Posted by NationalACH on Sep 19, 2013
eChecks, Check 21, NACHA, ACH Payment Processing, High Risk Merchant Accounts

High Risk Merchants Move from ACH to Echecks

High risk merchants will tell you how challenging it is to remain compliant with restrictive ACH payments processing regulations regarding chargebacks on echecks. 

It is virtually impossible for many high risk merchants to comply with rules demanded by NACHA , the governing organization for ACH payments, which require chargebacks stay under 0.5%.

Echecks  process through bank-to-bank transfers.  Bypassing the ACH network completely.

Because  echeck transactions do not process through the ACH network, high risk merchants do not have to comply with restrictive ACH regulations.  Giving you much greater flexibility on chargebacks.

Top 5 Benefits of eChecks 

  • eChecks Clear Quicker.  Electronic checks through the Federal Reserve on either the same day or next business day depending upon when the file is submitted.  Much faster than the 3 day clearing time for ACH transactions.
  • More Banking Coverage.  Echecks cover more bank accounts than ACH processing.  Electronic check payments can be deducted from all financial institutions covered by the ACH network plus credit unions, brokerages, savings & loans, and smaller banks which the ACH network does not include. 
  • Rapid Notification of NSF.   Since Check 21 echecks clear fast, you are quickly notified if funds are not available.  And, shorter clearing times offer you better protection against fraudulent echecks transactions.
  • Get rid of ACH Network Restrictions.  Echecks are not subject to NACHA regulations which limit chargebacks to 0.5% and returns to 15%.  With echecks, you have far greater flexibility on returns and chargebacks.
  • Decreased Risk  It’s harder for customers to dispute transactions.  With echecks, customers need to visit a bank location in person and attest that a transaction was fraudulent.  This requires additional effort on the part of a consumer.  And few people are willing to sign a fraudulent affidavit.  


Echecks are a generic term often used to describe both ACH and electronic check processing.  

ACH transactions are subject to restrictive rules on returns & chargebacks with which most high risk merchants cannot comply.

Electronic checks are processed through bank-to-bank transfer based on Check 21 technology. Providing much greater flexibility for chargebacks and returned transactions.  

High risk merchants discover that echecks are the solution of choice to accept checks online.

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

Contact today.