Merchants selling on the internet that are not accepting electronic checks are losing business. Offering electronic checks as payments can increase sales up to 29%.
The boost in sales comes from payments for orders that otherwise would have been lost. Depending on the ACH electronic check provider, echecks can also cost substantially less than credit cards for a merchant to accept as a payment method.
Accepting checks online will increase sales by reaching out to households and shoppers who do not have credit cards or do not want to provide credit card information online. One of the limitations of accepting online checks is that the echecks clear through the ACH network and take time to clear. And, there is the risk of bounced checks.
Merchants should wait to ship products until the electronic check clears through the consumer’s checking account. Merchants can get guarantees on online checks by paying extra discount points. But, unless the average ticket on a sale is high, check guarantee doesn’t make sense because, over all, the cost of guarantee will be higher than bounced check losses.
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