SaaS Necessities: Understanding Recurring ACH API 

Integrating payment processing solutions allows SaaS platforms to provide users with a more valuable, long-lasting payments solution. A platform optimized to automatically collect revenue is a necessity for businesses that deal with recurring payments.

Advantages Over Card Payments

Recurring ACH API has two distinct advantages compared to using standard credit/debit card payments: 1) Fewer Declined Payments 2) Lower Processing Fees

Fewer Declined Payments

Approximately 15% of credit card transactions are declined (often due to card expiration, account changes, etc.) compared the <2% ACH API payments decline rate.

Lower Processing Fees

ACH payments can save your business up to 90% of the cost of traditional credit card processing.

What Does Your Business Need From Recurring ACH API

Make sure you understand what your exact needs are when integrating Recurring ACH API.

Common needs include: 1) Mitigating Risk 2) Protecting Data 3) Reporting, Communication, And Reconciliation

Mitigating Risk

Beyond utilizing ACH payments, Recurring ACH API offers risk reduction tools to validate bank account and transit routing numbers, and check databases for invalid accounts.

Protecting Data

Many ACH API providers support tokenization, which allows  SaaS applications to send bank data immediately through a secure gateway and accept a reference “token” in return. This eliminates the need to store sensitive customer data on an application, thus preventing any chance for data theft.

Reporting, Communication, And Reconciliation 

SaaS platforms that integrate Recurring ACH API can automatically reconcile data as soon as it’s received by the gateway from the Receiving Depository Financial Institution (RFDI). Notifications can be automatically sent to customers and/or employees regarding ACH transactions, and non-sufficient funds related  scenarios (e.g. automatically instigating NSF re-presentment attempts, new NSF fee debit card transactions, etc.).

Meeting Your Business’s ACH Needs

Recurring ACH API provides clear financial benefits, and a range of other positives for both the host application and subscribers, especially for SaaS applications utilizing subscription models.

For almost 20 years, Agile Payments have been offering premium ACH API integrations to businesses of any size. Contact Agile Payments for more information on