We describe an ATM system architecture for satellite communications. The proposed architecture includes on-board switching, and supports the ATM traffic categories defined in previous specifications. In this framework, a critical issue is the control of congestion phenomena. In particular, the application of feedback-based control strategies to a satellite network is critical due to the peculiarities of such an environment: very large propagation delay, expensive transfer capacity, and limited on-board processing capability. The available bit rate (ABR) is the ATM service category handled according to a reactive congestion control (RCC). The focus of this paper is the definition of an RCC that is fully compatible with the standard ABR protocols, and that takes into account the constraints of the satellite environment. We also derive an analytical model that allows us to evaluate the performance of the proposed scheme and to dimension the system. The analytical model is validated with simulations.