What is an ACH Payment?

ACH is short for Automated Clearing House. An ACH payment is an electronic debit or credit transfer that allows vacation home rental customers to make payments from their bank accounts. Many vacation rental properties prefer to accept ACH payment rather than debit and credit cards. In turn, many renters choose to pay with check online.

ACH Payment Processing for Vacation Rental Properties

ACH payment processing utilizes advanced technologies to allow vacation rental properties to accept ACH payments online. Payment processors are merchant-appointed companies that handle ACH payment/eCheck processing. The time saved gives vacation rental properties a chance to avoid the hassle of paper checks and concentrate on the things that matter, like running their business.

VacationRentPayment: ACH Payment in Check Dominated Industries

VacationRentPayment brings you the convenience of electronic payments, including ACH payment processing options. We stand out from our competitors thanks to our innovative API payment solution and our broad vertical expertise and experience. When you partner with VacationRentPayment, you can rest easy knowing that your ACH payment processing is well covered.

How does ACH Payment/eCheck Processing Work?

ACH payment processing happens in a moment or two yet there are various steps that need to occur to ensure a successful transaction:

Step 1: Guest Initiates Online Payment Using ACH Payment Method

The guest decides to pay for a vacation rental via VacationRentPayment; selects ACH payment from a list of online payment methods; and provides information such as name, checking or savings account number, and bank routing number. When payment is submitted, the backend processes initiate.

Step 2: Payment Gateway & Merchant Account

VacationRentPayment’s front end interface for ACH payment processing of eChecks (the payment gateway), sends the transaction details (name, checking or savings account number, routing number, and the amount) to its merchant acquirer, also known as the payment processor.

Step 3: Payment Processor & ACH Network (A)

The payment processor (merchant acquirer) validates payment details by giving its bank, also known as the Originating Depository Financial Institution (ODFI), the job of sending them through the Automated Clearing House (ACH) network via an ACH file. Details are then sent to the vacation rental customer’s bank for verification.

Step 4: Guest’s Originating Bank

The vacation rental customer’s bank validates or denies the transaction based on the accuracy of the information. The bank sends the ACH file back to the ACH networks, and if the payment is approved, the guest’s bank transfers the funds to the ACH network less the interchange fees.

Step 5: Payment Processor & ACH Network (B)

The ACH network forwards the transaction details and the approved/denied status back to the payment processor and transfers the funds via the ACH file less the assessments charge. In good faith, the payment processor’s merchant acquiring bank sends money to the payment gateway to be processed. The processor tries to complete the direct payment transaction via ACH debit or ACH credit and waits for reimbursement from the vacation rental customer’s bank. Depending on processing time, it can take up to five business days to clear. The Electronic Payments Association, formerly known as the National Automated Clearing House Association, requires ACH credits to be settled in one or two business days and ACH debits on the next business day.

Because fund verification is not immediate, the payment processor bears the risk of insufficient funds. In that event, the vacation rental customer’s bank, which usually credits the merchant acquiring bank, calls the funds back and assesses a non-sufficient funds (NSF) fee. The payment processor then charges the payment gateway who charges the merchant who, in turn, passes the fee to the customer. The NSF fee charged to the payment processor is separate and independent of the NSF fee charged by the bank to the guest.

Step 6: Payment Gateway & Merchant Account (B)

VacationRentPayment’s payment gateway sends the transaction approved/denied status to the guest via the online payment interface. If ACH payment is rejected, VacationRentPayment’s payment gateway sends the information back to the site and ACH payment processing is halted.

Step 7: Payment Via Merchant Receiving Bank

Now, the funds are ready for transference from the merchant acquiring bank account, known as the Receiving Depository Financial Institution (RDFI), to the vacation home rental property’s bank account. Due to the fact that they are a partner and have a sub-merchant account with VacationRentPayment, the payment gateway disburses the net payment into their bank account. Upon completion of ACH payment processing, the vacation rental customer receives notification that payment was succesful and is shown a confirmation screen. A receipt is emailed to the customer and reports are updated in real time indicating that an ACH payment has been processed.

Why Accept ACH Payments with VacationRentPayment

VacationRentPayment sees you as a valued partner more than a customer. We understand that building a relationship with you is to our mutual benefit. Working together, we benefit from your valued business, and you benefit from our vast industry expertise in using online payment methods for collecting vacation rental charges.

Vacation rental properties of all sizes accept ACH payments using VacationRentPayment. Considering we processed millions of ACH payments in the last 12 months, we really are well on our way to changing the way the world pays.