You Want to Process ACH Payments. Do you Build it or Buy it?

With ACH transactions growing the last few years at over 10% annually (according to NACHA – the regulators of the ACH system) many payment processors and resellers are looking to cash in on that growth and capture additional revenue.

Offering ACH processing in addition to your current payment products is a way to grow revenue and increase client retention. If you or your organization are considering it, your options to do so are likely to either build it yourself or get it through a partner.

To build ACH yourself might seem simple, easy and risk-free. How hard can it be to simply credit one bank account and fund another?

What to Consider Before you Decide to Build Your Own ACH Platform

You Need Three Components to be in the ACH Business

  1. A bank to serve as your ODFI to send your ACH files to the Fed.
  2. An ACH platform to gather the transactions from software, gateways, terminals or however your clients send them.
  3. A company to sell, install and support the merchants.

In addition to these three functional items, it’s important to consider the financial exposure and risk assumed as a third party ACH processor.

Read more from our partner VCI about how to mitigate risk while still processing high tickets.