Limits can be frustrating—especially when you're not expecting them. The purpose of this article is to help you understand the initial limits for ACH transactions, why they exist, and how you can apply for an increase.
Initial ACH Limits
When you complete the My Well Ministry application, we take that information and run it past our underwriting department. This department exists to help filter out organizations that may not be legit in order reduce our overall risk. This is important because it helps us continue to offer the lowest possible rates to as many ministries as possible.
Because bank account transactions are processed differently that credit cards, a part of this process is to set initial limits for ACH transactions. The limits are based on a variety of factors, unique to each merchant, based on the information provided in the application. Monthly volume, bank statements, types of transactions, and the amount requested are all a part of this process.
While we can't provide a specific number, we can tell you that we've seen approvals from $2,500, $25,000, and higher.
Understanding How ACH Limits Work
Generally, limits apply per customer for a 6 day period. So, if your limit is set to $5,000, it means each donor will be limited to a maximum of $5,000 donated for a 6 day period.
Here are some examples:
If 1,000 people all wanted to give $5,000 from 1,000 different bank accounts, that is fine. That would be $5,000,000.
If 5,000 people want to give $5,000, from 5,000 different bank accounts, that is fine. That would be $25,000,000.
If 5,000 people want to give $5,000 from 5,000 different bank accounts and 2 weeks later they all want to give from those same bank accounts, that is fine as well.
But if 5,000 people want to give $5,000 from 5,000 different bank accounts and 6 days later 1 of those people try to give anything from the same bank account, it would not be approved.
Another example, rolling 7 day period:
It is a rolling 7 day amount for any transaction against the same bank account. Example: $25,000 rolling limit
Monday the 3rd: $5,000 transaction to account ending in 1234 - Approved
Wednesday the 5th: $19,000 transaction to account ending in 1234 – Approved
Thursday the 6th: $20,000 transaction to account ending in 6789 – Approved (first transaction to account ending in 6789)
Friday the 7th: $5,000 transaction to account ending in 1234 – Not Approved Exceeds Limit (would be $29,000 total over previous 5 days on account ending in 1234)
Tuesday the 11th: $5,000 transaction to account ending in 1234 - Approved
After reading these examples, we hope it's clear that these limits impact individual donors who are giving large amounts, and not your monthly aggregate volume.
How Can I Increase My ACH Limits?
If you plan to have donors routinely give amounts higher than the initial limit, we recommend that you let us know as quickly as possible. Large limits require approval by our ACH provider and not under our direct control. It often takes several days, and up to a week to grant a request for an increase, so the sooner we know, the sooner we'll be able to submit the request.
Due to the risk in processing higher amounts, very large limits will be assessed a .25%–.5% fee per transaction that goes directly to our ACH provider.
To request an increase to your ACH transactions, you can contact us or start a chat with us using the icon in the bottom right of any page on our site!