When a customer pays with Pay by Bank, a small processing fee is deducted from your deposit. This is standard practice across all electronic payment methods — the same way credit card processing fees work. This article explains what the fees cover, how they're calculated, and why the economics of Pay by Bank make the fee well worth it.

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Pay by Bank fees are a percentage plus a flat dollar amount per transaction, deducted at the time of settlement — meaning they come out of your deposit automatically. You're only charged when a transaction actually occurs. There are no monthly fees, no setup fees, and no hidden charges.

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Processing fees are a cost of doing business with electronic payments — but Pay by Bank consistently delivers a return that far outpaces the fee. Customers who pay with Pay by Bank spend significantly more than customers who pay with cash.

Here's how that math works for a store with a $50 average order value:

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Some payment providers allow merchants to pass processing fees on to customers as a surcharge. While that's technically an option, we strongly recommend against it for Pay by Bank — and here's why.

Pay by Bank's biggest advantage is that it makes checkout faster, simpler, and fee-free for the customer. That's the experience that drives the 25% higher spend and the repeat visits. The moment a customer sees a surcharge added at checkout, that advantage disappears — and you're likely to see adoption drop.

There's another reason the fee is worth it: Dutchie covers your losses on ACH returns. If a customer's bank payment fails or is returned — for insufficient funds or any other reason — Dutchie absorbs that loss, not you.

This protection is built into the fee you're already paying. The processing fee covers the infrastructure, the next-day deposits, and your return risk — all in one. Coverage applies to orders that were successfully finalized at the register. Keeping the customer experience fee-free on their end means more Pay by Bank usage, which means more transactions protected under that coverage.

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Cash has no processing fee, but it comes with its own costs — in time, risk, and lost revenue.

• Lower average spend — customers naturally spend more when they're not limited by the cash in their wallet.
• Manual reconciliation — counting, balancing, and depositing cash takes staff time and introduces errors.
• Security risk — cash on premises is a liability. Digital payments eliminate that exposure entirely.
• Slower checkout — making change and counting cash takes longer than a QR code scan, especially during peak hours.
• Limited reach — customers who prefer digital payments may choose a competitor who offers that option.