Posted by NationalACH on Dec 20, 2012

Merchants that offer customers multiple ways to pay increase orders.  It’s only common sense.  The more payment options you provide to shoppers, the more sales you will make. After cards, echecks are the most popular to way to pay online. Close to 30% of online merchants already offer echecks on the payment page. At checkout, the buyer clicks “pay with echeck”.  The transactions are processed through the Federal Reserve bank and settlement of funds is made to the merchant’s bank account.



High Risk Merchants

Merchants in high risk categories find it easier to establish an echeck account than one for card processing.  Echeck merchant accounts have fewer industry restrictions than do merchant accounts where the card brands wield an inordinate amount of control and power.

Merchants in all types of industries can obtain echeck processing accounts.  Travel, electronics, financial services, collections agencies, online pharmacies, adult entertainment, payday loans, and ecommerce merchants selling any type of goods or service can be approved for accounts.

How Electronic Checks are Processed

There are two technologies that are used to process echeck transactions.  One is ACH processing; the second is Check 21.  Both clear transactions through the Federal Reserve.

The choice of which technology to use depends upon the projected numbers of returns and chargebacks associated with an account. The ACH network is guided by NACHA regulations.  Chargebacks (also known as “revoked transactions”) must be kept under 0.5% for ACH processing.  Returns rates must be kept under 15%.

High Risk Merchants Prefer Echecks

Many high risk merchants find restrictions of ACH echeck processing very challenging. Few can keep chargebacks & returns within the parameters set by NACHA.

If you chargeebacks in excess of 0.5%, Check 21 echecks are a better option.  Check 21 is governed by check law and the Uniform Commercial Code, not the NACHA. 

As a result, Check 21 electronic check processors allow far greater latitude on returns and chargebacks. Although rates for Check 21 processing are higher than for ACH high risk accounts, the greater flexibility allowed by  Check 21 processing more than compensates for the rates.

In addition, international merchants that want to capture more sales from US buyers can establish Check 21 processing accounts.  ACH processing requires a US depository account in order to establish an account.  Check 21 processing is available for international merchants that do not have US depository accounts.  Settlement funds can be wired to international bank accounts.


Accept checks online. Accept check by phone, mail & fax orders.  The more ways customers can pay you, the more sales you make.

Electronic checks are the the most popular alternative payment method for US shoppers. Millions of Americans pay for goods & services online with an echeck.

If you don't accept echecks, you risk losing sales to your competitors who do.

Are you interested in increasing sales and profits with an echeck account?

Contact today