Merchant Services for high-risk eCheck processing allows for a greater number of chargebacks and returns than any other payment method. All industries with a high-risk profile can apply for a high-risk eCheck merchant account and receive the following benefits as an alternative to their high-risk credit card processing and payment acceptance needs:
- Accept eChecks over the phone and via email. There are no limits to the number of virtual terminals available for the secure processing of eCheck and ACH payments.
- Online check acceptance is also available. Observe how your sales increase.
- Processing in bulk. Upload e-check files to expedite the processing of multiple transactions at once.
- Billing on a recurring basis. Recurring payments are a standard feature on accounts that process high-risk eChecks. This is ideal for memberships, subscriptions, or products that are delivered on a regular basis.
- Reporting via the cloud. All electronic check payments are tracked in real-time. Robust reporting simplifies management.
- Rapid approval. Accelerate time to market. increase sales conversions more quickly.
- Accounts for high-risk electronic check processing do not have volume restrictions. You may process as much as you wish.
- Bank Network on a Large Scale. The platform for processing high-risk e-checks is integrated with multiple banks. Reduce processing risk by reducing reliance on a single bank.
- Increase your sales. Offering e-checks and ACH processing in addition to card payments is the simplest and quickest way to increase sales.
- Verification of Electronic Checks. It prevents fraud, minimizes returns, and reduces processing costs.
Various Payment Methods
Echecks, or electronic checks, are generic terms that refer to a payment that is debited from a bank account automatically. At checkout, the buyer selects electronic check payment and provides bank routing and account numbers rather than credit card information.
Echecks are one of the most frequently used alternative high-risk eCheck merchant account payment methods. Millions of shoppers use electronic checks to pay for goods and services on a regular basis. While the term “checks” is broad in scope, not all electronic check transactions are processed in the same manner. Simply because a business advertises that it processes electronic checks does not mean that the service is suitable for high-risk eCheck merchant services.
High-Risk Merchant Account
High-risk merchant accounts have unique requirements compared to low-risk merchants. Numerous high-risk businesses are occasionally unable to qualify for ACH accounts due to their inability to maintain the low chargeback and return ratios required by the ACH network. Additionally, ACH processors do not accept certain high-risk industries. High-risk electronic check processing accounts help protect your business, safeguard your operating account, and provide you with significant flexibility regarding returns and chargebacks.
This strategy is often effective for high-risk merchants. Numerous financial institutions do not accept substitute checks. The items are marked “Return to Manufacturer,” which increases your return ratio.
Banks flag chargebacks and returns on business accounts. According to high-risk merchants, when a business bank detects chargebacks and returns flowing through an account, the account is closed.
Processing Echecks for High-Risk Merchants
High-risk eChecks are processed via high-risk eCheck payment gateway and merchant service providers using bank-to-bank image transfer technology. Electronic check processing that is fully automated streamlines business operations. It also provides you with greater chargeback and refund flexibility than any other payment method.
All high-risk eCheck payments occur via the electronic check gateway. Chargebacks and returns are the processor’s responsibility. The eCheck payment processor settles cleared funds to your business bank account via an ACH credit, similar to how card processing funds are settled.
High-risk merchants who experience a high volume of chargebacks and returns appreciate this method of processing electronic checks because it alleviates much of the concern associated with chargebacks and returns.
What Are the Advantages of ACH Echecks for High-Risk Merchants?
To keep an ACH eCheck merchant accounts as an alternate payment option, chargebacks must be kept below 0.5 percent. Depending on the product sold, it can be difficult for the majority of high-risk merchants to comply with this requirement. Returns cannot exceed 15%, which can be challenging for some high-risk merchants.
Even merchants accepting standard risk in eCommerce and MOTO report that ACH eChecks are too restrictive due to the extremely low chargeback threshold. By comparison, card brands allow twice the number of chargebacks as the ACH network allows. Additionally, depending on the industry, certain high-risk merchants may be unable to obtain ACH eCheck merchant accounts. Adult merchants, cryptocurrency, precious metals, travel, multi-level marketing, and computer services are just a few examples.
Application for a High-Risk Electronic Check Processing Account
Applying for a high-risk electronic check processing account is a simple process. Please submit an application with all the necessary documentation. Accounts will be approved within 3-5 business days of receipt of the completed application file.
Although the requirement of documents varies from country to country, the following documents are required to support the application:
- a color copy of the signer’s driver’s license or passport;
- a voided check from the bank to which the processing funds will be paid;
- Three months’ worth of business bank statements; three to six months’ worth of payment processing statements; and
- documents relating to the formation of the business, such as Articles of Incorporation.
The best way to ensure that you get fast approval and start accepting payments is to make sure you have all your KYC paperwork ready prior to applying because every submission to a bank goes through underwriting and the sooner they have everything, the faster they can approve.