Dutchie's Pay by Bank (PBB) processing fees, or PBB transaction fees, are the charges that merchants incur when they process a PBB transaction. This fee covers the secure processing of the payment. It consists of a percentage plus a flat dollar amount, which is taken from each transaction during the settlement process.
What are the fees?
The fees are a % + flat $ amount per transaction deducted at the time of settlement, so from your deposit. You're only paying if you're transacting.
Why are there transaction fees for PBB?
Transaction fees help cover the costs associated with processing electronic payments and transfers between banks. These fees support the ACH network's infrastructure, making sure that transfers are secure and efficient.
What do the transaction fees cover?
- Next day ACH
- Deposits will be available the next business day.
- No monthly fee
- Unlike many services that charge a monthly fee for ACH, PBB doesn’t add any extra costs.
- Return Fees, Batch Fees, etc
- There are some additional fees linked to ACH payment processing during the transaction's lifecycle, but these fees won't be passed on to the merchant. No hidden fees here.
Why should I cover the fees when other payment providers have customers pay?
Research shows that customers often spend more when using digital payment methods rather than cash. This means that the transaction fees can be balanced out by the increase in spending.
Pay by Bank (PBB) is a great example of this; we notice a significant increase in spending when customers choose PBB. On average, there's a 25% increase in cart size compared to cash across all locations, which translates to the following:
- For a $50 Average Order Value (AOV) with cash, a 25% increase for PBB would bring it to $62.50 AOV
- PBB fees on a $62.50 order would amount to $2.12
- When you subtract the merchant fees from the increased AOV, you’re looking at an average additional revenue of $10.38 when a customer pays with PBB instead of cash
If cash doesn't have fees, why should I consider using PBB?
Relying solely on cash can limit your sales, increase security risks, and complicate account management. By accepting digital payments (i.e. PBB) in addition to cash, businesses can attract more customers, increase sales, and simplify their operations.
Let’s take a closer look at some potential downsides of being cash-only:
- Opportunity for Increased Spending:
- Research indicates that customers frequently spend more when using cashless payments, which could result in higher average transaction amounts.
- Manual Tracking:
- Handling cash transactions involves manual counting, reconciliation, and change due, which can be time-consuming and may lead to mistakes.
- Lower Efficiency and Productivity:
- Counting and depositing cash can take up precious time that could be better spent on other business tasks.
- Cash deposits can be slow and may not be readily available, which could affect your cash flow.
- Missed Opportunities:
- Not offering convenient payment options can limit a business's growth and ability to reach more customers.
- Providing multiple payment methods can give your business a competitive advantage and enhance the customer experience.