Comparison
ACH vs. card processing for tax resolution and tax relief firms
ACH usually costs far less per payment and has lower dispute exposure, which suits large or recurring payments from tax resolution clients. Card processing is faster to collect and more convenient for clients but carries higher fees and chargeback risk. Many firms offer both: ACH for retainers and payment plans, and cards where convenience matters, using a processor that understands tax-relief underwriting.
By Truidian · Updated
ACH payments
ACH moves money directly between bank accounts. Fees are typically a small flat amount or a fraction of a percent, which matters on four- and five-figure engagement fees. Returns happen, often for insufficient funds, and consumers have return rights, but disputes are generally less frequent and cheaper to handle than card chargebacks.
Card payments
Cards are convenient and settle quickly, which clients appreciate when they are under pressure from the IRS. Processing fees are a percentage of every transaction, and chargebacks can be costly. Processors often review tax-relief businesses more closely because of the service model and dispute history across the industry.
What to ask a processor
Not every processor underwrites tax resolution firms, so ask directly.
- Do you underwrite tax resolution and tax relief businesses, and under what conditions?
- Is there a reserve or rolling hold, and for how long?
- What are the ACH and card pricing for recurring payment plans?
- How are chargebacks and ACH returns handled and what do they cost?
- Can clients pay installments on a schedule without re-entering details?
FAQ
Common questions.
Why do tax relief firms have a hard time getting a merchant account?
Processors often treat tax resolution as higher-risk because of the industry’s dispute history and the way fees are collected before results. A processor that works with tax relief firms and has clear terms can make approval and ongoing processing smoother.
Can clients pay a tax resolution firm in installments?
Yes. Recurring ACH or card payments let clients split fees over time, and some firms use customer financing so the firm is paid up front while the client repays a third-party provider.
Is ACH cheaper than cards for large payments?
Almost always. A percentage-based card fee grows with the payment amount, while ACH is typically flat or a very small percentage, so the savings on large engagement fees can be significant.
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Truidian is a business solutions company, not a lender, factoring company or payment processor. Services are offered by participating third-party providers and are subject to their approval and terms. Figures shown are general ranges, not offers or quotes. This content is general information, not legal, tax, accounting or financial advice.