What Is ACH vs. Split (MCA Remittance)?
ACH remittance withdraws a fixed dollar amount from the merchant's bank account on a set schedule, daily or weekly, while a split remittance instead withholds a percentage of the merchant's actual receipts, so the amount collected moves with sales instead of staying flat.
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ACH remittance withdraws a fixed dollar amount from the merchant's bank account on a set schedule, daily or weekly, while a split remittance instead withholds a percentage of the merchant's actual receipts, so the amount collected moves with sales instead of staying flat.
ACH vs. Split (MCA Remittance) explained
lendsaas's glossary defines ACH plainly: an automated network moving funds between bank accounts, and it adds a specific, important note: most MCA remittances collect via daily ACH debit. That means the funder pulls the same dollar amount from the merchant's account on the agreed schedule, whether that day's sales were strong or slow.
A split, or percentage-based, remittance works differently. It's tied directly to the holdback rate, defined in this glossary as the percentage of daily or weekly card or ACH receipts withheld to satisfy payback, and lendsaas and mcarocket both note holdback is used as a synonym for split or remit rate in the industry's own vocabulary. Under this structure, a 12% holdback pulls 12% of that day's qualifying receipts, not a set number.
The practical difference shows up on a slow week. A fixed ACH debit hits the merchant's account for the same amount regardless of sales, while a percentage-based split scales down automatically when receipts drop, which is exactly why some merchants push to negotiate a percentage structure over a flat daily debit. lendsaas's own framing makes clear the flat ACH debit is the more common structure in practice.
Why it matters when you're buying
When you're vetting a submission or explaining terms to a merchant, know which collection method the offer actually uses. A merchant with seasonal or unpredictable revenue feels very different cash-flow pressure under a flat daily ACH debit than under a percentage-based split, even at the exact same nominal cost.
Frequently Asked Questions
What's the difference between ACH and split remittance in an MCA deal?
Which remittance method is more common in MCA deals?
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