What is ACH
ACH is a batch‐processing system run by NACHA (the National Automated Clearing House Association) that settles debit and credit transactions (like payroll direct deposit, bill pay, recurring payment, etc.) between U.S. banks. It’s widely used for one time or recurring transfers, and is known for its cost efficiency and security.
How the ACH Network works
- Authorization
- The account holder (the donor) grants permission via an online authorization when linking their bank account details during checkout for the merchant to initiate debit against their checking or savings account.
- Submission
- On the scheduled date, the originating depository financial institution (ODFI)—in this case, LaunchGood’s payment processor—aggregates all authorized debit entries and submits them in batches to an ACH operator (either the Federal Reserve or The Clearing House).
- Clearing & Settlement
- The ACH operator sorts the entries by receiving bank (the RDFI) and transmits the debits. Settlement occurs on a net basis: each bank’s debits and credits are offset, and only the net amounts are exchanged, usually within 1–2 business days.
- Funds Transfer
- Once settled, the receiving bank posts the debit to the donor’s account, and the merchant’s account is credited. Donors typically see the transaction description in their online banking statement within 3–5 business days of initiation.
ACH payment method - FAQ
What is ACH Direct Debit Payment Method
ACH Direct Debit is a secure and convenient way to make donations directly from your U.S. bank account. Instead of using a credit card, funds are pulled from your account electronically via the Automated Clearing House (ACH) network.
Can I donate using ACH Direct Debit on LaunchGood?
Yes! If you have a U.S. bank account, you can make donations via ACH Direct Debit on LaunchGood. Just choose “Bank Account (ACH Direct Debit)” during checkout and follow the steps to link your bank account.
Is ACH Direct Debit safe to use?
Yes. LaunchGood uses trusted payment partners that encrypt and protect your banking information.
How do I link my bank account for ACH Direct Debit?
You’ll be prompted to securely connect your bank details during checkout, follow the steps and complete your donation.
Can I use ACH Direct Debit to donate from outside the U.S.?
The ACH network only supports U.S based bank accounts. To donate via ACH Direct Debit, you must have a checking or savings account at a U.S. financial institution. If you live abroad but maintain a U.S. bank account, you can link that account and donate via ACH as usual. Otherwise, please choose an alternative payment method.
How long does it take for an ACH Direct Debit donation to process?
ACH Direct Debit donations typically take 3–5 business days to clear. You’ll receive a confirmation email after the submission and once the payment is successful.
Will I receive a receipt for my ACH Direct Debit donation?
Yes. A donation receipt will be emailed to you after donating to any campaign on LaunchGood. You can also find your receipt under "Donations" in your LaunchGood profile. Please note that receiving a donation receipt does not necessarily mean the transaction has been successfully processed or cleared.
What is an ACH Direct Debit chargeback (or return)?
A chargeback or return occurs when a transaction is reversed after the account owner disputes or cancels an ACH payment. This could happen due various reasons, such as unauthorized transaction, insufficient balance, stopped payment etc.
Why would my ACH Direct Debit donation be returned?
Common reasons include but not limited to:
- Insufficient funds
- Invalid or close bank account
- Unauthorized transaction
- Stop payment placed by donor
- Technical or account setup errors
How long after donating can a chargeback occur?
Depending on the reason, ACH chargebacks can happen within 2 to 60 days.
What happens to the campaign if a donation is returned?
If your donation is charged back, it means our payment processor was unable to complete the transaction. Therefore, the donation will not be credited to the campaign. If you have questions about the reason for the chargeback, please feel free to contact our support team or reach out to your bank for more information.
What should I do if I see an unauthorized ACH Direct Debit donation?
Contact your bank immediately to dispute the transaction, and let us know at support@launchgood.com. We take unauthorized activity seriously and will work with you to resolve it.
Can chargebacks affect my LaunchGood account?
Yes. Multiple chargebacks or disputed transactions may lead to temporary restrictions on your account in order to prevent potential misuse and maintain the security of our platform.
Key points about ACH Direct Debit
- It only works with U.S. checking or savings accounts.
- Donors authorize a transfer by linking their bank account details to their LaunchGood profile.
- Transactions typically clear in 3-5 business days.
If you still have questions or need help with anything related to ACH donations, we're here for you. Just reach out to us at support@launchgood.com—we’ll be happy to assist, inshaAllah.