Agile Payments Announces Streamlined onboarding for SVB fintechs with ACH needs
Agile Payments Announces Streamlined onboarding for SVB fintech platforms with ACH needs
With the collapse of Silicon Valley Bank, many of their Fintech clients have been left in a precarious position. Losing an ACH ODFI especially for an integrated platform offering ACH payment processing to its client base, potentially puts the platform in danger. SaaS payment-related businesses can and have gone under in similar situations.
Many platforms and even 3rd party payment processors have received the dreaded Monday Morning Memo telling them their ACH pipeline was being cut off with zero warning. If there was no backup ACH processing in place this led to a frantic search for a new ACH partner.
In response to the SVB new Agile Payments is offering near-instant onboarding technology to affected SVB clients. The significantly improved application process collects relevant end-customer data and using an ACH onboarding API data is sent for approval. Assuming no missing or indistinct data points, processing credentials can be generated, and the end customer can begin processing payments very quickly.
In certain cases the platform may wish to become an ACH Payment Facilitator meaning they control the approval and onboarding themselves. This is also possible though there would be vetting of the platform to ensure compliance and risk mitigation measures are in place.
It is even possible to connect payment API’s to the platform’s preferred bank or ODFI. In this instance the time to market is largely a function of the partner bank ODFI and its technical capabilities. The benefits are complete control of the onboarding process as well as preferential transaction costs.
The risks associated with this pathway are primarily risk related. Any/all financial loss is the responsibility of the platform. The ODFI is also almost certain to ask for a substantial dollar reserve to offset their risk (as banks are wont to do).
For more information visit https://www.AgilePayments.com
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