Why MCA Funders Need ACH Processor Redundancy

At the heart of every merchant cash advance operation, there lies one fundamental truth: money can’t go anywhere without ACH processors.

Indeed, without processors, MCA funders can’t disburse financing or collect repayments at the scale that today’s market demands.

But while ACH processors are essential, they’re not infallible. Outages can and do happen—slowing down funding, stalling collections, and leaving your entire operation scrambling.

That’s why relying on a single processor is detrimental to MCA success. 

That’s why ACH processor redundancy is essential.

By connecting your MCA funding platform to multiple processors, you ensure continuous service behind the scenes—even when one processor fails.

In this article, we’ll explore why ACH redundancy is critical, the risks of single-processor setups, and how modern MCA platforms can keep your funding operation running without interruption.

ACH Integration in MCA Funding Platforms

ACH processors—service providers that handle ACH payment requests—serve as the essential link between MCA funding platforms and the overarching national ACH network. 

Thanks to companies like ACHWorks, Plaid, and Actum Processing, money can flow securely and at scale in both directions, enabling MCA funders to transfer advances to SME owners, as well as collect repayments.

But there is one final key to this entire process, embedded within the MCA platform, that makes it all happen: API integration. 

Put simply, APIs (application programming interfaces) enable two or more systems—in this case, a platform and an ACH processor—to securely interact with one another.

Instead of a person manually sending payment instructions, the API allows the platform’s software to send those instructions automatically and consistently. 

Let’s say you approve a merchant cash advance of $20,000 to an SME merchant. Here’s how the process would typically work:

1. The MCA funding platform sends a digital request to the ACH processor via its API. That request might say “transfer $20,000 to this merchant’s bank account.”
2. The ACH processor receives, formats, and submits the request to the ACH network, which handles the actual transfer of funds between bank accounts.
3. When it’s time to begin collecting repayments, the platform uses the same API integration to automatically initiate daily or weekly debits from the merchant’s account.
4. After each transaction, the ACH processor returns essential data back to the platform, including status updates, return codes, and confirmations. This helps MCA funders maintain accurate records, monitor risk, and stay fully informed at every step.

In other words, ACH processors move money, but the API integration makes the entire MCA operation reliable, trackable, and accountable. 

The Vulnerabilities of Single ACH Processor Reliance

We’ve established that ACH processors are absolutely critical to every single MCA funding operation. Without them, you can’t disburse advances or collect repayments at scale.

The challenge? While most ACH processing companies claim annual uptimes of 99.9%, that can still amount to about 8 hours of downtime per year. 

And the repercussions can be significant.

Just look at earlier this year, when Fiserv suffered a 12-hour outage that interrupted services for millions of users across banks and credit unions, not to mention more than 60 platforms.

Any MCA funding operation relying solely on Fiserv could have experienced any or all of the following impacts: 

• Financial fallouts: Delayed disbursements and collections can disrupt cash flow, slow down revenues, and prevent MCA funders from meeting their financial obligations, putting significant strain on profitability.
• Damaged merchant relationships: Failed or slow transactions frustrate merchants who rely on timely SME funding and repayment schedules. Such interruptions can dismantle trust, lead to disputes, and hurt the overall MCA funding customer experience, making retention much harder.
• Heightened operational and compliance risks: Outages can force operational headaches like manual reconciliations, which increase the chance of errors. Downtime can also expose funders to regulatory scrutiny if repayments aren’t processed correctly or on time.

So, what does this all mean for merchant cash advance funders? 

If you rely on a single ACH processor, you will likely experience downtime that—at least temporarily—brings your entire MCA funding operation to a halt.

Interestingly, most ACH processor outages aren’t even caused by security breaches but by technical glitches. The Fiserv outage, for example, resulted from a problem during a routine infrastructure update.

In other words, even without any malicious intent involved, small internal mistakes by ACH processors can cause enormous disruptions for anyone who depends on them.

Uninterrupted Operations With ACH Processor Redundancy

If there’s anything our many years as MCA funders and platform builders has taught us at Onyx IQ, it’s that relying on a single ACH processor is risky business.

Moreover, in an industry where timing and continuous service are everything, funders must proactively adopt systems and solutions that offer ACH processor redundancy. 

Put another way, redundancy is about ensuring your MCA funding platform is set up to connect with multiple ACH processors. 

Here are just some of the business-critical benefits that ACH redundancy provides:

• Cash flow continuity: If one processor fails, another will automatically and immediately take over, ensuring that daily debit and repayment processing go uninterrupted. This safeguards your working capital, keeps collections running smoothly, and prevents delays that could impact SMEs’ access to MCA funding.
• Multi-layered risk management: Each ACH processing company has its own security protocols, fraud detection systems, and transaction monitoring tools. Being able to access multiple processors adds extra layers of protection to your MCA funding operation. It also provides you options for routing sensitive transactions through more secure channels, if needed.
• Adaptability to market changes: When ACH processing companies alter their own terms, pause certain services, or tighten restrictions on MCA-related transactions, a redundant setup enables your funding business to pivot in an instant. This way, you’re never “locked” into a single provider’s limitations. 
• Future-proof scalability: Scaling your MCA funding business requires using infrastructure that grows along with you. ACH processor redundancy provides the flexibility to manage increasing transaction volumes, move into new markets, and support more SME funding merchants—all without worrying about the constraints or bottlenecks of a single processor.

By removing the risks of sole-processor dependency, redundancy ensures that your overall MCA funding operation remains agile, secure, and resilient, any time unexpected outages may occur.  

Dual ACH Integrations, One Platform: Why MCA Funders Choose Onyx IQ

In the competitive and fast-moving merchant cash advance funding industry, every delay comes at a cost. 

As such, investing in a platform that offers true ACH processor redundancy isn’t just a best practice, but a business imperative.

At Onyx IQ, we’ve designed our all-in-one MCA funding platform with built-in redundancy to protect every transaction, every time. 

But there’s more.

Thanks to seamless API connectivity, Onyx IQ also gives funders the flexibility to choose two ACH processor integrations from a list of five trusted partners. Every customer is set up with both integrations during implementation, ensuring built-in backup from the get-go.

Don’t wait for the next processor disruption to go looking for a solution.

Book your Onyx IQ demo today to learn how dual ACH integrations can maintain seamless MCA payment processing, even during outages.