Using ACH APIs for Efficient Automated Payments

Leveraging an ACH API for Seamless Payment Integration

2021 ACH Transaction Volume

As of June 30, 2021, a new rule on supplementing data security requirements goes into effect for ACH originators that have an annual volume of 6 million transactions or greater. The rule requires the originators (and third party service providers) to protect bank account information unreadable when it's stored electronically. Basically, the sensitive bank account data needs to be tokenized. 

Disrupting the ACH and Credit Card settlement and funding process via a Funding Report

An ACH API integration enables a business or SaaS platform to automate ACH
payment processing and reconciliation. Any business that accepts recurring payments should leverage the ACH network for 2 compelling reasons:

ACH API Case Study:

Call center payment processing varies from organization to organization in terms of how it is managed, but the most used methods are from one of the following methods:

Software applications that require payments functionality often can benefit from adding the ACH payment rail. That's especially true for applications that have a subscription or recurring payments component. Thus the application's management or stakeholders will look to various ACH Providers for discussing requirements and finding a solution that meets their needs.

What is an ACH Transfer API, anyway? Quite simply, it's an API that provides the ability for a software application to integrate ACH processing capabilities for the purpose of providing the application to originate, manage and report on the transfer of funds between bank accounts.

If you're part of a SaaS dev team or a stakeholder and have determined that your application has a need for an eCheck API, have you defined your requirements?

ACH API Providers are organizations that provide an API for the purpose of integrating a software application to originate and manage ACH transactions. 

Many software applications have a need to accept payments, and many require the need to integrate payments functionality via an API. For some of these application organizations, integrating to a credit card API isn't enough and have a need to integrate to an ACH Payment API.

Software organizations that serve a customer base having recurring payments can better position themselves by integrating to an ACH Payments API. There are many reasons this is true, but the underlying fact that allows this is that these type organizations have a customer base of a subscription nature and who know their customers well.

If your organization is looking to integrate ACH payment processing, you likely have compiled a list of what your requirements are that are needed from the ACH API Provider. Integrating organizations can differ greatly in their needs, so be sure to have your transaction flows documented.

Many organizations are stuck in the world of managing their Canada EFT transactions by way of file submission. In some cases using antiquated windows software that is limited at best in ongoing maintenance. Fortunately there are Canadian EFT API integrations available.

While the ACH network is still a batch network, utilizing an ACH Payment Gateway API can do wonders for software applications in enhancing their capabilities by communicating with a real-time communication integration. Let's examine some of the modern communication tools available from these ACH gateways.

Recent news has once again exposed the reality that there are inherent risks for a third party ACH processor in handling and processing payroll transactions for a company who handles payroll for multiple companies or even a single company's needs. 

Property management applications are extremely popular today. There is rarely a week that goes by where we are not contacted by a software application that serves property management in some way or another. Often, we are discussing payments solutions with many at one time.

Applications that have a subscription component can differ in many ways, but almost universally there is an advantage for the application to integrate to an ACH API for origination and management of recurring payments. requirement, maybe not. Advantage to integrate and offer, most certainly.

One of the common problems that subscription based applications

Canada Electronic Funds Transfer processing options are scarce compared to the ACH processing providers available in the United States. Options are limited because of the small number of banks that run the payments sphere. This makes it difficult to gain access to Canada EFT processing.Utilizing a canada electronic funds transfer allows Canadian businesses to debit checking accounts for one-time or recurring payments.

For software applications that have an end-user base in a subscription model or include recurring transactions, an ACH Processing API is a must. Sure, few of these SaaS applications would want to discount the use of credit card processing because it's a commonly used payment modal, but being subscription based sets the application into an area of knowing their customer base much differently than some business that sells widgets on a one-time basis to consumers that might never revisit or occasionally purchase goods or services. Moreover, customers of these subscription based businesses more than likely rely on receiving their goods or services that the organization and SaaS provides.

Recurring ACH API For SAAS Platforms

How can an ACH Transfer API help your business or SaaS?

An ACH Transfer API provides an additional payment option: Using the ACH network allows a business to debit or credit checking and savings accounts.

Some applications are more favorably aligned with acceptance of eCheck (ACH) transactions than others. Applications that are proprietary and align themselves well with eCheck acceptance and only support their business can often start out with using an external transaction management tool for payment origination and management. On the other hand, applications that are used my multiple organizations or businesses are far less likely in being able to get by with utilizing an external payment management tool. Let's examine some key areas that factor in to whether and when an ACH Integration might make sense.