There are incredible cost savings associated with utilizing the ACH network for sending payment, however establishing yourself as an Originator isn’t always a bed of roses.
Any company can act as an Originator of electronic debits and credits while using a financial institution as the ODFI (Originating Depository Financial Institution). You’ll need to be able to create your own NACHA-formatted ACH file to submit to your ODFI to process payments—and if you’re unable of creating your own file through your accounting or billing software provider you will need to purchase software that allows you to create these files.
However, if you’ve been looking into this as an option to sending funds via the ACH network as part of your business, you’ll understand that you must do the diligent work of making sure you’re setting up everything in accordance with applicable compliance rules and procedures.
Instead of struggling to set up your own Origination program and losing months of valuable time reading up on the NACHA rule book, you could be looking into integrating with a proven payments API in the ACH space.
Dwolla provides an easy on-ramp to the ACH network, and at varying levels of customization. You shouldn’t have to become a payments expert to get your business off the ground, that’s what we’re here for. We offer a full stack ACH API that can be plugged easily into your existing platform or business to help you send, receive, or facilitate ACH transfer between your users.