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Canadian EFT Processing allows businesses in Canada to debit checking accounts for one-time and/or recurring payments. Unlike with credit cards, cross border payments are unavailable. This means that funds are collected and settled in the same place. United States businesses looking to debit Canadian customers need a Canadian bank account to settle funds into.

ACH processing solution are common in the US. In Canada your options are much more limited because a small portion of banks control the payments ecosystem. Gaining access to the EFT processing capabilities can be difficult.

Utilizing Canadian EFT processing allows a business to use an easy to implement solution to debit or credit Canadian bank accounts electronically, vastly reducing time and money spent on payment collection.

Saas platforms can automate payment collection and reconciliation by integrating Canada EFT Processing or Canada ACH processing by itself, or in conjunction with US ACH processing. This system that includes both U.S. and Canadian e-check transactions and reporting data for reconciliation can be both a payment revenue generator and a powerful customer acquisition tool.

A business can make their end users business life more efficient and profitable by initiating recurring payments or one-time payments from your application.

Canadian EFT Processing allows your business or SaaS platform to:

  • Manage your cash flow more efficiently and improve cash forecasting. Knowing your business has reliable predictable cash flow makes planning much simpler and less stressful.
  • Preserve the autonomy of your business units while ensuring centralized concentration and control of funds. Automation and systems are the key to scalable growth. An automated Canadian EFT solution is a big step in business growth.
  • Accelerate your payables process and control the timing of credits/debits to your account. Again business planning becomes much simpler.
  • Mitigate the risks associated with cheque fraud and forgery. Again risk is reduced and mitigated with fewer paper cheques.
  • Reduce operating expenses associated with collecting/ writing cheques, manual processing, and time spent reconciling accounts. Ask someone working in the collections process how much fun it is to call people asking for payment.
  • Receive notification of rejected payments. Many times, and especially if working with a bank’s Canadian EFT tools, you are forced to manually deal with payment rejects. Often these can take a week or more to receive notification on.
  • Reduce employee and  bank service charges. Making bank trips and paying per check fees are both bottom line drags on your business. A Canada ACH solution automated these tedious manual involved tasks.
  • Reduce lost and stolen cheques. By moving money electronically you reduce risk of paper cheques being lost or stolen.

For SaaS platforms, Canadian ACH Integration offers a pathway to create a more useful and sticky end-user solution as well as generate new revenue streams.

Integration On-Boarding process

On-boarding process is an important process for any organization, with many organizations preferring the process to be a “white label” process. This means that the third party ACH processor stays in the background. The EFT integration allows the organization to pass the required merchant data to the ACH processor’s underwriting department – with everything in electronic format, including signatures.

The API must:

  • Provide the ability for the application and underwriting process to be presented on their website, as though the ACH payments solution is coming from them.
  • Pass the underwriting data to the processor.
  • Notify the parties involved where the application stands and pass API credentials to the applicant user once the merchant application has been approved and enrolled.

In certain cases the credentials are passed to the merchant themselves. SaaS applications require the merchant user to enter API credentials themselves, and in other cases the API credentials are passed to the SaaS organization for entry on the merchant’s behalf. It all depends on the Canadian EFT Processing path that the SaaS organization chose.

So what should you look for in an ACH Integration API?

  • ACH Integration–The Missing piece?
  • Does the platform meet PCI Security standards even though NACHA does not require ACH transactions to be PCI compliant?
  • API availability: Does the partner offer RESTful, SOAP  Canadian ACH transaction integration or both?
  • Does the partner provide assistance in ACH payments processing adoption for you and your user clients? Simply offering a payment method is not enough to get end user adoption.
  • How long has your potential integration partner been serving the needs of app providers and what is their track record?
  • Are there opportunities to leverage the Canadian EFT Processing Integration for your apps’s revenue stream?
  • Are there ancillary utilities available from the ACH API to make calls for anti-fraud and risk mitigation?
  • Will your potential partner take the time to understand your business requirements and provide options that custom fit the payments needs to your needs and your clients?
  • What other payment utilities are available?
  • Is sensitive data tokenized and can a call be made to immediately tokenize the bank account data prior to an origination?
  • Are there white label possibilities that might allow for a branded processing option, keeping the ACH processor behind the scene?
  • If your market base includes Canada, does the partner provide a single API for both US ACH and Canadian EFT?
  • Are there risk acceptance models available that could lower processing costs?
  • Is there an API that would allow your customers to apply from your site or app?

When easy onboarding is a priority, and the goal is to have clients enrolled and processing payments businesses should explore Canadian Payment Aggregation or Canadian Payment Facilitation [PayFac].

Pros to the Canadian Payment Facilitator model:

  • Flat fee structure: Easy to understand flat fees for your merchant customers. No needs to understand interchange tables.
  • Customers love that it is so easy to get the account going with no paperwork or documentation burdens. This dramatically improves the client boarding process.
  • Speed of boarding process: Being a Canadian Payment Facilitator allows you the ability to setup sub-merchants very quickly, removing a choke point to new client acquisition.
  • Earnings: Master merchants are able to earn money from network and transactional fees, and potentially float.
  • Payment aggregation as business model
  • Buy a Square reader at Walgreens, go online and create your account and within 30 minutes you can be swiping payments. That’s a very attractive acquisition tool.
  • Merchant Control: Sub-merchants are under contract with you, the Master Merchant.