ACH vs. credit cards — picking a billing rail.
ACH (bank-account debit) and credit/debit cards both work for monthly dues. They run on different rails, charge you different fees, decline at different rates, and feel different to the member. Here's how to think about which to use.
The fee delta is real
Credit and debit card transactions cost between roughly 2.0% and 3.5% per charge depending on your processor, card type, and risk profile. ACH/EFT charges are typically a flat per-transaction fee (often $0.25 to $0.75) plus, in some cases, a small percentage capped at a low ceiling. On a $50 monthly dues run for 500 members, the card route can cost you $1,500 or more per month. The ACH route can cost a fraction of that.
Decline rates are different too
Cards decline most often for two reasons: expired card and insufficient funds. ACH declines mostly for closed accounts and insufficient funds. ACH declines tend to be slower to surface (the bank can return the transaction days later) which means you find out about a failed dues run a week into the cycle, not the same day. Plan for it: build a "returned ACH" workflow into your billing process.
What members feel
Members who set up ACH pay less attention to it. The deduction comes out of the same account every month and they don't see a card statement. That's a retention win — the friction of a declined card running through five retries and a member-service call is exactly the moment you lose them. ACH ride-alongs are smoother on average.
That said, some members refuse to give bank account info. They're not wrong — bank credentials are higher-trust than a card number. Always offer a card option as an alternative.
What we recommend
- Default to ACH/EFT for members who'll accept it. The fee savings compound.
- Offer card as the alternative. Don't force ACH.
- Build a returned-ACH workflow — clear roles for who calls the member when an item comes back.
- Use Gym Assistant's automated retry on cards (not on ACH — ACH retries can stack NSF fees).