ACH Payment Integration for SaaS platforms: How adding ACH payment processing can grow your revenues and client base.
Platforms that offer payment capabilities often go the route of adding credit card capabilities and stop there. If recurring payments are common this single payment option offers 2 challenges for the platform end-user.
1-Credit card decline rates can easily hit 10–15%. So the business is not collecting a significant portion of their revenue and now must try and get that money. In some cases the customer is lost due to non-billing. In the ACH world decline rates are often sub 2%. Think about how many times your credit card # changes versus how many times you change checking accounts and you see the primary reason for the discrepancy in decline rates
2-Credit cards will typically cost the end-user an average of 2.5–2.8% of the sale amount. An ACH transaction may cost 35 cents. The $ savings can become substantial
By leveraging an ACH Integration the platform offers their end-users time and money saving options. This results in a competitive advantage in the quest for new users.
The platform can also generate a new revenue stream. Typically the SaaS application has a “buy-rate” on ACH transactions. The SaaS user is charged the sell rate and the platform makes the difference. If your aggregate user base does 50,000 ACH transactions per month and you net 15 cents you have added $90,000 per year in recurring revenue.
ACH Payment Integration FAQ’s
- API availability: Does the partner offer RESTful, SOAP ACH transaction integration or both?
- What other payment utilities are available?
- If your market base includes Canada, does the partner provide a single API for both US ACH and Canadian EFT?
- Does the platform meet PCI Security standards even though NACHA does not require ACH transactions to be PCI compliant?
- Is sensitive ACH data tokenized and can a call be made to immediately tokenize the bank account data prior to an origination?
- Are there opportunities to leverage the ACH Processing Integration for your apps’s revenue stream?
- Are there ancillary utilities available from the ACH API to make calls for anti-fraud and risk mitigation?
- Does the partner provide assistance in ACH payments processing adoption for you and your user clients? Simply offering a payment method is not enough to get end user adoption.
- Are there risk acceptance models available that could lower processing costs?\
- Are there white label possibilities that might allow for a branded processing option, keeping the ACH processor behind the scene?
- Is there an API that would allow your customers to apply from your site or app?
- Will your potential partner take the time to understand your business requirements and provide options that custom fit the payments needs to your needs and your clients?
- How long has your potential integration partner been serving the needs of app providers and what is their track record?
- Are there ACH Payfac options available?
- Does your partner have an ACH bank account validation solution available for the 2021 NACHA requirement?
For more information visit AgilePayments.com