ACH Integration Providers allow for SaaS platforms and developers to automate payment collection, disbursement and reconciliation by providing ACH integration solutions. The ACH option allows for the debiting/crediting of checking/savings accounts via the ACH network, and the utilization of an ACH API [Application Programming Interface].
Paper checks are too burdensome and expensive to handle for organizations and/or applications looking to accept payments from bank accounts, and are much more susceptible to fraudulence. For applications providing payouts to businesses/affiliates, handling ACH credits via an ACH Integration Provider is a far more prudent option.
An ACH Integration Provider offers solutions that provide more feasible methods for streamlining cash flow. A reliable, affordable payment vehicle with API functionality adds value for your user base, and leads to more satisfied clients.
Credit card transactions can be disputed and charged-back for multiple reasons. In the ACH realm disputed transactions are far less likely. There are three main reasons that ACH transactions are disputed; the transaction was simply not authorized to be debited, the amount was incorrect, or the date that it was processed in incorrect. A formal affidavit must be completed at the bank where the ACH debit was drawn upon in each of these cases.
Applications with recurring payments requirements that utilize an ACH integration solution will quickly realize the benefit of setting up a user for ACH recurring payments without the concern of declines. Typically a return notification (usually a result of non-sufficient funds) will be only reason to interject into a user’s account. This is where a good ACH API is valuable.
Rejected ACH transactions have two re-presentment originations available to try to capture what was the NSF funds. Favorable re-presentments vary by business type, but the parameters available should be:
- Delayed by a specified number of days
- A logical date such as a pay date (e.g. the 1st or 15th of the month)
- A specific day of the week
By leveraging retry field parameters via the ACH integration API, the SaaS organization can programmatically manage any NSF returns. By the same token, if a SaaS organization wishes to assess and capture NSF returns, the origination of a separate NSF fee transaction can be automated.