Organizations that serve a customer base of a recurring subscription nature will seek out anat one time or another. It is these types of applications that benefit greatly from ACH transactions.
Applications that serve either themselves or other organizations with customers of a recurring nature are subject to a different risk model related to ACH payments.
The customers have subscribed to an on-going service or product delivery, making the customers much more of a known commodity than if sales were of a one-off nature. In short, they know their customers pretty well.
When a SaaS application manages recurring transactions, the number of dollars spent on the processing of transactions must look at the health of the application and the businesses using it.
For applications serving multiple businesses, the payment vehicles offered to become an important issue. Applications not integrated into an API for ACH Payments become disadvantaged.
Depending on the average amounts of the recurring transactions processed from a given application, processing costs can be as great as 90% less for ACH transactions versus credit card transactions.
If monthly volumes are beyond a startup level, savings from ACH transactions can add a significant slice of revenue that could go toward the businesses using the SaaS.
An API for the ACH payments solution should be investigated carefully. Decisions made early on can have a lasting impact on the SaaS operation and the clients it serves.
Agile Payments has been meeting the needs of SaaS with their ACH integration needs for 19 years.