Posted by NationalACH on Dec 10, 2020
eCheck Payment Processing

High risk merchants can find it difficult to be approved for ACH accounts.  Revokes and returns must be low to qualify for an account.  Now, there is a better option.     

How are ACH Payments Processed?

The ACH network provides the back-end payment processing for ACH payments. For high risk merchants with low returned and revoked transactions, ACH is a low-cost perfect solution, saving you more than 50% over card processing.

To stay compliant with ACH requirements, merchants must be sure that the number of revoked transactions is 0.5% or below, and returned transactions are no higher than 15%. These return and revoke rates are all regulated by NACHA, the body that oversees the ACH network.

The low ratios for revokes & returns can be challenging targets for high risk merchants to maintain. This is underlined by the fact that the permissible chargebacks on card payments is double that allowed on ACH transfers.

Risks of ACH Processing for High Risk Merchants

Risks of ACH Processing for High Risk Merchants
Risks of ACH Processing for High Risk Merchants

ACH transactions are governed by the ACH network. All companies accepting ACH are bound by the rules and regulations set by, the governing body of the ACH network.   

For legitimate businesses in industries such as student loans, debt collection companies, and lending organizations, ACH payments may not work out.  The demographics of the customer base means that revokes and returns are an issue.   Receiving payments from people with bad credit or high debts inevitably results in higher returns and revokes than allowed by the ACH network.

And not all industries are acceptable for ACH processing.  For instance, adult entertainment, nutraceuticals, peptides, kratom, SARMS, credit restoration and other industries are prohibited by most ACH processors. 

Special Echeck Platform for High Risk Merchants

If your revokes and returns are higher than allowed by the ACH network or if your company is not qualified for ACH due to industry, you now have a solution.

Our special platform for high risk echeck payment processing gives you greater flexibility for revokes and returns than any other method of processing. 

From a user experience ACH and echecks are similar.  The difference is on the back end.

Our unique echeck platform clears all transactions through the processor’s account.  The processor assumes liability for returns & revokes.  Cleared funds settle to your business account.  The only transaction your bank sees is an ACH credit for settlements, which protects your business operating account.

Finally, no more worries about maintaining the low ratios of revokes and returns required by the ACH network. 

All echeck accounts have unlimited processing volumes.  You can process as much as you need.  Ten banks are integrated with the platform, eliminating the reliance on a single bank.  Ensuring you always have processing capacity to grow your business. 

Tips for High Risk Merchant Account Approval

There are a few tips and tricks to look out for to improve your chances of success in opening your high risk ACH or echeck merchant account

One of the main factors that underwriters look for when considering a company’s application is risk. One aspect of this is the customer service that a company provides. Underwriters will often call an applicant organization’s customer service line anonymously to check efficiency and expertise.

Even though it may not always be possible to answer all calls immediately, providing a clear and prompt voicemail message is essential. It is then important to return calls in a prompt and professional manner. Similarly, on your email service it is good practice to use an autoresponder to confirm when a reply can be expected – and then deliver on that commitment. 

Underwriters will also read reviews about the applicant and look into the background of the directors and products. Before you complete your application, check out your firm’s online footprint and try to manage any bad reviews or comments. This can be successfully accomplished by replying in a prompt and professional and courteous way. Not only is this good practice in general, but it hopefully leaves a good impression with the assessors. This in turn limits your risk in the eyes of the underwriters.

Reasons to Accept Payments through Bank Accounts

Payments through bank accounts are the most preferred alternative payment method for US shoppers.  The more payment options you offer at checkout, the more sales you make.  More than 70% of US ecommerce sites offer a way to pay with a bank account rather than a card.   

More than 95% of Americans have bank accounts.  Less than 70% have cards.  By accepting payments through a bank account you get orders from customers that do not have cards, are maxed out on cards or simply prefer to pay through a bank account rather than a card.

If you do not offer your customers a way to pay with a debit from a bank account, either with ACH or echecks, you risk losing business to your competitors that do. 

Want more info about ACH or Echeck Payment Processing?

Find out more today.  Email Or call 866-ACH-7600 today.