API For Direct Deposit (ACH, EFT, Whatever)

Question

I'm looking for a way to automate a transfer from one bank account to another, without the end user having to login to something like paypal or amazon payments to complete the process (by transferring their on-line balance to their bank account). I've looked around online a bit, and found some vendors that seem to be able to do that, but API documentation doesn't make me feel sure about it.

Can anyone recommend a service they've used to do something like this? Obviously I'm looking for a web based API. The complete process is a middleman site that collects payments (that's the easy part), then disburses the payment (less a fee) to a bank account.

Amazon Payments would be great (allowing three-party/marketplace transactions); however, we're looking for something direct to the end users bank account.

(I know this isn't strictly about code, but I figured there might be someone out there who has done something similar.)

Solution 1

I definitely would advise against AllianceACH.com for the time being. They got sued by their bank and we lost a $5000 deposit because they don't have the money to refund it.

I'm pretty sure they are going out of business, although not positive. If they do end up getting their act together, and giving us back our deposit, I would definitely use them again. After they stopped providing ACH services, we switched to FirstAch.com.

FirstACH.com has what you need - however I have to warn you their interface (both API and GUI) are terrible and annoying. Their customers service is inept and they aren't flexible in working with you to provide solutions tailored to your individual needs. Unfortunately they are the best we have found.

We are currently looking into Wells Fargo business solutions as an alternative, however I suspect it won't be nearly as cheap.

Solution 2

The first place I would start is with your bank. Ask them what options they have for what you want to do. I am quickly finding that a good bank is willing to sit down with you and show you at least the options that they have and provide. They know the lingo of the business and can translate that for you. In our case, we can automate the ACH process by creating an ACH file daily and FTP that file to the bank.

Solution 3

Looks like Payflow ACH Payment is also out there, Payflow ACH API Link

Solution 4

I've seen people use Alliance before, and I know a few internal applications that use their ACH API, which handles all the check processing, direct deposits, and other transactions of that nature.

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Comments

[Loourr]

check out this new y combinator company for making ach transfers - balanced

[John Feminella]

Cool, thanks for following up. Good luck putting it together!

[Tim Lytle]

Turns out the project has been in the air since I asked the question, not even sure what payment gateway will be used (if it ever goes anywhere). Thanks for the advise.

[Ian Lotinsky]

In addition to ACH, there is traditional check-cutting. There are APIs out there where you can just give them a payee and address, they will print and mail the check for you. Where I work now, we use one to pay nonprofits called Network for Good. However, NFG will only send checks to nonprofits.

[evt]

Does Authorize.NET have the traditional check-cutting? If not, do you know what API does?

[Ian Lotinsky]

I don't think so. A quick Google search turned up: batchex.com and webmasterchecks.com (looks like the latter is having an SSL cert issue)

[ekkis]

they offer a COM interface but nothing for the .net crowd

[ekkis]

"Our Secure Web Pay" sounds like what I need but the link's broken. are these guys for real??

[Auston]

Alliance is down. FirstACH seems like a good fit, but $50 a month for API access is lame. I can't wait until Stripe integrates ACH.

[David]

eCheck.net looks like it would be used for receiving checks, though, not sending them.

[Mike Wills]

That and our old bank charged $0.10 per ACH transaction. This company is 3.5 times that.

[Ryan McGeary]

No joke. FirstACH's customer service is incredibly bad. This was my first experience with them: i.imgur.com/up4P8Bi.jpg

[Dominique]

@RyanMcGeary that's the most hilarious thing I've seen this week. Thanks for the laugh!

[socca1157]

What bank was this with?

[Adam Link]

It's very common for all banks to provide this functionality. It's done via a NACHA file and uploaded via SFTP to the bank. Airbnb did this for their first version of their site. However, note that you'll need to generate this file and handle errors in the returned file. That's a bear to do.

[jbll]

Here's a blogpost nerds.airbnb.com/do-it-yourself-ach-direct-deposit from 2011 about Airbnb doing this, for the curious