The main reason ACH transactions fail is that the numbers are not typed correctly or the name on the order is not changed to the name on the check. If the routing number is typed correctly, but the account number is typed incorrectly, the transaction will process, but come back as an ACH Return in 2-4 days. ALWAYS double-check the information you enter. 

What is ACH?

ACH stands for Automated Clearing House. It is a network for settling check debits and credits between banks. For our purposes, ACH payments are simply the way that we take a check, get the routing number (bank identification) and account number (customer identification) and the account name, and process a payment using your customer’s bank account. 

How to take an ACH payment in Shed Suite

When you select the ‘check’ payment method in Shed Suite, you are prompted to fill out 3 distinct fields. 

  1. The routing number. This is generally in the bottom left corner of the check. (see image below) It is ALWAYS 9 digits. The routing number identifies the bank where the customer’s account is located. 
  2. The account number. This number is usually the middle set of numbers. (see image below) The account number is anywhere from 8-16 digits. It is usually everything between the two colons (:).
  3. The name on the check or bank account. Shed Suite auto-populates this field so make sure the name on the payment method and the name in this field match.

Helpful tips:

  • Some companies choose to take a photo of the check and upload it as a file to the order. This way the admin processing the order can double-check the name, routing, and account numbers before submitting. 
  • The check number is usually the third set of numbers

Although you can process an ACH payment without a physical check by having the customer give you this information, it is our recommendation to get a physical check written out for the amount you are processing. You will then keep the physical check for 90 days. This gives you the option to physically deposit the check if there are problems with the transaction. Certain types of ACH returns can be made up to 60 days after the transaction is initiated. 

What types of checks work in Shed Suite?

Personal and business checks from banks and credit unions should process. Some credit unions have strange and confusing account number structures. If you are unsure if a check will process and you have a way to deposit physical checks, you can process these transactions in Shed Suite as cash and take the checks to the bank. If you don’t have the ability to deposit physical checks, try calling the credit union and asking about their account number structures. Generally, the account number is everything between the colons.

Cashiers checks and money orders will not work in Shed Suite as they do not use the standard ACH protocols. 

As long as the routing number that is being entered is registered with the Federal Reserve, the check should process. You can verify routing numbers here. https://www.frbservices.org/EPaymentsDirectory/search.html

Bounced checks and ACH returns

The primary reason for ACH returns is that either the routing number, account number, or name on the check is entered into Shed Suite incorrectly. If any of these is incorrect, it is possible that the transaction will initially process and then come back as an ACH return.

There are new rules around how many ACH returns merchants are allowed to have. The primary area we are concerned with here is ‘administrative returns’. 

See the attached file to learn more about minimizing ACH returns. 

This document is provided to assist in your point of sale training. If followed, it should help you minimize the number of ACH returns and administrative workload. 


Routing number verification