Echeck Payment Processing for High Risk Merchants

If you are a high risk merchant unable to obtain an ACH account due to high returns, revoked transactions or type of business, echecks are the answer. Electronic check payment processing gives you far greater flexibility for returned and revoked transactions than any other payment method. All high risk merchants are welcome to apply.

  • Fast Approvals. Speed time to market. Capture more sales quickly.
  • Unlimited Processing Capacity. High risk merchants have no caps on electronic check processing. Get the capacity you need to manage & grow your business.
  • Increase Sales. The more ways customers can pay you, the more money you make.
  • Electronic Check Verification. Keep returns low and reduce costs.
  • Ecommerce. Accept checks online. Watch your sales grow.
  • Accept Checks by Phone & Mail. Virtual terminal for rapid processing of MOTO echeck payments.
  • Bulk Processing. Batch upload echeck payment processing files to secure servers.
  • Recurring Billing. Recurring payments for memberships, subscriptions or products shipped on a regular basis.
  • Cloud Reporting Quick tracking of all electronic check payments. Robust reporting simplifies management.


What is an ECheck Payment Processing?

Electronic checks or echecks are generic terms used to describe a payment that is automatically debited from a bank account.  At checkout, the consumer chooses the echeck option.  The customer provides bank routing and account numbers rather than card information.

Echecks are the most popular alternative method of payment in the US.  Millions of Americans regularly pay for goods & services with electronic checks. 

Although the term checks is generic, not all electronic check transactions are processed the same way.  Just because a company tells you it provides electronic check processing does not mean that the service will work well for your company. 

When you are searching for an echeck merchant account, it’s important for you to understand how an electronic check will be processed on the back end before deciding on which check processor to chose. High risk merchants have different needs than standard or low risk businesses.


Echeck Merchant Accounts for High Risk Merchants

The electronic check processor of choice for high risk merchants utilizes bank-to-bank image transfer technology.  End-to-end electronic check processing automates payments and streamlines business operations. 

All echeck payments are processed and cleared through the echeck gateway.  The electronic check processor assumes the responsibility for chargebacks & returns.  Cleared funds are settled to your business bank account by the echeck payment processor via an ACH credit, similar to how card processing funds are settled. 

High risk merchants with higher returns and revoked transactions love processing electronic checks in this manner.  Revoked and returned transactions permitted are significantly higher any other way of method of processing payments. 

In addition, there are no industry restrictions.  All businesses classified as high risk merchants are welcome to apply.

Be careful when shopping for echeck services.  Some electronic check processors simply print out “substitute” checks which then clear through your business bank account.  This rarely works well for high risk merchants. 

Banks flag business accounts that have returns & revokes running through them.  If you process substitute checks which are returned or revoked, your risk having your business bank account closed.  Also, some banks will not accept substitute checks.  The items “Return to Maker”, driving up your return ratios.


ACH Echeck Payment Options for High Risk Merchants

Electronic check payments can be processed through the ACH network.  ACH is good option for standard and high risk merchants if the businesses maintain the low ratios for returned and revoked transactions required by NACHA, the governing body of the ACH network.

To maintain an ACH echeck merchant account, revoked transactions must stay below 0.5%.  Depending on what is being sold, it can be challenging for both standard & high risk merchants to comply with this requirement.  Returned transactions cannot exceed 15%, which can also be difficult to achieve for certain high risk merchants. 

Some standard risk eCommerce and MOTO merchants report that ACH echecks are too restrictive due to the extremely low threshold for revokes.  As a comparison, card brands permit twice the number of chargebacks than allowed by the ACH network.      

Companies working with sub-prime customers such as loan modification; credit repair; student loan relief; collection agencies; and lenders have higher revokes & returned transactions due to the demographic of the customer base.  And often cannot comply with ACH requirements, no matter how hard they try.

Additionally, some high risk merchants may be unable to obtain ACH echeck merchant accounts due to the industry type.  Examples include, but are not limited to: adult merchants, cryptocurrency, nutraceuticals, precious metals, travel, MLM, and computer services.


Applying for Your High Risk Echeck Merchant Account

Applying for a high risk merchant accounts is a straight forward process.  You simply submit an application along with supporting documents.  Account approvals take 3-5 business days from the time the completed file is received. 

Supporting documents include:  Color copy of driver’s license or passport for the signer on the account; voided check from the bank to which processing funds will settle; 3 months business bank statements; 3-6 months of payment processing statements; and business formation documents such as Articles of Incorporation.

It is important that the signer on the account has good personal credit.  If credit is not good, consider adding a co-signer who has good credit.

