What does it mean when an ACH payment is declined because of velocity limits?

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Updated On   
Mon
14 Dec
2020
4:15 pm

If you are reading this because you have had declines because of velocity limits, read this:

This means that you have exceeded the limits you entered in your merchant account application for ACH. We get it, this isn't your fault and the whole concept is kind of confusing. If you bump into this, please contact us ASAP and we will be able to help you resolve this and re-run the payments that declined, typically the same or next day.

If you are reading this because you are filling out your ACH application and want to enter the right amount, read this:

Getting these numbers right upfront can save you some major headaches. Here's how you should be interpreting the questions you'll be asked on the application:

Debit Single Transactions Amount: This is the largest check amount you might take. For instance, if you offer people a chance to pay for the year in full and that cost is $10,500 and someone could theoretically have 4 kids enrolled at once and pay for all 4 in full, you will want to enter $42,000.

Debit Single Day Count: Is the maximum number of checks you will process in a single day. Think carefully here and error on the side of over-estimating.

Debit Single Day Amount: This is the total amount of money in checks you might process in a single day. If your tuition or installments are due on the 1st of the month, think about how many enrollees you have who will pay monthly and imagine that 70% of them pay by check. If your average charge is $100 and you have 100 customers, you might put $7,000 in there. However, if you open enrollment on a certain day and tend to have heavy enrollment and in addition to the first tuition they also pay enrollment fees and other things, please factor this into your calculation.

Debit Period Count: Is the maximum number of checks you will process in a period, which is 15 days. Think carefully here and error on the side of over-estimating.

Debit Period Amount: Is the amount of money that you will process in a period, which is 15 days. Think carefully here and error on the side of over-estimating.

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