5 Tips for Hassle-Free eCheck Payment Processing

EChecks are a digitized form of conventional paper checks. Technological advances introduced a quick and easier eChecks payment gateway that is inexpensive and a safe mode of payment.

Understanding electronic check payment processing can often get tricky, being in the long run of traditional check payment. However, to make the process as seamless as possible, here are some tips that you can follow.

Get Started With the Basics

Unlike paper checks, eChecks require some extra upfront work as you’ll need to process customer checking information via ACH (Automated Clearing House) network. Herein, you must first have an echeck merchant account with a payment processing vendor. This will help you with electronic payments and connect you with different entities involved in eCheck processing.

Next, you’ll also need a way to deliver your customer’s checking information. Concerning this, you can use systems like a virtual terminal or check scanner, which securely records customer’s account information and processes recurring payments automatically.

Keep an Originating ID Handy

At times, ACH transactions can get rejected because your customer’s bank won’t allow the withdrawals. As a result of this, the electronic check processing will fail and return a reject code R29.

However, this nowhere means that the customer can’t pay you via eCheck. All they need to do is to provide some additional information to their banks to facilitate the process. Meanwhile, you should have your payment processor’s originating ID handy. Once the customer provides the required information, transactions with your company will be allowed.

Learn About Other ACH Reject Codes

There can be certain other reasons electronic payment processing may fail. Being mindful of some common reasons can help you avoid payment delays and extra charges.

However, you should specifically be wary about ACH rejects that start a Notification of Change (NOC). These can include a change in your customer’s account number or the bank transit/routing number. Remember to fix these changes before you run the next transaction, or you’ll be charged a fee.

Never Make Transactions Using the Outdated Data

Although a virtual terminal can help you prevent NOC charges, know that it’s only possible to run the transaction using the updated banking details. If you rerun an old operation with outdated data, it may result in other ACH rejects and NOC.

Hence, always initiate new charges using the customer’s account on file to ensure working with the most up-to-date information.

Authorization Is Necessary

One of the main advantages of accepting ACH payment processing is that purchases made via eCheck can’t be disputed easily, unlike credit card purchases. However, there are only three exceptions that call for disputes:

1. If the ACH payment was not authorized
2. If the ACH payment was processed earlier than the authorization
3. If the ACH payment was for a different amount of money than was authorized

Obtain authorization formulating these details to avoid any disputes that disturb your business’s cash flow.

Premiumpymts is here to help you with remote payment solutions if you want to speed up your business payment cycle. To learn more, get in touch with us at (954)-934-9004 or (305)-747-5855.

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