Businesses are constantly looking for ways to improve processes to increase revenue or identify a technical solution to help user experience. Recognizing the areas of opportunity can seem like a simple task for some but identifying a viable solution for the entire organization can be more of a challenge. A commonly overlooked area across a company, typically due to lack of ownership, is payments including processes, tech, UX and more.
This is why Dwolla has broken down the benefits of integrating a reliable payment technology and how leveraging the ACH Network for payments can ultimately increase business profits. Businesses that would rather focus on growing at their core area of focus instead of building a payment solution from the ground up should consider the benefits of a payment integration.
In this blog post, we highlight key benefits of what a payment integration could provide your business:
- Cost savings
- Efficient processes
- Reliable and secure technology
Excluding cash transactions, ACH transactions have some of the lowest transaction fees.
In addition to the decrease in payment processing fees, businesses moving to electronic payments save, on average, around $7 per physically issued check. For an organization collecting/issuing thousands of checks a month, there is a tremendous cost savings to be recognized across teams.
A great example of this is a standard $500 transaction. Depending on the payment platform and the direction of the funds flow, average fee costs are as follows:
- ACH Transfer: ~$0.55
- Paper Check: ~$7.88
- Credit Card: ~$9.60 ($500 x 1.9% fee + $0.10 transaction fee)
- Wire transfer: ~$30
If you’re interested in finding out how much money your business could save with the ACH Network, use our payments cost calculator. This tool estimates your cost savings should your business use the ACH Network to power your payments.
Building a payments solution is similar to building a car, and the Dwolla Platform is a pre-built engine. If you were building a car, would you rather build an engine from the ground up, or install a pre-built engine?
Through a simple API integration with the Dwolla Platform, businesses can save time and money by streamlining existing payment processes with electronic payments through the ACH Network. Additionally, companies are able to implement a customizable ACH payment solution in as quickly as ten days.
For example, GOAT is an online marketplace for sneakers that incurred unsustainable costs and friction when trying to send payments to its sellers. The company needed an ACH payout solution that could be scalable and implemented quickly. Within ten days, GOAT integrated Dwolla’s API and maintained end-to-end branding all while mitigating direct and indirect costs.
Reliable and Secure Technology
Identifying a payment partner that will provide your business with a reliable and secure platform is key to maximizing all the benefits. There’s not much worse than having a team of folks integrate technology that is down more than it is working or has below average security standards.