eCheck Processing - What Is It & Why Should You Use It?

by Confidential Banking #1 Merchant Processing Services

The check processing industry has grown exponentially over the last couple of years. This growth seems to have been primarily attributed to the tightening of many high risk businesses by financial institutions that have made it extremely difficult for businesses operating in an industry considered “high risk” to get a viable solution to process card payments. Today, many of these businesses use eCheck processing to accept customers’ payments instantly and securely.

Let’s take a look at what high risk eCheck processing means and why you should use it for your payment processing needs.

What is an eCheck?

An electronic check (also known as an eCheck) is a digital alternative to traditional paper checks. eChecks are often used for online transactions; merchants can collect the customers’ information on a conventional paper check and electronically collect money from the customers’ bank account through ACH. ACH (shortened from Automated Clearing House) is a batch network system that facilitates the transfer of direct payments from customers’ bank accounts to the merchant’s account.

What are the benefits of eCheck processing?

● One of the main benefits of eCheck processing is that, unlike a credit card, customers trying to dispute an eCheck transaction are required to provide more information to file a chargeback claim. This, of course, results in fewer chargebacks and lower overall operational costs for merchants.

● eChecks allow customers the convenience to pay via a wide range of payment options. Customers can make payments with funds from a checking or savings account rather than paying by card. They can take the routing and account number printed on the bottom of their checks and make payments over the phone, online, or on an automatic schedule. This way, their payments can be debited from their checking account, without adding to the balance on their credit cards.

● eCheck processing is also extremely secure. An eCheck transaction passes through far fewer human hands than a paper check — making a customer less vulnerable to identity theft or fraud. Because payments with eChecks pose fewer risks and come with less potential for fraud, customers view eChecks as a trustworthy mode of payment. This ultimately results in increased sales for the merchant who has implemented an eCheck processing solution.

● eChecks can also help improve cash flow and on-time payments. No longer does a merchant have to wait for the check to arrive in the mail as eChecks can be accepted over the phone or through electronic invoicing.

● Not only is it less expensive and less fraught with risks than card payments, the approval and setup of an eCheck processing account are also a lot faster. Nearly every legal business is accepted, and merchants can begin processing payments in less than five days.

Start accepting eCheck payments today!

The search for a secure and reliable high risk merchant account can be tedious, to say the least. Well, not anymore! If your high risk business is looking for a faster, inexpensive way to collect payments that also offer customers more convenience, eCheck payment processing is a simple, secure solution.