How to Accept ACH and Bank Transfer Donations

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If you've read my breakdown of payment processing fees, you know that credit card fees eat into every donation. The average nonprofit pays 2.2% plus a per-transaction fee on every card payment. On a $100 donation, that's roughly $2.50 gone before you can use it.

ACH (Automated Clearing House) bank transfers cut those fees dramatically. We're talking 0.8% or less in most cases, with many platforms capping the fee at $5 regardless of donation size. For larger gifts, the savings add up fast.

Why ACH matters for nonprofits

The math is simple. If your organization processes $50,000 in donations annually and you could shift even half of that to ACH, you'd save somewhere around $350-500 per year in processing fees alone. For organizations processing six figures or more, the savings become significant.

But fees aren't the only reason. ACH donations also have lower chargeback rates, and recurring ACH gifts have better retention than credit card recurring gifts. Bank accounts don't expire the way credit cards do, so you don't lose recurring donors every time a card gets reissued.

How each platform handles ACH

Donorbox

Donorbox supports ACH through Stripe. When you enable it, donors see a "Bank Transfer" option alongside credit card on your donation form. The ACH fee through Donorbox is typically 0.8%, capped at $5 per transaction.

Setup is straightforward. Connect your Stripe account, enable ACH in your campaign settings, and it shows up on your form automatically. Donors enter their bank routing and account numbers, or they can connect through Plaid for a faster experience.

One thing I like about Donorbox's implementation: it works with recurring donations too. A donor can set up monthly giving directly from their bank account, which means better retention and lower fees on every gift.

GiveButter

GiveButter also supports ACH payments. Since GiveButter doesn't charge a platform fee, your only cost is the payment processing itself. ACH transactions on GiveButter typically run about 0.8% of the transaction amount.

The donor experience is clean. They select "Bank Account" as their payment method and either connect through Plaid or enter their details manually. It works on both one-time and recurring donations.

Bloomerang

Bloomerang handles ACH through its built-in payment processing. The fees vary depending on your plan, but ACH is generally cheaper than card payments here too. Since Bloomerang is also a CRM, your ACH donor data flows directly into your donor management system without any extra integration work.

Getting donors to actually use ACH

Here's the challenge: most donors default to credit cards because it's what they know. You have to give them a reason to choose bank transfer instead.

Be transparent about the savings. I've seen nonprofits add a simple line near the payment method selector: "Bank transfer donations save us processing fees, so more of your gift goes to our mission." That small nudge works.

Target your major donors first. Donors giving $250 or more benefit the most from ACH, and they're often the most willing to make the switch. A personal email to your top 20 donors explaining the option can convert several of them.

Make it the default for recurring gifts. If your platform lets you customize the default payment method, consider defaulting to ACH for monthly giving forms. Donors who commit to recurring gifts are already engaged enough to enter bank details.

Don't hide the credit card option. This isn't about forcing anyone. Some donors genuinely prefer cards for the rewards points or purchase protection. Let them choose, but make sure ACH is visible and easy.

What to watch out for

ACH transactions take longer to process than credit cards. Expect 3-5 business days for funds to clear. This matters less for regular operations but can be a factor during time-sensitive campaigns like year-end giving pushes.

There's also a small risk of returned transactions if a donor's account has insufficient funds. Most platforms handle this automatically and will notify you, but it's worth knowing that ACH payments aren't instant the way card authorizations are.

Finally, some donors (especially younger ones) may not have their bank routing number handy. Plaid integration solves this by letting donors connect their bank through a login flow instead of typing numbers manually. Both Donorbox and GiveButter support Plaid.

Start saving on fees today

If you're not offering ACH as a payment option, you're leaving money on the table. The setup takes about 10 minutes on most platforms, and even a modest shift from cards to bank transfers will reduce your processing costs over time.

Try Donorbox with ACH support