Posted by NationalACH on Feb 16, 2015
card processing for lenders

Lenders Increase Profits with E Checks

Payday loan merchant accounts with electronic checks are proven way to get more payments.  

In addition to payday loan merchant accounts, title lenders and installment loan companies can readily set up an echeck account.    

Echeck processing makes it easy for online installment and payday loan merchants to accept electronic checks for  for repayments from borrowers. Borrowers repay loans by authorizing direct debits from a bank checking or savings account.  The funds are then transferred to the lender’s bank account.

In addition, lenders use ACH credits to deposit funds into borrowers’ bank accounts.  Direct credits to borrowers' bank accounts ensure receipt of funds in a timely fashion

Echeck services add value and profits for lenders. Standard features of an echeck account include:

  • Echeck debit repayments from borrowers’ bank accounts
  • ACH credits of funded loans into borrowers’ bank accounts
  • Stablizes recurring payments, protecting cash flow.
  • Full online reporting quickly tracks all transactions enhancing customer service

Echecks Better than Cards for Recurring Payments

Millions of Americans are already use the ACH network to pay bills.   Electronic checks are a trusted method of payment for US consumers.  

More Americans have bank accounts than cards.  And many US consumers are comfortable paying back loans with an echeck.

Echecks let you debit payments from US checking or savings account. Borrowers can receive ACH credits for loans to their bank account.  

Most importantly, echecks are a more stable and reliable source for collecting recurring payments of loans than are cards.  

Once a bank account is established, it is rarely changed.  Most borrowers find it’s simply too much of a hassle to change a bank account.  Especially when that account is already linked to payroll deposits, online bill payments etc.

Compare this with cards.  Each year more than 20% of all cards are reissued due to data breaches, expired numbers, bank mergers etc.  Updating recurring card payments is a challenge. 

And, it’s far easier for a card payment to be charged back to the merchant than an electronic check payment.  


Lenders can easily set up echeck processing services.  The application paperwork is straight-forward.  You submit an application along with supporting documents.  Approval of accounts takes 5-7 business days.

With an echeck account, you can accept checks online.  Accept check by phone, fax or mail payments. 

APIs make it easy to take interface with your website.  Or you can process payments through virtual terminals or FTP batch uploads.

Setting up your customers for automatic recurring billing is simple.  Schedule payments on any interval you choose.

Are you a lender searching for an echeck account?

Contact today.