Entrepreneurship & Small Business

Canadian Company looking to ACH US clients

  • Last Updated:
  • May 16th, 2017 4:54 pm
[OP]
Newbie
Jun 21, 2015
32 posts
Toronto, ON

Canadian Company looking to ACH US clients

Hi,

First off hope all is well, and want to thank anyone who has any suggestion or advice.

We are a Canadian company offering small business financing to merchant in mostly the US. When we close a deal and broker solutions for the clients, we also charge a fee.

We are looking to directly debit the fee from the clients account. Right now, we are asking clients to wire the money or send a chq but that cause a lot of delays and some clients don't even end up paying the fees once the service are rendered. We want to find a way to charge the merchant simultaneously as the deal closes. ACH is the only method I could think of however most ACH companies won't do Cross boarder processing. I spoke to a couple and they said i need a US corp and a US based account and even with that, I probably won't be able to get ACH processing from them since they can't do a background check on me without a social.

Long story short.

Anyone know any good ACH companies they are using to debit us merchant?
Any other method of payment where we can charge a fee ?

Any ideas are welcome. Again thanks.
10 replies
Deal Addict
Feb 29, 2012
2084 posts
1053 upvotes
Richmond
You can open a U.S. bank account as a Canadian company. You do not need a U.S. corporation or U.S. taxpayer ID. You'll need to provide a reference from a Canadian bank where you have an account, and a W-8BEN-E form to certify that you are a foreign entity for U.S. tax purposes. Try BMO Harris - that's where we have our U.S. account. Call them and they'll send you a sign-up package with instructions. You don't have to visit.

Once you have your U.S. bank account you can do ACH direct deposit to or from others in the U.S., probably for free if you maintain a minimum average account balance ($1500 for BMO Harris). BMO Harris even lets you do mobile cheque deposit from Canada using an app, which allows U.S. cheques to clear in a couple of days instead of a couple of weeks.

Are you trying to get set up as a U.S, merchant that appears as a bill-pay option with U.S. banks rather than a client-initiated ACH direct deposit? That might be harder.
[OP]
Newbie
Jun 21, 2015
32 posts
Toronto, ON
Faith24 wrote:
May 2nd, 2017 11:50 pm
You can open a U.S. bank account as a Canadian company. You do not need a U.S. corporation or U.S. taxpayer ID. You'll need to provide a reference from a Canadian bank where you have an account, and a W-8BEN-E form to certify that you are a foreign entity for U.S. tax purposes. Try BMO Harris - that's where we have our U.S. account. Call them and they'll send you a sign-up package with instructions. You don't have to visit.

Once you have your U.S. bank account you can do ACH direct deposit to or from others in the U.S., probably for free if you maintain a minimum average account balance ($1500 for BMO Harris). BMO Harris even lets you do mobile cheque deposit from Canada using an app, which allows U.S. cheques to clear in a couple of days instead of a couple of weeks.

Are you trying to get set up as a U.S, merchant that appears as a bill-pay option with U.S. banks rather than a client-initiated ACH direct deposit? That might be harder.
So all I would need is a US bank account and debit US merchants directly ach. All I do on my end is have the client fill out an ACH Debit authorization form. And i can process that on my own from my us account?
Deal Addict
Feb 29, 2012
2084 posts
1053 upvotes
Richmond
There is a debit authorization form available from most banks. The client has to approve it, obviously - you can't just initiate it without their knowledge. That would only be useful if you plan on doing repeat business with them. If it's a one-time thing, you would be better off to just give them your U.S. bank account number and bank transit number and have them do an ACH direct deposit from their end.
[OP]
Newbie
Jun 21, 2015
32 posts
Toronto, ON
It's a one time fee. And giving them my transit and account number would mean I am trusting them to initiate the transaction and send, when realistically they can take advantage of the service we broker and not necessarily send the money, and once services are rendered by the third party its not like we can cancel the transaction because the merchant didn't pay.
[OP]
Newbie
Jun 21, 2015
32 posts
Toronto, ON
Id like to be able to pull the service fee directly from there account with there authorization - of course.
[OP]
Newbie
Jun 21, 2015
32 posts
Toronto, ON
Faith24 wrote:
May 3rd, 2017 9:03 pm
There is a debit authorization form available from most banks. The client has to approve it, obviously - you can't just initiate it without their knowledge. That would only be useful if you plan on doing repeat business with them. If it's a one-time thing, you would be better off to just give them your U.S. bank account number and bank transit number and have them do an ACH direct deposit from their end.
Called BMO Harris this morning, and they said they could open the US account remotely thats no problem but they dont offer ACH pull services for non us residents. They have commercial banking that may be able to help but i don't fit into that criteria as I am my annual revenue doesnt meet there requirements. Any one know of any other ACH service or pull services that will allow me to charge the feeS?
[OP]
Newbie
Jun 21, 2015
32 posts
Toronto, ON
Offering small business financing to small businesses. When we close a deal and broker solutions for the clients, we also charge a fee.

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