A notice from your ACH or check guarantee provider announcing a rate or fee increase deserves more than a quick glance.
The obvious question is how much more your business will pay. But a pricing change can also be a good time to step back and evaluate the entire program.
What are you paying today? What protection are you receiving? Have other fees changed over time? How does the approval process affect your business and customers? Does the program still meet your needs?
Before accepting new pricing, review more than the rate.
1. Understand Exactly What Is Changing
Start with the pricing notice itself.
Determine which rates or fees are changing, when the new pricing takes effect, and whether the change applies to every transaction or only certain services.
A provider may change a rate while leaving other charges unchanged. In other cases, businesses may see changes to monthly fees, minimums, service charges, or other costs.
Compare the notice with your current agreement and recent statements so you understand the actual impact on your business.
2. Look Beyond the Rate
A rate is only one part of what an ACH or check guarantee program can cost.
Review your statements for other charges, which may include:
- Monthly fees
- Monthly minimums
- Return-related fees
- Equipment costs
- Other service-related fees
Different providers may structure and describe their fees differently, which is another reason to review the complete statement rather than comparing rates alone.
Looking at several months of statements can provide a clearer picture than evaluating a single month or focusing only on the rate being changed.
The goal is to understand your total program cost before deciding whether the new pricing remains competitive for your business.
3. Review Your Contract and Renewal Terms
A pricing notice is also a reason to revisit the agreement you originally signed.
Look at when your current term ends, whether the agreement renews automatically, and what notice may be required if you decide to make a change.
You should also determine whether the pricing change affects any other terms of your agreement.
Understanding those provisions gives you time to ask questions, compare alternatives, and make an informed decision.
4. Understand What Your Guarantee Covers
Price should not be evaluated separately from protection.
If your business uses guaranteed ACH or check guarantee, understand which transactions qualify for guarantee coverage and what requirements must be met.
Ask questions such as:
- Which transactions are covered?
- Are there transactions that are not eligible for guarantee?
- What happens when an eligible payment is returned?
- Are there procedures your business must follow to maintain coverage?
A lower price may not provide better value if the coverage does not meet the needs of your business.
5. Consider the Approval Experience
The approval experience can matter alongside price.
A declined transaction can create more than a payment issue. It can require additional employee time, limit the customer's payment choices, and affect the customer experience.
Consider how often transactions are declined and what happens when they are. Frequent declines can create additional friction for both employees and customers.
Price matters, but so does the overall approval experience.
6. Evaluate the Customer Experience
Your ACH or check guarantee program affects your customers too.
Consider what happens when a customer is ready to pay. Is the process easy to understand and complete? Can customers pay remotely when needed? Does the process create unnecessary steps for employees or customers?
For ACH, the way customers provide their bank information can also affect the experience. Open banking, for example, can allow customers to securely connect their bank account rather than manually entering routing and account numbers.
A pricing review is a good opportunity to determine whether the experience you're paying for still meets the needs of your business and customers.
7. Compare More Than Price
Receiving a fee increase doesn't automatically mean you should change providers.
It does mean you have a reason to evaluate whether you're still receiving appropriate value for what you're paying.
When comparing your current provider with another option, look at the complete program:
- Total cost
- Contract and renewal terms
- Guarantee coverage
- Approval experience
- Customer experience
- Service and support
A lower rate alone doesn't necessarily make one program less expensive or better suited to your business. Comparing the complete offering gives you a better basis for making a decision.
Use a Pricing Change as an Opportunity to Review Your Program
It's easy to treat a fee-increase notice as another piece of administrative mail.
Instead, use it as a prompt to take a closer look at your ACH or check guarantee program.
Consider what you're paying and what you're receiving in return. Then decide whether your current program still makes sense for your business.
Received a pricing or renewal notice? CrossCheck can help you review your current ACH or check guarantee program and understand how your costs, coverage, and overall program compare.
Frequently Asked Questions
What should I review if my ACH or check guarantee provider raises its fees?
Review the pricing change, recent statements, contract and renewal terms, guarantee coverage, approval experience, customer experience, and service and support. Looking at the complete program can provide a better picture than comparing rates alone.
How can I compare ACH or check guarantee providers?
Compare total program costs along with guarantee coverage, approval experience, contract terms, customer experience, and support. Providers may structure and describe their fees differently, so review the complete offering rather than comparing a single rate.
Why should I review several months of statements?
Charges can vary from month to month based on transaction activity and other factors. Reviewing several statements can help you better understand what your business is actually paying.
Why does approval experience matter when comparing guarantee providers?
Frequent declines can require employees to request another form of payment and create additional friction for customers. That's why approval experience should be considered alongside price and guarantee coverage.