What You Need To Know About High-Risk E-Checking Processing

by Confidential Banking #1 Merchant Processing Services

Electronic checks, more commonly known as e-checks, give businesses an alternative method to accept payments from buyers. They enable companies to get more sales from buyers who do not have or prefer not to use cards for making online purchases.

In addition, electronic funds transfer with e-checks is safe, reliable, and efficient. A single account lets companies accept payments online, by phone, fax, or mail.

How Does High-Risk E-check Processing Work?

E-checks automatically debit payments from a buyer's bank account and deposit the funds into the seller's account.

A high-risk merchant account with e-checks processing lets consumers purchase with funds from a checking or savings account rather than paying by card. At checkout, the buyer enters the routing and account number of the account instead of entering a card number. The funds are debited from the buyer's account and credited to the seller's account. The buyer receives an email receipt confirming the transaction is complete.

Companies often wonder if consumers will buy with e-checks. After all, cards are the most popular way of purchasing through an account site. Yet, businesses that implement a high-risk e-check processing solution are happily surprised to discover how much new business is obtained with the payment option.

E-Checks: Business Case

Developing a business case for adding e-checks to your payment options is simple. Consider these statistics:

●      In the US, 75% of all non-cash payments are paid by either paper checks or e-checks.

●      Over 70 million US adults do not have a credit card. Offering e-checks gives these buyers a way to pay for purchases.

●      23% of American households cannot qualify for a credit card. E-checks are a good alternative payment option.

●      Over 90% of US households have bank accounts and can make purchases with e-checks.

Electronic Checks and Consumers

There is a great degree of consumer acceptance of e-checks as a payment option. Americans are paying with e-checks more than ever before. Many consumers already pay utility and household bills online or through direct debit. Consumers have become habituated to e-checks as a payment option. Buyers now expect e-checks to be offered as a payment option at checkout.

Another factor in the soaring use of e-checks is the tightening of credit markets due to the recent economic downturn. Consumers have less credit available and are also looking to trim expenses. Paying with e-checks eliminates risk to credit ratings, avoids potential finance charges, and helps consumers maintain control over finances.

Advantages of E-Checks to Merchants

●      Expand sales channels. Accept e-checks online, by phone or mail.

●      Save money on processing. E-checks transaction fees are much lower than credit card payment processing.

●      Boost sales. Capture sales from consumers who do not have or prefer not to use cards.

●      Protect recurring billing income. It provides merchants an easy way to stabilize recurring billing cash flows.

●      Decrease collection times. Reduce account receivables payment times with no more excuses about the "the check is in the mail."

If you are not using e-check processing in 2020, you are losing sales. So, what are you waiting for? Get in touch with a reputable e-check processor today and create your ACH merchant account for processing e-checks!

 

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Created on Jun 3rd 2020 07:46. Viewed 198 times.

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