ACH Payment Integration | ACH API
An ACH Integration Guide – what to look for in 2024.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.
- 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.
ACH API FAQ’s
- How long should it take for an ACH API Integration? This depends on how “tight” the integration is. Some platforms choose to rely on your payments partners reporting tools that allow for “self-service”. Others choose a deeper integration that auto-reconciles payments. This is especially true of “management” SaaS platforms that provide accounting insight. Time frames can range from a couple of days to 1-2 weeks.
- Can a platform monetize its ACH API Integration? Yes and this is a compelling reason to offer ACH payment solutions. Typically the platform has a “buy-rate”. They would set the ACH pricing to their clients and make the delta
- Do ACH transactions operate like credit cards? No–the credit card rails offer a way to verify the funds on the payers card are available and can be secured. The ACH world operates in a batch environment and the banks involved have 3 days to sort out any potential issues, eg NSF