ACH Payment Integration | ACH API
An ACH Integration Guide - what to look for in 2020.
An ACH Payment Integration offer SaaS platforms and developers the ability to automate payment collection, disbursement and reconciliation using an ACH API [Application Programming Interface]. The ACH option allows debiting/crediting of checking and savings accounts via the ACH network.
Integrating an ACH Payment Processing solution offers your users payment options and benefits. If your product or SAAS offers any kind or recurring payment functionality then an ACH transaction integration needs to be part of your offering. Here is why:
- Credit card decline rates continue to rise. Average recurring credit card billing return rates are around 15%. ACH payment processing return rates are typically sub 2%. Think about 15% of your expected revenue NOT coming in. And you now have to contact those customers to update billing info.
- ACH Processing fees are typically 80-90% less expensive than credit card fees. For many businesses reducing margins by 2.5-3% is significant. Offering an ACH option can increase profit margins.
- Banking checking and savings accounts don’t have expiration dates and are not nearly as susceptible to being closed or re-generated due to data theft. This makes ACH integration of payments an ideal choice for any application or service that has a recurring payments component.
- ACH payments are widely accepted by both consumers and businesses for payment facilitation.