Dwolla builds reliable ACH software that connects businesses and their applications to the ACH Network to enable payment functionality.

The ACH Network is an electronic system for moving money and is an incredibly reliable system that has formed the foundation of the United States payments industry since its establishment in 1972.

More than $51 trillion is moved along the ACH Network every year through 23 billion ACH transactions.

If your job pays you by direct deposit, if you pay a regular bill through a service connected to your bank account or if you’ve paid a friend through a mobile payment service, you’ve probably used the ACH Network.

Businesses that choose the reliability of ACH payments for their application must have a gateway to the ACH Network, by either building their own, integrating with a bank or integrating with a third-party payment provider.

That’s where Dwolla comes in, with reliable ACH software.

After integrating Dwolla’s ACH API, businesses are enabling their users to initiate reliable ACH payments through their platforms and applications, using the ACH Network.

Enabling reliable ACH processing for your business payments using reliable ACH software means spending less time worrying about payments and more time focusing on the business.

Businesses that enable ACH payments using Dwolla’s ACH API can access reliable ACH software.

The Dwolla Platform has a 99.9% uptime, meaning our ACH software is virtually always in operation, allowing your business to confidently initiate ACH transactions.

Enabling Reliable ACH Payments

Rally Rd. provides accredited and non-accredited investors opportunities to purchase shares in rare, collectable cars—such as a 1983 Ferrari 512 BBi or 1993 Jaguar XJ220. Shares typically sell between $10 and $200.

For its payment solution, Rally Rd. didn’t want to send their users to a third party but needed an integration that could reliably facilitate the movement of funds in and out of bank accounts, with low transaction fees.

“I think the ACH Network in general makes sense so investment returns aren’t impacted by high transaction fees,” says Rally Rd. CEO Chris Bruno. “And once you decide to go with ACH, Dwolla was really the only game in town.”

Rally Rd. needed something that provided reliable ACH processing while keeping their branding at the forefront.

“We didn’t want a solution where we are driving people to somebody else’s product,” Bruno says. “Having control of interactions ourselves and being able to integrate with a provider like Dwolla that lets us own that component of our business—but has seamless tech and transactions in the background—was a much better fit for us.”

Explaining the ACH Network

ACH transactions are reliable because rather than use a paper check to carry necessary—and private—transaction information, each transaction is transmitted electronically to allow for more reliable and predictable processing times. Businesses that enable reliable ACH payments can save money on transaction costs because of low transaction fees.

ACH transactions are governed by both Federal Reserve Bank regulation and rules established by NACHA: The Electronic Payments Association, the nonprofit association that oversees the network.

According to NACHA, the ACH Network processes two types of transactions:

  • Direct Deposits via ACH are the use of funds for payroll, employee expense reimbursement, government benefits or tax refunds
  • Direct Payments via ACH are the use of funds to make a payment

When making a reliable ACH payment, the payment can be either an ACH credit or ACH debit:

  • A direct payment processed as an ACH credit pushes funds into an account
  • A direct payment processed as an ACH debit pulls funds from an account

Both ACH debit and ACH credit transactions are typically settled in one or two business days.

ACH Returns

The ACH Network supports the ability to return entries for specific reasons—such as if the transaction was not properly authorized or has inaccurate information. These transactions are referred to as ACH returns.

Having a reliable ACH payment integration can help decrease the likelihood of your users or business receiving an ACH return code.

“Disputes” and “chargebacks” are terms heavily used in the credit card space and imply that there is a third-party arbiter looking at evidence from all parties to a transaction and determining a fair outcome.

An individual can also “dispute” certain ACH transactions, for example if they are unauthorized. The financial institution that originated the transaction is then responsible for providing the proof of authorization; if that can’t be provided, it ultimately ends up in an ACH return.

Businesses that integrate with Dwolla’s ACH API can take advantage of additional reliable integrations within the Dwolla Platform to help you decrease the chance of ACH return codes.

Plaid offers bank account verification and balance checks to help with the R01 return code to make sure there’s enough funding for a transaction.

Sift Science can tell you session data about the person interacting with your site as another layer of fraud protection.

With Dwolla, businesses can gain an onramp to reliable ACH payments. Integrate with Dwolla and connect to the U.S. banking system.

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