You could write code to initiate 1000 ACH debit payments at the 1st of every month with a given set of accounts. Each command corresponds to an API call which is a single instruction to write, read, modify or delete information from the system.Īn ACH API does exactly that but for payment use cases. So, you can essentially order a program to accomplish a certain task. Think of it as a menu - an API will have a list of commands you can execute with code. So, what exactly is an API and why are they so useful?ĪPIs, or application programming interfaces, are simply a way to make two separate software programs talk to each other. Many banks, financial institutions, payment processors and software companies are building ACH APIs to streamline high volume ACH payments. It's likely how you receive your paycheck, pay your electricity bill, or make an electronic money transfer to pay rent. You might recognize ACH once you know where to look. ![]() How do ACH APIs workĪCH moves more than $61 trillion annually and is one of the most common forms of payment today. ![]() Running all of this manually by clicking around in your bank portal is not feasible over the long term or at scale.īut, using ACH APIs to integrate payments capabilities into your property management software is a more feasible long-term solution. Also, each new payment flow you need to process, like refunding deposits for example, requires additional manual work. You would need to handle payment failures due to issues like incorrect account information and insufficient funds. Every month, you would need to log into your bank portal and initiate 1000 ACH debit payments to your tenant’s bank accounts. For example, let's say you manage 1000 residential properties in California and need to collect rent from tenants each month using ACH.
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