Everything You Wanted To Know About High Risk Echeck Payment Processing

The concept of electronic check payment processing has proved beneficial for businesses that are unable to receive ACH accounts due to chargebacks, refunds, or other reasons. ACH helps you to open high-risk echeck processing accounts.

If you switch to an electronic merchant system, it will allow you to pay higher fees & returns than any other form of payment. Irrespective of the sector you operate in, you can opt for ACH at any time. Here are some of the key benefits of Echeck Merchants.

  • Quick Permissions
  • Faster business operations
  • Opportunity to multiply business growth 

Virtually infinite processing power

High-risk accounts for echeck processing have no volume limits. Process as much amount you would like. Ten banks are incorporated within the High Risk Echeck Online Payment Methods. By eliminating reliance on a single bank, your processing risk is reduced ten folds.

  • Generate More Profits: Echecks are America’s most common form of alternative payment. Opting for an electronic check system is the best way to raise your revenue without extra effort. 
  • Verification for Electronic Check: This prevents theft, reduces the instances of return of items, and reduces production expenses. If you are an e-commerce company, with ACH, you can accept checks online. Watch your revenues expand. 
  • Accept Phone & Mail Checks: Unlimited virtual terminals for the safe processing of payments. 
  • Process in bulk: Easily process loads of transactions at one time. 
  • Recurring transactions: You can accept recurring fees on high risk echeck processing accounts. This feature is perfect for regularly delivered memberships, packages, or goods. 
  • Store your data in the cloud: With Electronic Cheque Clearing System, you can quickly monitor all transfers on any device. Its robust documentation process makes management simplified.

What is a high risk electronic check system?

Electronic checks are generally a terminology used to describe a deposit that is directly debited from a bank account. The customer prefers to pay with an electronic check at checkout and offers bank routing & account numbers instead of card data.

Echecks are Americans’ most common alternative form of payment. Millions of US shoppers frequently pay for electronic checks for products & services.

Although the controls are generic, not all electronic monitoring transfers are processed in the same manner. Just when an organization informs you that it offers the handling of electronic checks does not mean that the program can perform well for high-risk retailers.

Things to remember

High-risk merchants have different criteria than other merchants. Many high-risk merchants are unable to apply for ACH accounts because they are unable to sustain the low ratios needed by the ACH network for charges & returns. Additionally, ACH processors do not consider any high risk industries. Be vigilant when shopping for the production of high risk echecks.

Many processors actually print out “substitute” checks that clear into your company bank account. For high-risk traders, this hardly fits well. Substitute checks are not accepted by many banks. “Return to Maker” products, pushing the return ratios up.

Banks flag corporation accounts for chargebacks and dividends. High-risk merchants report that the account is shut down anytime a business bank has chargebacks and returns flowing through an account.

Benefits of high-risk echeck payment processing

Here are some of the perks that you get by choosing electronic checks for business transactions.

  • The inclusion of checks as a payment option boosts revenue by up to 30%. 
  • About 95% of US households have bank accounts and can use electronic checks to pay you. 
  • Reduce the abandonment of shopping carts. 
  • Greater versatility than any other payment method for refunds & chargebacks. 
  • Get rid of payment-delaying techniques. 

The High Risk Merchants Echeck Process

High-risk echeck imaging technology uses bank-to-bank image transfer technology. The completely automatic processing of electronic checks streamlines corporate processes. And it gives you more versatility than any other payment system, as far as chargebacks and returns are concerned.

All high-risk processing of the echeck passes into the electronic check portal. The processor is responsible for the chargebacks & returns. Cleared funds are settled with an ACH credit to your business bank account via the echeck payment processor, close to how funds are settled for card processing.

At-risk retailers with high chargebacks & returns prefer this method of processing electronic checks because it reduces much of the uncertainty over chargebacks & returns. If you wish to know some more about high-risk electronic check payment processing, feel free to hit us with a comment below.

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