Posted by NationalACH on Jul 05, 2011
high risk ach, high risk processing, high risk merchant accounts

High Risk Merchants Get More Sales with E Checks

When high risk merchants do not offer electronic check payments, sales are lost.  Studies indicate that 29% of Americans do not have credit cards

When you accept checks online you get sales that don't have cards or are maxed out on cards. And many shoppers simply to pay with an electronic check instead of a card. The more ways a customer has to buy, the more orders will result.  

Electronic check processing electronically debits payments from buyers' bank accounts. Funds are automatically are credited to your business bank account.  

Checkout with Electronic Checks

Electronic checks are the most popular alternative payment method for internet purchases.  More than 30% of websites already offer electronic checks at checkout.  Sites that don’t provide electronic checks as a way to pay lose sales to sites that do.

Processing risk is reduced when a payment is made with an echeck rather than with a card.  Card payments permit customers to chargeback a transaction for 180 days.  With echecks, customers have only 40-60 days to revoke a transaction. 

And far fewer people revoke electronic check transactions compared to those who chargeback cards. To chargeback a card transaction, customers simply dispute the transaction with the card issuing bank.

Very few customers are willing to go through the time & effort  required to revoke an echeck payment.

To revoke an electronic check payment, buyers have to visit their bank and supply supporting documentation to substantiate the claim. And many banks require customers to sign an affidavit. 

Echeck Processing Save Money Over Cards

High risk merchants discover that electronic check processing saves money on payment processing fees.  Rates for electronic checks are 50-80% less than comparable rates for card processing.

Savings can be dramatic for high risk merchants.  In addition to lower processing rates, reserves are are lower or may not be required for echeck accounts.  This means more working capital is available to run the business, rather than being tied up in a reserve account.

Accept Checks Online to Boost Sales

While all internet sites can benefit by offering electronic checks, the payment option is particularly beneficial for certain high risk merchants.

Internet sites selling higher ticket items, with pricing above $500, such as electronics, jewelry, collectibles, furniture and travel packages find echeck processing is an excellent alternative to card payments. 

It is easier to accept payment for high ticket items through an echeck account than with card processing. And contingent liabilities for chargebacks and fraud are significantly lower when the payment is made with an electronic check instead of a card.

Companies with recurring billing models such as membership sites, find electronic checks create stable, low-term cash flow.  Customers seldom change bank accounts.  Recurring payments can continue for years without interruption.  Compare this to cards, where 25% are reissued each year resulting in revenue leakage for recurring payments.


High risk merchants that accept checks online get more sales. 

Electronic checks are the most popular alternative payment method for US shoppers. Millions of Americans regularly pay for goods & services online with echecks.

The more ways customers can pay you, the more money you make. Add echecks to your checkout page. And watch your sales grow.

Are you a high risk merchant that wants to increase sales & profits with echeck processing?

Contact today