The ideal payment solution should help modernize a businesses and its mass payout processes.
Mass payouts refers to a business making a large number of payments to a number of partners, suppliers or merchants on a regular basis. Businesses that are still sending paper checks or experiencing a disjointed mass payouts process need to consider automating their payouts solution through the Automated Clearing House.
With Dwolla’s mass payment feature, a customer can send up to 5,000 payments with one API request. A key benefit is a bank-funded mass payout only incurs a single ACH debit from the bank account to fund the entire batch of payments. The payments are then processed asynchronously upon submission.
Manually cutting and distributing paper checks or building your own complicated interface is not the only way to do payroll or pay a bill.
This blog post will highlight the benefits of mass payouts for businesses and how utilizing the Automated Clearing House is the most cost effective solution for initiating a mass payout.
Affordable payout processing fees
Each mass payment will initially be pending and then processed through the Dwolla Platform. As the service processes your mass payout, each item is processed one after the other, at a rate between 0.5 and one second.
We expect a 1,000 item mass payout to be completed in roughly 15 minutes.
And rather than repeatedly calling the endpoint for each individual transaction, another significant advantage of automating mass payouts is the affordability and low processing fees.
A bank-funded mass payment only incurs a single ACH debit from the bank account to fund the entire batch of payments.
The alternative approach incurs an ACH debit from the funding source for each individual payment. Those who have used this approach have reported incurring fees from their financial institutions for excessive ACH transactions.
And excluding cash, transactions through the ACH network have some of the lowest transactions fees compared to wire transfers or credit cards. ACH processing fees are typically less than $1.
Mass payouts with through the API or dashboard
Already with a flexible and powerful solution for ACH marketplace payouts, Dwolla’s feature-rich API allows businesses to easily manage merchants or service providers.
With upgrades to Dwolla’s v2 API, applications can now receive webhooks to be notified of updates or events. Also, the ability to customize the fields for metadata makes it easier to reference different transactions. Customers also appreciate the branded user interface, allowing them to maintain their own branding within the solution.
Recognizing a robust ACH API, it’s easy for Dwolla to remain behind the scenes for a better customer experience. Dwolla does a good job of being neither seen nor heard. If a customer is running into trouble because of the Dwolla Platform, they will look elsewhere for a solution. But when a customer can’t tell they are using Dwolla, we are doing our job well.
Payouts through Dwolla’s API allows customers to connect their software to banking infrastructure to move money, store funds, validate customers and verify bank accounts. By using Dwolla’s API for mass payouts, businesses are able to cut costs and update an outdated payout process.
For businesses starting with Dwolla’s API and looking to send a mass payment, there’s no code required. By uploading a CSV file with email addresses and payment amounts, it is possible to send a mass payout in a few clicks, with no technical support required.
And after initiating a mass payout, Dwolla’s customers appreciate access to an intuitive dashboard with an interface for administrators to:
- Monitor transactions
- View business trends and performance metrics
- Manage customers
With Dwolla’s straightforward guides and endpoints, we’ve provided powerful payment rails to simplify and connect with the complex ACH network.