ACH API Integration and Recurring Payments
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While not mandatory, integrating an ACH API is advantageous for applications with recurring payments. Credit card decline rates for recurring payments are typically 15-20%, while ACH declines are much lower. Accepting ACH payments can significantly reduce customer service hours spent collecting new payment details and lower processing costs by thousands of dollars annually for applications with over 1,000 subscribers and a $75 monthly subscription price due to fewer payment declines compared to credit cards.
ACH API Integration and Recurring Payments
- 2. While an ACH API integration may not be a mandatory requirement for applications with recurring payments, there are few who would not find integrating to one advantageous.
- 3. Applications with a recurring payments component commonly have credit card decline rates of 15%, with some as high as 20%. ACH declines are a fraction of card decline rates. Credit card decline rates of 15%-20% on recurring payments
- 4. Credit cards expire, are lost, comprised and are reissued. Bank accounts are far less suspect to being compromised and they never expire.
- 5. Few payments being declined means much less customer service hours chasing down new card data.
- 6. One of the biggest benefits of ACH acceptance is the reduction of processing costs. An application with an average of a $75 monthly subscription price with 1,000 subscribers can amount to as much as a $15,000 reduction in payment processing costs annually. 1,000 subscribers $75 Monthly subscription $15,000 annual cost reduction