Many businesses rely on vendors for essential services or products but paying these vendors can be costly and inefficient.
Marketplaces that sell material made by vendors undercut their profits by using credit cards and their fees. Contractors waste time and money writing inefficient paper checks for their roster of vendors. As vendors are typically regular contributors, there has to be an automated, efficient payment process, right?
Businesses can stop spending painful hours trying to fix a manual, disjointed payouts process and instead pay vendors via the ACH Network.
There are plenty of benefits to paying vendors using the ACH Network, such as low per-transaction fees and incredibly reliable processing times. Dwolla’s ACH payment API is an on-ramp for businesses to access the ACH Network and have a truly customized payout experience. The Dwolla ACH API is considered “white label,” meaning businesses can pay vendors via ACH while maintaining their company branding.
Innovative companies can please their customers with timely payments while simultaneously reducing the costs associated with managing multiple payout solutions after integrating Dwolla’s ACH API.
Integrate mass payment functionality directly in your existing system and gain time back to focus on building your business.
ACH API Benefits For Vendor Payments Include:
- Customized experience with Dwolla’s ACH payment API
- Use transaction status webhooks – get updates sent to your application
- Add custom fields to your transactions
- Use metadata to add up to 10 fields
- Reference and reconcile with items such as invoice numbers
- Add metadata to your job (as a whole)
- Easily group transactions for future reference
Start building your mass payment solution and test it in our free testing environment.
Simplify vendor payouts with a Dwolla White-Label integration.
Paying a vendor via ACH through Dwolla means simply creating the vendor as a “receive-only” user. This type of user is only eligible to receive transfers to an attached bank account from the Dwolla account that created it—perfect for paying vendors via ACH.
We keep your businesses branding in the spotlight—meaning your users experience your branding and view your business name next to transfers received on their bank statement.
For example, GOAT is an online shoe marketplace that is able to pay its sellers via the ACH Network, through an integration with Dwolla’s ACH payment API.
Before Dwolla, GOAT was using a suite of payment services to collect mobile payments, hold funds and distribute money to sellers. In ten days, GOAT integrated the Dwolla API for payouts and transitioned to paying shoe sellers via the ACH Network—controlling the entire user experience.
This reduced sellers’ time to liquidity from up to seven days to an average of two and increased bank transfer payouts by 50%.
“When you’re a marketplace, sacrificing two to three percent of your profit margin to maintain a user experience that you don’t even control is bad business,” says GOAT Co-Founder Eddy Lu.
Choose Reliable ACH Software
Reliability is everything in payments. Dwolla’s reliable ACH software connects businesses and their applications to the ACH Network with a 99.9% uptime—meaning our software is virtually always in operation.
More than $51 trillion moves along the ACH Network each year through 23 billion transactions. Businesses that choose the reliability of ACH payments for their application means they spend less time worrying about payments and more time focusing on their product.
ACH transactions are reliable because rather than use a paper check to carry necessary transaction information, each transaction is transmitted electronically. This allows for a more reliable and predictable processing time, saving on transaction costs because of low transaction fees.