The payments landscape changed in September of 2016 when Same Day ACH was enabled to send money directly to a bank account within the same business day. Since this release, Dwolla’s API has been helping marketplaces pay merchants faster by utilizing Same Day ACH. 

In this blog post we’ll explain the value of Same Day ACH for faster marketplace payouts, the logistics behind integrating an ACH API and how other marketplaces are offering faster payments to create additional value for their users.

Same Day ACH for Marketplaces

When Same Day ACH was rolled out, it was in three phases:

Same Day ACH Phase 1 provided the ability to receive and process same day credits to bank accounts by the end of the business day.  

Same Day ACH Phase 2 was completed in September of 2017 and enabled the ability to receive and process same day credits and debits. 

Same Day ACH Phase 3 was completed in March of 2018 and called banks to make eligible Same Day ACH funds sent before the cutoff window by the end of the day. 

Prior to the first phase of Same Day ACH, standard ACH transactions needed 2-4 business days to process due to processing hurdles and protocols that ensure funds are where they should be. 

Increased processing speeds are especially exciting to marketplaces that need to pay vendors, sellers or service providers faster. Recipients can now receive payments on the same business day they’re initiated.

In 2018, more than 170 million Same Day ACH transactions initiated, according to Nacha

Through the first three quarters of 2019, Nacha reported that more than 170 million Same Day ACH transactions had been initiated. 

Marketplaces Are Paying Merchants Faster Using Same Day ACH

In most business cases, faster is always better.

After launching same day ACH credits, we’ve seen a variety of marketplaces start paying merchants faster. 

Some businesses use Dwolla’s ACH API to initiate a transaction once someone has successfully sold an item within their marketplace. With e-commerce marketplace Tophatter, for example, merchants can sell multiple items and receive their payment by the end of business that day. 

Another marketplace example is Nomad Health, a staffing platform that connects doctors and nurses with medical facilities and their open positions. Nomad Health partnered with Dwolla to offer faster marketplace payments. Funds are made available to the doctors or nurses by the next business day, via an ACH transaction through Dwolla’s ACH API. 

The results? 

Nomad Health used one developer to integrate Same Day ACH payouts into its existing Dwolla integration and can now pay clinicians in as little as one business day.

Integrating Same Day ACH Payouts

A common misconception about integrating new technology or functionality is that it’s going to demand a lot of valuable developer time. At Dwolla, we offer resources to assist in before, during and after the integration process. 

Our developer documentation serves as a roadmap to navigate Dwolla’s ACH API and Dwolla’s sandbox environment allows for testing specific use cases and features. Create fake customers, initiate fake transactions and do it all from the same dashboard that you would see in production.   

Here are more details on how to programmatically send ACH payouts same day.

As new efficiencies in ACH enter the market, we will continue bringing added functionality to Dwolla. For more information about same day ACH and how to get started with an integration, contact us today.

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