Stripe ACH Rate Change
Populi recently participated in a beta version of Stripe.com’s ACH product which allows many of our colleges* to easily accept tuition payments and donations at a much lower rate (0.5% + 25¢) than credit cards (2.9% + 30¢).
Stripe recently brought their ACH features out of beta and published new pricing. So, as of August 1st, 2016, we’re pleased to announce a major rate decrease for larger transactions! The new rate is 0.8%, with a 25¢ minimum transaction fee and a $5 maximum transaction fee.
For small transactions this new rate may be slightly higher, but for larger transactions it’s a huge cost savings. For example, for a $5,000 tuition payment:
$5,000 * 0.5% + 25¢ = $25.25
$5,000 * 0.8%, with a 25¢ minimum and $5 maximum = $5
Either rate represents a substantial savings compared to credit cards (accepting a $5,000 credit card payment via Stripe would cost your school $145.25), but in this example your college would now pay one fifth of the old ACH rate!
We’re confident this price change will allow more of our clients to benefit from the convenience of accepting online payments and donations, without the substantial fees associated with credit card transactions.
*Because of regulations regarding the ACH network we’re not able to offer this service to all colleges; typically only to established, accredited colleges. Please contact support to see if your college qualifies.