Picked instant transfers over ACH for payroll, now I'm eating the fees

Small business owner here, 14 employees. Last month my bank offered same-day instant transfers for payroll at 1.75% per transaction. ACH was free but took 2 days. I chose instant because two staffers complained about late rent payments. Now I'm out roughly $180 a month and one employee still says the money hit at 5pm, so her bank held it until morning anyway. Has anyone else switched back to ACH after trying the fast option?

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1 Comment

piper_thompson319d ago

Whoa, 1.75% per transaction sounds brutal, that's way higher than I would have guessed for payroll. I get the whole late rent thing, but paying almost two hundred bucks a month for a few hours of speed seems like a lot to swallow. Honestly, if the bank is still holding the deposit overnight anyway, you might as well go back to ACH and save the money.