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If you’re new to the ACH Network, it might seem complicated or daunting to figure out how it all works. However, once you get to know its processes, it is actually quite simple to understand.
The biggest complaint that we hear here at Sila is the lack of functionality in the ACH Network. This means that more and more people feel restricted by what the ACH Network has to offer. As consumers within the U.S. financial system, we want to move money and we want to do with it a lot of flexibility and the ease that is available in the global financial system. However, and unfortunately, the ACH Network does not necessarily allow for that.
We decided to get creative when it comes to the ACH Network. After all, we are a part of the financial system here in the States and we want our money to go far. We’ve tested and implemented several technologies including an ACH API, authorization services, digital wallet services, and cryptocurrency (to names a few) in order to expand our U.S. customers’ capabilities.
If you’re not sure what this means, no sweat. We are here to help and to educate you on what your business can do, whether you are seeking to build B2B interactions as a fintech startup or you’re looking to make the next fintech breakthrough.
So what’s all the fuss about? ACH is a term that is thrown around in the fintech and banking industry. ACH simply stands for Automated Clearing House and it refers to an automated electronic payment processing system in the United States.
Most countries have a form of the ACH and often this money transfer system will be specific to the nation in which it works.
And the process for the ACH is straightforward:
When operating through the ACH Network, the National Automated Clearing House Network (NACHA) requires that each ACH operator is approved for ACH payment processing.
So while all of this is relatively straightforward, there are limitations around what can and cannot go through the ACH Network. For example, if you want to pay a bill through the network, the bill payment recipient has to be cleared through the bank, if you’re using a bank account.
This is one of the reasons why a TPPP, like a digital wallet or payment gateway, has high value, as these services improve the functionality that can exist in economic transfers and allow more people to pay bills seamlessly.
If you’d like to send an ACH transfer but are restricted through a typical bank or credit union, a transfer can be initiated through an ACH API or digital wallet. You can also create a digital wallet in order to set up your own system of financial transactions completely secure and completely verified.
Sila can help facilitate this. How?
Well, here at Sila we have collected some of the smartest engineers and developers to create a set of software development kits (SDKs) that allow other developers and companies to build their own payment platform.
Based on our system of services and with our SDKs, business owners and software teams can create a ready-to-go and fully compliance payment processor to securely send and facilitate an ACH transaction.
To do this, we use a powerful network of Software as a Service (SaaS) models so that authorization, authentication, bank account linking, and cryptocurrency is essentially outsourced, but can be easily integrated into the app that your company creates.
The Sila API is a ready-made SDK that provides clients with the ability to build a web, mobile, or desktop payment processor that is compliant, customizable, and white-labeled.
The API endpoints can also perform identity verification and bank account linking and in that way, allow clients access to traditional payment rails.
With the embedded financial services in Sila’s API, the following functions can be performed:
ACH payment processing is powered by Alloy’s identity verification and Plaid’s account verification and bank account linking. Through these two endpoints, Sila can provide fraud prevention and registration.
For ACH payment and processing, the API provides ACH debit to a digital wallet, ACH credit to bank account, bank account to bank account, and same-day ACH (coming soon).
Through two simple endpoints, Sila uses the power of Alloy’s identity verification with Plaid’s account identification and bank account linking to provide fraud reduction and new account conversion.
The API performs the following functions:
With Plaid Balance, Sila can verify balances in real-time and reduce non-sufficient funds (NSFs). The API verifies the bank account’s available balance and current balance.
Sila takes advantage of Plaid Auth to securely do the following:
Bank account name matching is available for both personal and business accounts for a faster and simpler user-friendly experience.
Sila also offers a digital wallet solution that enables end-users to fund a mobile wallet in seconds with decimal-point accuracy. While the API supports payments and transactions between bank accounts and digital wallets, it also offers a Cryptocurrency Wallet API that supports ERC-20 and Solidity smart contracts or the use of the secure Sila token.
Sila’s Digital Wallet API is an intuitive end-to-end solution that can support cryptocurrency exchange wallets, KYC and authorization on-ramps for businesses looking to leverage blockchain technology.
Sila uses Plaid Identity to verify and authenticate users’ identities, reducing fraud. User details such as the account holder’s first name, last name, physical mailing address, phone number and email address can all be verified through Plaid.
Alloy is integrated into the Sila API KYC identity verification and a proprietary scoring model. Sila + Alloy provides access to over 30 identity data providers and identifies:
Sila’s partner network provides access to additional features including:
With these high-powered fintech integrations to confirm things like identity verification and bank account linking, Sila’s API is allowing businesses and other B2B relationships to be more fluid in their interactions with financial innovation and the ACH Network.
This programmable API offers increased security and flexibility when it comes to sending programmable money. The API is secure under consumer data protection and there is no middleman who has to process the payment, ensuring that the transaction is 100% secure and encrypted.
By eliminating the middleman, Sila allows businesses to move away from costly wire transfers or credit card transaction fees and minimize the amount of fraud in financial networks.
With extremely fast services and intelligently linked partnerships, the Sila API provides support to the existing ACH network infrastructure and room to grow for new fintech innovation.