Dwolla, a banking system integration and transfers platform provider, has announced that Same Day ACH is now out of pilot and available to all approved Access API partners. On September 23, 2016, NACHA, The Electronic Payments Association that is the ACH Network Administrator, adopted a rule that enables same-day processing of any ACH payment. Before the rule was enacted, most ACH payments were completed on the next business day. Just in time for this new rule, Dwolla launched its Same Day ACH Pilot Program which offers members advanced access to Same Day ACH. Per the announcement blog post, the pilot program allows members to "initiate credit transfers via our White Label API and providing faster funds availability to their users. No plastic cards required."
Dwolla has added same-day ACH transfer capabilities to the Dwolla Access API. The Dwolla Access API allows developers to integrate the Dwolla banking transfers platform with Web and mobile applications. The Dwolla Access API is a Hypermedia API that tries to follow REST principles as closely as possible. One of the API’s attributes is HATEOAS which allows developers to build applications that interact with Dwolla resources without having to understand the underlying logic. Using the API, applications can credit or debit any U.S. bank account via ACH and can trigger, via Webhooks, near real-time notifications and account-related events. The API uses the HAL spec to represent resources and dynamically generate client-side forms.
"ACH is affordable, ubiquitous, and flexible, but the network and infrastructure required to access and support it has been prohibitively outmoded for some time," Jordan Lampe, director of communications and policy affairs, Dwolla, told ProgrammableWeb. "The Access API packages 540-pages of rules, years worth of banking relationships, and system controls into as little as four endpoints, making the banking infrastructure and ACH configurable and extensible. How platforms and applications innovate or differentiate on top of Dwolla is up to our partners."
At this time, ACH only allows credits to be same day. ACH debits will be allowed to be same day starting in September 2017. Same Day ACH is available to all approved Access API partners. Potential users of Same Day ACH must be an Access API partner in good standing, and undergo and be approved by Dwolla’s risk assessment team. Before NACHA enacted the same-day ACH rule in September 2016, most ACH transfers took up to four days to be completed.
The Dwolla announcement post lists three ways businesses can benefit from Same Day ACH; customers can receive funds faster improving customer experience, cash flow can be streamlined so that businesses don’t have to wait for funds to transit through the banking system, and platforms can be differentiated from others by offering expedited ACH payments to customers at a cost to the business that’s lower than credit cards. The availability of Same Day ACH at a significantly lower cost per transaction than that of credit cards could have an impact on the credit card industry and perhaps even on Bitcoin. Lampe explained:
"If you look globally at the other nation's with much faster payment systems than ours, you'll see the impact on previous card usage has been marginal—mostly because these new systems are cannibalizing the cash use. With that said, not all of these systems are as accessible and dynamic as ACH is becoming in the United States. This creates a new environment for today's digital platforms, most of which are competing for customers on two points: price and/or experience. Cards are increasingly being seen as rigid and expensive. ACH, and more specifically Same Day ACH offers a flexible platform with improved funds availability and at a much more reasonable price point. It's not perfect or for every use case, but providing bank transfers as an option is increasingly becoming more and more popular."
For more information about the Dwolla Access API and Same Day ACH, visit the Dwolla website.