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I haven't seen it first hand, but lots of our current customers ditched them (and others) after working with their APIs or lack thereof (#xml). In general, ACH
by jslampe 11y ago
I haven't seen it first hand, but lots of our current customers ditched them (and others) after working with their APIs or lack thereof (#xml).
In general, ACH just wasn't built to accommodate "platforms" as an entity in the transaction cycle. Banks, while although cheap, have a problem reconciling their infrastructure and processes with today's expectations. Not to mention their services don't package or include other compliance required to leverage ACH legally (KYC, OFAC, reporting, reject handling, etc.).
Bottom-line: ACH and traditional providers are not suitable options for today's platforms. Among others, banks are hemorrhaging ACH-related business to companies like Stripe and Dwolla.
- nemothekid 11y ago>Bottom-line: ACH and traditional providers are not suitable options for today's platforms. Among others, banks are hemorrhaging ACH-related business to companies like Stripe and Dwolla. AFAIK, to plug in to the ACH network, you have to work with a Bank that has access to FedACH/ Electronic Payments Network. I know Dwolla has its own Payments Network, FiSync, but the number of banks on this system is very small. So in many cases its not so much that banks are hemorrhaging business, but Stripe/Dwolla are selling KYC, OFAC, reporting, reject handling, etc related services.
- yalogin 11y agoCan you tell me where I can find information about the compliance requirements for ACH transactions?
- jslampe 11y agoHow much time do you have? The rule book is like 600-700 pages. The best route I recommend is to engage your bank or processor, like Dwolla or Stripe, with your use case. They should be able to quickly identify what the requirements are for your platform.