Ignition may charge an additional fee on large bank account payments due to risk.
An extra fee of 0.3% will be added only on any amount above $3,000 (or £2,000 for UK Direct Debit payments). This fee only applies to bank account payments; it does not apply to card payments.
Over 95% of bank account payments made through Ignition are below this amount and therefore don’t have this fee.
As an example of how this works, let’s use an ACH bank account payment of $10,000 USD.
The base fee is $5 which covers the first $3,000
There’s $7,000 additional where the 0.3% fee applies. This comes to $21.
The total fee will be $26
For customers in the US, Canada, Australia or New Zealand, the high-value fee is charged on amounts over $3,000 (USD, CAD or AUD).
For customers in the UK, the high-value fee is charged on amounts over £2,000.
What’s the reason for this fee?
Like any payment processor, Ignition takes on some risk proportional to the size of the payment. If a client disputes a bank account payment, we have to return the money to the client immediately and trust that we can claim those funds back from our customer. If that’s not possible, for example, due to a business being dissolved or fraudulent activity, then Ignition becomes liable for honouring the client dispute.
This fee only affects a small percentage of payments and crucially helps us continue to offer competitive rates on typical payment sizes.
What if I regularly need to collect very large bank account payments?
Ignition can be used as a solution for collecting large amounts via bank account debit. However, if you regularly collect amounts in the tens of thousands or above, you may want to consider asking clients to pay those large invoices by bank transfer directly to your account instead.