmo and Cashapp. 

Why ACH?

Did You Know? Most large recurring bills (like Rent, Mortgage, Payroll) use ACH to facilitate fast effective payments. You're likely already using this technology to send and receive money to/from your friends, your job, and your bank. 

  • At Flexcar, we pride ourselves on providing great vehicles at a competitive price, and decreasing payments processing fees by moving to ACH allows us to offer Flexcar at the best prices to our members. 
  • Free up your credit card spending limit and help improve your credit score by lowering your card usage.
  • ACH reduces the need to update your payment methods frequently! An average bank account remains open for 14 years, and wont have expiration dates like credit cards normally do.

How does the fee work?

  • Customers can avoid the 3% fee by adding ACH as a payment method on their account.
  • For New Customers: You will receive a communication prompting you to add a bank account and enable ACH payments. You will not be charged a 3% fee for your initial order or trial membership. It will not apply until your first monthly renewal.
  • For Existing Customers (As of 7/31): Fees for monthly or membership renewals will not be applied for those charges occurring before August 15th 2024.

How can I set this up?

Setup is quick and easy! All you need to provide is:

  1. Name
  2. Account Number
  3. Routing Number
  4. Billing Address

Sample Form in your Flexcar account screen:

 

Please Note: This is a phased rollout so if you do not see this payment option today, don't be alarmed. The option will show up in your account soon!

Was this article helpful?
50 out of 71 found this helpful