Learn more about what check types to select when submitting a PAYA application for a merchant using iQ Pro.
PAYA Application – ACH Check Types
PAYA Application - ACH Check TypesChecks By Web
- If the customer is inputting their own ACH information
- Accept customer-initiated debit payments online for Bill Pay or eCommerce
- Bill Pay – refers to transactions from customers with whom the merchant has an established relationship or agreement
- eCommerce – customers initiate debit payment for products or services purchased from the merchant’s website
- eCommerce has a pass-through % cost and a higher transaction fee than Bill Pay
- For Example: Customer initiates a transaction through the merchant’s website, Simple Pay Link, or through the iQ Pro Gateway features such as Invoicing and Shopping Cart
ACH Debit/Credit (CCD/PPD)
- If the merchant is inputting their customer’s ACH information
- ACH Debit and Credit enables merchants to set-up authorized single or recurring billing payments from a checking account
- Single Billing – Process a one-time debit or credit transaction to consumer or business accounts
- Recurring Billing – Process debits and credits to a consumer or business account on a scheduled recurring basis
- Used for the Virtual Terminal, Recurring Billing, and Customer Vault ACH Payment Method
Checks By Phone (Tel)
- If the merchant is receiving the customer’s ACH information over the phone
- For Example: The customer calls the merchant to make a check payment by phone
- Used for the Virtual Terminal, Recurring Billing, and Customer Vault ACH Payment Method
Important Notes:
- If merchant opts for Guarantee, they must obtain checkwriter’s authorization according to Paya’s guidelines. Failure to provide proof of authorization to PAYA voids the Guarantee.
- The guaranteed program has a fee of 3.99% on each transaction. Approved checks are guaranteed to be funded. This means if an approved check is returned, the merchant will not see that amount debited from their account. Sage assumes the responsibility of collecting from the checkwriter.
- The verification program has no percentage fee on each transaction. If an approved check is returned, it is resubmitted to attempt collection. If successfully collected, the merchant is again credited for the full amount of the check. If uncollected, it would be the merchant’s responsibility to collect funds from the checkwriter.
- If merchant signs up for Checks-by-Phone, you should also set them up ACH Debit so the merchant can issue refunds. There is no additional cost for ACH Debit. PAYA calculates the monthly minimum cost only once per account.
- If merchant signs up for Checks-By-Web, you should also set them up ACH Debit so the merchant can issue refunds. There is no additional cost for ACH Debit. PAYA calculates the monthly minimum cost only once per account.
- If the merchant will use Simple Pay or if they want to accept checks through their website, they will need Checks-By-Web.
- If the merchant will use the virtual terminal and Simple Pay to process check transactions, they will need both ACH Debit and Checks-By-Web.
Please use the following link to access the PAYA application:
What Happens After the Application is Submitted to PAYA?
- Once the application is submitted and approved, PAYA will provide a VAR Sheet for each Check type (Web, CCD, PPD, Tel)
- Then, the check processor is added to the merchant’s iQ Pro Gateway with a separate TID for each check type (Web, CCD, PPD, Tel)
For more information on PAYA ACH services, please see the links below:
Checks-by-web. Merchants are provided the capability of accepting and processing checks over the web. The consumer is able to initiate a check payment on the merchant’s website or payment gateway.
ACH debit and credit. Paya Services allows customers to process single and recurring authorized ACH debit and credit transactions from the checking account of consumers or businesses.
Paya Services enables merchants to accept and process checks from customers over the phone. The merchant can initiate transactions through a web-based virtual terminal, certified 3rd party payment gateway, web services API, or batch file upload.