If you only look at the sticker fee, you’ll miss where payment costs actually pile up. This guide gives you a simple calculator framework to quantify your true total cost of ownership (TCO) across ACH and cards, then shows how to reduce it—often dramatically—with $0 ACH pulls and $0 debit transactions on Liftoff Platform.
What your ACH/Card calculator should include (not just the fee)
1. Direct processing fees
◦ ACH per-transaction + monthly/platform fees
◦ Card interchange + assessments + processor markup
2. Returns & disputes
◦ ACH returns (rate × cost per return + write-offs)
◦ Card chargebacks (rate × fee + refund loss + labor)
3. Fraud & loss
◦ Friendly fraud, account takeover, unauthorized pulls
4. Operational minutes
◦ Reconciliation, exception handling, support tickets (minutes × cost/hour)
5. Cash timing
◦ Days to settle × cost of capital (ACH batches vs RTP vs card funding)
6. Conversion/churn effects
◦ Authorization rates, card churn vs stable ACH for recurring
The cheapest rail on paper isn’t always the cheapest rail in practice—your calculator needs all of the above.
Inputs (copy/paste this checklist)
· Volumes: # ACH tx/month, # card tx/month
· AOV: avg ticket (ACH), avg ticket (card)
· Rates: ACH return rate; card chargeback rate
· Fees: ACH ($/tx), card (% + $), monthly/gateway fees, chargeback fee ($)
· Ops: minutes/exception, hourly cost
· Loss: average write-off per failed/charged back tx
· Capital: cost of capital (%/year) and days held
· Conversion: approval % (card), completion % (ACH) for your flows
The quick formulas (plain English)
· Direct fee cost = (ACH tx × ACH fee) + (card tx × (AOV × % + $)) + monthly fees
· Return cost (ACH) = ACH tx × return rate × (return fee + write-off + ops minutes×$ per minute)
· Chargeback cost (card) = card tx × cb rate × (cb fee + write-off + ops minutes×$ per minute)
· Ops cost (other) = (total exceptions per month × minutes × $ per minute)
· Cash-timing cost = (AOV × tx count × days outstanding ÷ 365) × cost of capital
· TCO = direct fees + returns/chargebacks + ops + cash timing − (conversion lift revenue)
When you switch rails (e.g., card → ACH for recurring), include revenue impact from higher completion and lower churn.
Worked example (round numbers)
Assume per month:
· 10,000 ACH tx; AOV $120; ACH fee $0.25; return rate 1.5%; return fee $5; write-off $8; 8 mins/return; $30/hr labor
· 5,000 card tx; AOV $120; blended card fee 2.9% + $0.20; cb rate 0.6%; cb fee $25; write-off $40; 20 mins/case; $30/hr
· Cost of capital 10%; ACH settles T+1.5 days avg; cards fund T+2
· Monthly platform fees: $500
ACH direct fees: 10,000 × $0.25 = $2,500
Card direct fees: 5,000 × ($120×2.9% + $0.20) = 5,000 × ($3.48 + $0.20) = $18,400
Monthly fees: $500
ACH returns: 10,000 × 1.5% = 150 returns
· Ops: 150 × 8 min × ($30/60) = $600
· Hard costs: 150 × ($5 fee + $8 write-off) = $1,950
· ACH return total: $2,550
Card chargebacks: 5,000 × 0.6% = 30 cases
· Ops: 30 × 20 min × ($30/60) = $300
· Hard costs: 30 × ($25 fee + $40 write-off) = $1,950
· Card CB total: $2,250
Cash-timing cost (simplified):
· ACH: ($120×10,000 × 1.5/365) × 10% ≈ $493
· Card: ($120×5,000 × 2/365) × 10% ≈ $329
· Timing total: $822
TCO subtotal:
· Fees $2,500 + $18,400 + $500 = $21,400
· Exceptions $2,550 + $2,250 = $4,800
· Timing $822
· Grand total ≈ $27,022 / month
Now imagine switching recurring collections to $0 ACH and one-off invoice card payments to $0 debit (with lower dispute cost via prevention). The direct fee line collapses and exceptions drop with validation/reminders/retries.
Where the savings usually come from
· $0 ACH pulls (collections) → remove the per-transaction expense
· $0 debit transactions (invoice one-offs) → keep customer choice without fee drag
· Account validation + reminders + smart retries → fewer ACH returns (R01/R09)
· Invoice e-payments with one-click pay → faster completion, fewer tickets
· Chargeback prevention (Ethoca/Verifi/RDR) → fewer card disputes and labor
· RTP for payouts/credits → improve CX and shrink timing costs when it matters
Make it real: plug in your numbers (5-minute exercise)
· Export last month’s ACH + card counts and average ticket
· Pull return/chargeback rates and fees per event
· Estimate minutes per exception and hourly loaded cost
· Choose a cost of capital (or ask Finance)
· Run the formulas above for your current setup
· Re-run with $0 ACH/$0 debit and Liftoff’s validation, reminders, smart retries
· Compare TCO now vs TCO with Liftoff → that delta is your monthly/annual savings
Want a done-for-you version? We’ll generate a one-page TCO report from your last month’s counts.
Why Liftoff Platform is best-in-class for lowering TCO
· $0 ACH pulls & $0 debit transactions on collections and invoice payments
· Invoice automation: one-click pay, reminders, recurring schedules, auto-recon
· Risk stack: KYB/KYC, OFAC, account validation, velocity rules, audit trails
· Return-code rules & intelligent retries to reduce NSFs without more headcount
· Chargeback prevention (Ethoca, Verifi/RDR) + AI evidence when you must fight
· RTP disbursements 24/7/365; Same Day ACH when cutoffs apply
· Portal + API with webhooks; dashboards for DSO, returns, blended $/1k, cohorts
Bottom line: Use the calculator to reveal your real costs—then let Liftoff erase the biggest line items and smooth the rest.
Implementation checklist
· Turn on $0 ACH/$0 debit for collections/invoices
· Enable account validation, pre-debit reminders, smart retries
· Add invoice links everywhere you bill (email/SMS/portal)
· Wire webhooks to your GL/ERP/CRM for auto-reconciliation
· Pilot RTP for payouts/instant credits
· Review dashboard weekly; trim the exceptions driving cost
Summary
· Your ACH/card TCO = fees + returns/chargebacks + ops minutes + cash timing (minus conversion gains).
· A simple ach fee calculator should account for all of that—not just sticker rates.
· Liftoff slashes TCO with $0 ACH, $0 debit, validation, reminders, retries, and chargeback prevention—plus invoice automation and RTP.
FAQs
Is ACH always cheaper than cards?
On fees, yes; on TCO, usually—especially with $0 ACH and fewer returns from validation/ reminders/retries.
What if my customers prefer cards?
Keep cards as $0 debit for one-off invoices while routing recurring collections to ACH.
Can I estimate savings without sharing data?
Yes. Start with the worked example and adjust volumes/rates; when you’re ready, share last month’s counts for a precise model.
How fast can we deploy?
Portal launch in minutes; API/webhooks when you’re ready. Most teams pilot in a week, then expand.