Bank statements need to show positive cashflows.  Be sure that bank accounts have enough money to support the processing volume being requested.

Ecommerce merchants that accept echecks online need to have fully operational websites.  Ensure that all pages display correctly and that all links work well.   

Post refund and privacy policies on websites.  If products are being shipped, include shipping information.  Make it easy for customers to contact you by clearly displaying contact emails, customer service details, and hours of service.


Tips for High Risk Echeck Merchant Account Approval

Emails & phone numbers are often contacted by the underwriting teams to ensure that adequate customer service is being provided.  During the application process, you may not know if an underwriter calls or emails since it can appear to be simply another inquiry to you. 

During the underwriting process, answer calls & emails promptly.  For calls forwarded to voice mail, have a message that gives the name of your company and let the caller know when to expect a response from you.  If email auto responders are used, confirm the receipt of the email and when a response will be sent.  Then respond as promised.

These days, underwriters conduct online searches for reviews on the company, products, and owners.  It’s a good idea to do this yourself prior to submitting an application so you’ll know what the underwriters will see. 

Of course, most companies will not have perfect reviews.  Yet, if negative comments are uncovered, respond to them respond in a polite and positive manner.  This helps demonstrate that you care about your customers and your reputation.   


Benefits of Echeck Payments for High Risk Merchants

Here are the some of the advantages you get when offering electronic checks as a payment option.

  • Increase Sales. Electronic checks are the most popular alternative payment option for internet merchants.  30% of eCommerce sites already have electronic checks on the checkout page.

  • More Orders. Over 95% of US households have bank accounts and can pay you with electronic checks.

  • Decrease Shopping Cart Abandonment. Rescue sales that otherwise would be lost. If a credit card is rejected, offer electronic checks as another way to pay.

  • Higher Revokes & Returns. High risk echeck merchant accounts provide you the greatest flexibility for returns & revoked transactions than any other payment option.

  • Enhance Cash Flow. Electronic checks automatically debit your customers’ bank accounts.  Take away payment-delaying tactics and eliminate the wait for a check to arrive by mail.

  • Boost Revenues. By increasing customer payment options with electronic checks, you generate more sales and increase income.

  • Satisfy Consumer Demand. Buyers expect to have multiple forms of payments offered at check out. Most Americans already pay utility and household bills with electronic checks and trust the familiar payment option.

  • Competitive Advantage.  Offering electronic checks at checkout gives you a competitive edge over merchants that do not. Don’t risk unnecessarily losing a sale to a competitor.

  • Lower Administrative Costs.  Electronic checks virtually eliminates preparing and mailing customer invoices. Electronic checks decrease accounts receivable follow up costs, reduce bank fees; and lower administrative expenses.


Why High Risk Merchants Choose NationalACH for Echeck Payment Processing

The following are reasons high merchants use our electronic check payment processing services.

  • High Volume Capacity.  Once your high risk echeck merchant account is approved, you can process as much volume as you need.

  • Multiple Banks. The echeck gateway is connected to 10 financial institutions, ensuring that processing continues uninterrupted. 

  • Multiple Sales Channels.  Accept echecks online.  Accept check by phone & mail orders with virtual terminals.  Upload batch files to secure servers for bulk processing.

  • Returns & Revokes Flexibility. Electronic check processing allows you higher returns and revoked transactions than any other payment method. 

  • Electronic Check Verification. Transactions are verified through multiple proprietary databases.  Quickly identify good electronic check orders and decline bad ones.   

  • Superior Customer Service. Get the answers you need or the help you want from experienced represent ivies committed to your success. 

  • Recurring Billing.  Great for memberships and subscriptions. Convenient for customers who order reorder on a regular basis.  Split higher cost items into smaller installment payments. 

  • Competitive Rates. Transparent rates keep your processing expenses under control.   

Let Us Work for You

Your Success is Our Mission

At National ACH, we’ve done our homework on payments. Use our expertise to get the payment processing capacity you need to manage & grow your business. Our “niche” market is high risk & high volume payment processing. Yet, standard risk merchants also benefit from our services. We are always happy to talk with you, with no obligation. Discover top notch service along with the iron-clad secure processing solutions you are looking for. Payments power your business success.


National ACH is a one-stop-shop for all your merchant service needs.

Debit Credit Card Processing

High Volume US & International merchant accounts

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ACH Processing

Auto debits your customers’ bank accounts.  Electronically settles funds  to you

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Same Day ACH Credits

Money sent today is received today

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Echecks Processing

More flexible than ACH for high risk merchants

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