Initiating direct debit transfers
If initiating a wire transfer is as simple as showing the investor some static text, then a direct debit is the exact opposite. Full integration is beyond the scope of this book, but we can look at some of the core principles and a few snippets of code.
Compared to a wire transfer journey, the major difference with direct debit is that we can perform the entire process without ever leaving the Robo-advisor. This is because we can use APIs from providers such as Plaid and Stripe to initiate a direct debit transaction. In America, direct debit happens via the Automated Clearing House (ACH) network.
ACH is a payment network that was started by American banks in the early 70s (Nacha). Since 2016, ACH has supported same-day payments. The basic process for setting up an ACH payment involves a few steps and several providers, even before we get into the technology needed. Our Robo-advisor would be the so-called originator, while two banks send and receive...
