ACH Direct Debit is a payment method that withdraws funds from a consumer's bank account through the US ACH network, whose rules are governed by Nacha. It excels at subscriptions and recurring billing, but it is a method whose design must account for consumers' dispute rights under Electronic Fund Transfer regulations (Reg E) and the risk of returned withdrawals.
The ACH network, the backbone of US bank account payments, processes more than 30 billion transfers a year and is the de facto standard for payroll, utility bills, insurance premiums, and subscription billing. Because its per-transaction cost is lower than cards and payments never break due to card expiry or reissuance, online merchants have increasingly adopted it as a way to offset the weaknesses of card payments in recurring billing models.
It delivers the greatest value for business models that bill the same amount repeatedly, such as monthly SaaS subscriptions, content memberships, or recurring deliveries. However, under Reg E, consumers can dispute unauthorized withdrawals within 60 days of the account statement, and failed withdrawals or returns are confirmed later than with cards, so you need to design a re-billing and service-suspension policy for when non-payment occurs.
When a consumer enters their routing and account number or completes an account verification process and authorizes the debit, the account is validated under Nacha's WEB debit rules and the withdrawal is initiated over the ACH network. Confirmation of the withdrawal typically takes 1-3 business days (a same-day processing option exists), and the transaction can be returned with a return code in cases of insufficient funds, an account error, or a consumer dispute. Hecto Financial collects the confirmed funds in USD, converts them, and pays them out in the contracted currency.
Adoption of US ACH debit payments can be reviewed through Hecto Financial on the basis of a Korean corporate entity. However, merchant obligations under Nacha rules — such as retaining authorization (mandate) records and managing return rates — are more specific than with cards, so requirements by industry and billing model should be reviewed with the sales team before signing a contract.
※ This section describes the general support process and does not guarantee that integration is available for any specific merchant. Please confirm the exact scope of support and fees through a consultation.
Confirm whether a contract is available for merchants registered in Korea
The integration method and priority vary depending on your online sales channel mix, such as your own store, open marketplaces, or mobile apps
Check in advance whether your products fall under categories restricted by ACH Direct Debit's merchant policy
Confirm compliance with US payment and foreign exchange rules, including federal and state consumer protection and card network rules (see official sources below)
The settlement structure assumes the withdrawal has been confirmed. Hecto Financial collects the confirmed ACH withdrawal funds in USD, converts them, and pays them out in whichever of USD, KRW, or JPY was chosen in the contract. Even after a withdrawal, funds can still be returned due to a consumer dispute within the Reg E dispute window (60 days), so beyond the settlement cycle itself, be sure to confirm how return deductions are handled in the contract terms.
The Hecto Financial team will work with you to review the right combination of payment methods for the US market.
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