Setting Up ACH Payments with Squarespace
TL;DR:
- ACH payments are direct bank-to-bank transfers available only in the US
- You need a Squarespace Payments account connected to a US bank
- Minimum transaction amount is $250
- Processing fee is 1% per transaction
- Payments take 4-5 business days to process
- Not available for subscription products
ACH payments offer a cost-effective way to accept larger payments on your Squarespace site. Here's how to set them up and what you need to know.
What You Need Before Starting
Your Squarespace site must have Squarespace Payments enabled and connected to a US bank account. ACH payments only work within the US banking system, so international businesses can't use this feature.
The $250 minimum transaction amount makes ACH payments best suited for higher-value products or services rather than small retail purchases.
Enabling ACH Payments
Head to your Squarespace dashboard and follow these steps:
- Go to Settings in your main menu
- Find Accept Credit Cards and More and click Manage Settings
- Select the Payment methods tab under Manage Squarespace Payments
- Toggle on ACH Direct Debit
Once enabled, customers will see ACH as a payment option at checkout for qualifying orders.
How It Works for Customers
When customers choose ACH payment, they enter their bank account details directly at checkout. The payment processes through the US banking network rather than card networks.
Customers should know that ACH payments take longer to process than card payments. Their order status will show "in progress" until the bank transfer completes, which typically takes 4-5 business days.
Fees and Processing Times
ACH payments cost 1% per transaction. For a $500 order, you'd pay $5 in processing fees compared to roughly $15-20 with most credit card processors.
The trade-off is time. Card payments process instantly, while ACH payments need several business days to clear. Plan your fulfilment process accordingly.
Limitations to Know About
ACH payments can't be used for:
- Subscription products or recurring billing
- Orders under $250
- International transactions
- Customers without US bank accounts
If you sell subscription products, customers will need to use card payments instead.
Managing ACH Orders
Check your order status regularly. ACH payments can fail if customers have insufficient funds or provide incorrect bank details. Failed payments will show as "cancelled" in your dashboard.
Unlike card payments where you know immediately if payment succeeds, ACH requires patience. Build this into your customer communication and order processing workflow.
FAQs
Can I use ACH payments with Squarespace outside the US?
No, ACH payments only work within the US banking system.
Can customers buy subscription products using ACH payments?
No, ACH payments aren't available for subscription or recurring billing products.
How long do ACH transactions take to process?
ACH transactions typically take 4-5 business days to complete.
What happens if an ACH payment fails?
Failed payments show as "cancelled" in your dashboard. You'll need to contact the customer to arrange alternative payment.
Jargon Buster
ACH (Automated Clearing House) – The US network that processes direct bank-to-bank transfers
Squarespace Payments – Squarespace's built-in payment processing system
Processing fees – The cost charged for handling each payment transaction
Wrap-up
ACH payments work well for businesses selling higher-value products or services to US customers. The 1% processing fee beats most card payment rates, but the longer processing time means you need to adjust your fulfilment workflow.
Set clear expectations with customers about processing times, and keep an eye on order statuses to catch any failed payments quickly.
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