High risk ACH payment processing applies to companies that traditionally have a higher number of transactions that are revoked by customers. .
High risk ACH merchants fall into a different pricing category than low risk ACH merchants. Low risk companies pay a flat rate per transaction, receive settlement faster, do not have any reserves, and are considered highly desirable accounts.
High risk ACH merchant accounts have different pricing criteria. Discount rates are often applied in addition to transaction fees. If there is no discount rate higher transaction fees apply. Rolling reserves ranging from 5-10% are established. Settlement times range from 3 -7 days.
High risk ACH merchant accounts almost always process through a 3rd party processor who underwrites the liabilities associated with high risk ACH processing. This means the ACH processor is responsible to the bank to cover any losses on an account if a merchant goes out of business or does not meet its financial obligations.
The number of 3rd party ACH processors has declined significantly within the past few years. And, as the banks have continued to merge, choices for high risk ACH processing have continued to constrict.
High risk ACH processing is certainly still available. High risk merchants need to be prudent and investigate a high risk ACH processor thoroughly before doing any business with them.
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