automatic payment systems
has anyone ever implemented a system where outgoing payments are made automatically? given an IBAN code, account name and so on, pay that a/c $x?
do most banks that do e-banking have this kind of function? I've not seen it mentioned at mine, but then I've not asked either ...
April 17th, 2007 4:25pm
ACH, the automated clearing house is controlled by the government.
To my knowledge there is no standard mechanism that allows for such payments without going through that or something similar.
April 17th, 2007 4:34pm
I've never implemented any such thing but several of my online banks have the option to pay someone on a schedule.
the great purple
April 17th, 2007 5:07pm
In the UK it goes under the name of a standing order.
April 17th, 2007 5:10pm
eh, yeah, but I mean to do it automatically from a program. Basically, have in your application an API that says "here are bank details ... validate them ... OK, pay €10".
April 17th, 2007 5:11pm
Ironically, I am doing the UI for the ACH (automated clearing as part of our application), but as far as I am concerned, I am only taking the routing number and account number and saving it. Something else does the real work of actually debiting the account.
I would assume it is not a complicated process. There ar I am sure some third-party will just take the account number through some api. there are probably federal guidelines though (for tax purposes).
April 17th, 2007 5:14pm
i am actually looking at doing it in the EU, so it is not ACH but (I think) PE-ACH.
There seem to be some 3rd parties like :
but god knows what it takes to get it all going. I'll have to dig deeper, I guess.
April 17th, 2007 5:20pm
There's schemes like ACH for each European country, so you could implement 20 different formats. There's also SWIFT which handles the same the internationally, but you'll need to be very low down in the chain to access that. Typically, you'd deal with a payment service provider that offers you a unnified interface for money transfers in exchange for ~5% of each transaction.