High risk merchants discover adding electronic checks as a payment option is an easy way to increase sales Electronic checks are the most popular alternative payment method for internet shoppers, second only to cards.
Electronic checks can be processed either through the ACH processing network or via Check 21 bank-to-bank image transfer. The decision on which technology to use depends upon the particular needs of each business.
The advantage of Check 21 processing is that it allows more latitude for revoked transactions than does the ACH payments network. For merchants that cannot keep revoked transactions under 0.5% as required by NACHA, Check 21 is a good option.
High risk merchants can begin processing through the ACH network and then move to Check 21 if revokes are higher than 0.5%.
The disadvantage of Check 21 is that not all banks are equipped for image transfers. This means that there can be a longer time for returns to show up in the system. And, some returns must be handled manually, which adds to the expense of returned transactions.
Regardless of the chosen technology, any high risk merchant serious about increasing revenues is wise to add electronic checks as a payment option on the checkout page.
Capture more sales from buyers who do not have credit cards, are maxed out on cards or who simply prefer to by direct debit from a bank account using an electronic check.
Are you a high risk merchant that to increase sales with an echeck account?
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