The ability to send money electronically allows for fast business transactions and positive customer relationships. Businesses and personal transactions can take place on a money transfer API, especially in the United States (U.S.), where sending money electronically is a hassle.
With a USA money transfer API, you can send money to someone who has the same API as you and also has a US bank account and/or address.
If you are looking to tap into the money transfer market, then as a business you should consider why an API like a US money transfer API is so profitable. See today how Sila payment gateway can propel your business forward.
How a Money Transfer API Can Help Your Business Grow in the US
If you operate within the United States, then you know how difficult it can be to send money or complete a financial transaction. Currently, in financial institutions in the U.S., money transfers are done through banking or financial institutions. If there is money being transferred outside of the brick-and-mortar financial institution, then the process must still be verified by an accredited bank and ACH (or Automated Clearing House) operator to approve the transfer.
If you’re looking to transfer within the USA, then you are also limited to a small number of financial institutions or banking services. By creating your own money transfer API, one that is integrative for a number of businesses and with a range of services, then you are opening up options for consumers and businesses alike.
Instead of being forced to depend on certain carriers in order to facilitate cross-border transactions, USA money transfer APIs can 1) provide more options for money transfer services and 2) open up U.S. borders for more flexible transactions.
Money transfer APIs can be integrated into a number of transaction systems, for example. As a business owner, an API can easily be integrated onto an eCommerce platform to allow for ACH transactions to take place. While easily integrative, these services are also supremely secure. APIs only communicate with secure and earmarked endpoints, making it more difficult for hackers to infiltrate the personal data that passes through an API.
International Currency Conversion and Transaction Fees for APIs
Getting money into the U.S. is also tricky. Very few financial institutions allow this simply because transferring internationally is so difficult. The other financial institution needs to be located within the U.S. Since this leaves options limited, then those who can facilitate an international money transfer can charge exorbitant fees. Wire transfers are a common way to facilitate money cross-border. Services like Paypal can also make this happen.
Unfortunately, wire transfers and money transfer services often charge large fees on top of the transaction fees and currency conversions. If not covered by your home financial institution, wire transfer fees can range from $15 to $45. This fee can be attributed to both incoming and outgoing transactions, so certain senders might be forced to pay more money on top of services or pay for the receiver to acquire that cash.
When sending money through APIs, fees and exchange rates differ. In general, APIs need to rely less on the banking standards of the U.S. market and can exchange currency based on a more malleable rate. They can also offer less cost for sending money, such as transaction fees, which makes the currency conversion less painful.
Security Measures in Place for Money Transfers Through an API to the US
Of course, when transferring money digitally, there are a number of security measures in place to ensure that the personal data is not compromised or the money is not stolen. Depending on the type of transaction, a money transfer might be protected by:
- API security built into the code
- Know Your Customer/Business (KYC/KYB) verification checks made before the transaction
- ACH transfer delays and verifications through the ACH Network
- Fraud checks through a credit card company/network
- Secure bank account linking
- Provide security through crypto transactions and digital currency transactions
- Protected PCI-SSD hardware and data storage
- Banking insurance
Depending on the banking API, all of these protective measures could be in place at any moment. For example, the Sila API comes with features like KYC/KYB verification, secure bank account linking through a verified and trusted third-party, FDIC-backed banking insurance, ACH verification, and the security of the API.
While this might sound like a lot of passing off to third-parties or other sources, this actually makes the transaction more secure. If bank account linking was not passed off to a third party, for example, then Sila and the business would be forced to verify that bank account linking could be provided and that the data needed to verify that the bank account was secure under PCI-SSD and NIST security settings.
Although seemingly ideal, this process can take years and thousands of dollars. By outsourcing it, the user and Sila are relying on a trusted party who only does secure bank account linking! That is their job and they are better equipped to do it right and to make that that the data is not compromised.
How to Choose the Right API to Transfer Money to the US Market
Choosing the right USA money transfer API can be difficult. After all, you want one who will help you get money into the US (or out of it) while remaining secure and not changing hefty fees.
For all of this, you should put your trust in Sila. Sila is a documentation and SDK package that allows API developers to create a secure API for banking transactions. It relies on third parties for secure bank account linking, for KYC/B verification, has an FDIC-issued bank account backed for $250,000, and facilitates cryptocurrency transfer.
Cryptocurrency transfer is a rather underrated way of transferring money internationally! In fact, with crypto transfers, you can almost completely bypass fees associated with international transfers and currency exchanges.
Sila can open up a world of financial opportunities. See today how Sila can transform the way you send money!
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Outsource your US Financial Compliance with Sila
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Sending ACH Payments with Sila
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U.S. Know Your Customer (KYC) Regulations and ACH Payments
If you operate as a financial institution or a third party payment processor (TPPP) and wish to send money through the U.S.’s Automated Clearing House (ACH), then you must follow the guidelines for knowing and verifying your customers. Older guidelines were centered around Customer Due Diligence (CDD), but more updated measures look to KYC, or the Know Your Customer rule.
How KYC and KYB Applies to Fintech Firms
Managing KYC and KYB can be tricky. Here’s a brief overview of what KYC and KYB means to fintech firms and how to prepare for it.