Your customers need to rely on plastic to buy from your online store, right?
Not really. Over the past few years, a growing number of online retailers are adopting alternative payment methods in an attempt to reach out to more customers and streamline the sales process. A standout alternative to debit and credit cards are echecks.
As retail swiftly moves online, the use of traditional checks and cash is in steady decline. Cards are an obvious alternative, but many customers seem to prefer the ease and security of echecks.
According to the latest Payments Survey by the US Federal Reserve, the number of check payments in the country declined 3% in 2017. Meanwhile, the number of remote transactions on the federal automated clearing house (ACH) network grew by more than 5.3%. The rate of growth in echeck and ach payments has been intensifying in the past few years. Since the financial crisis and the rise of digital devices in the late-2000’s, online search interest for the term “what is an echeck?” has been steadily climbing.
Echecks are an electronic version of the physical checks that have facilitated commerce in this country for millennia. These echecks are part of a federally regulated network known as the automated clearing house (ACH) network. Nearly every commercial bank in the country is part of the network, which means echecks from just about any bank can facilitate the transfer of money between bank accounts.
To accept payments from customers, your business will require an ACH merchant account. These merchant accounts allow you to directly withdraw money from your customers’ bank accounts for good and services. You will require authorization from the customer for these payments, which can be arranged through a professional payment gateway.
An automated and digital payment system like ACH offers benefits to both customers and businesses across the country.
What is an echeck for customers? It’s a fast, simple, and secure payment method. Echecks help customers transition to the digital age with a payment system that seems familiar. Because the system replicates traditional check payments, customers already have an intuitive grasp on how it works and how payments can be controlled. This convenience is coupled with the same degree of data security and privacy that customers expect from traditional checks.
What is an echeck payment for your online store? It’s a reliable and cost-effective way to offer convenience and boost sales. By joining the ACH network with a merchant account, you join a network of millions of legitimate businesses from across the country. According to the NACHA’s latest report, the network handles more than 25 billion transactions worth an estimated $43 trillion every year. That’s the largest national payment network of its kind in the world.
ACH is also relatively cost-effective. Transaction fees are low, there’s capacity for high-ticket purchases, and same-day transactions are possible on the network. Offering this convenience can expand your pool of potential customers, reduce costs, and boost sales in the long run.
What is an echeck payment gateway? It’s usually a simple developer tool offered by your payment processor to help you integrate this network with your online store. APIs, mobile SDKs, virtual terminal software, and built-in encryption can help you easily add this payment solution to your store. Some payment providers also allow you to store and manage transactions in the cloud, which makes it a lot easier to offer this convenience to your customers.
With a trusted payment gateway and some professional developer tools, you can help customers complete transactions and buy goods from your platform securely.
Customers and businesses across the country are increasingly looking for better payment alternatives. Many are asking themselves - what is an echeck?
Echecks are a digital form of payment that live on the federal ACH network. The network handles billions of transactions worth trillions of dollars every year. Signing up with a trusted payment processor who can provide you a merchant account and some secure developer tools can help you offer this convenience to your customer.
While your customers will appreciate the simple and fast payment infrastructure, your business will benefit from reduced risk, lower costs, and better sales.
Have you considered a payment alternative? Do you wish to streamline your online sales with echecks?
Speak to our experts today.