Posted by NationalACH on Nov 13, 2015
Online Money Transfer

ACH and Check21 echeck processing service for online money transfer companies.  US customers can quickly and easily send payments using a direct debit from their bank account.

The World Bank reports that money remittances were $436 billion in 2014 and will increase to $518 billion by 2016. The majority of the payments are sent by migrants to families left back home.

Payment Processing and Online Money Transfer Platforms

Integration to your online transfer processing platform is accomplished via an API. All transaction, management, and reporting functions will reside on your system, simplifying account reconciliation. Virtual terminals and batch uploads to a secure FTP site can also be provided.

There are two methods of debiting a US consumer bank account. One is through the ACH network. The second is through Check 21 technology.

Many online money transfers companies are moving to Check 21 processing.  Check processing is quicker to setup. And Check 21 requires far less paperwork to establish an account compared to ACH processing.

Comparison of Check 21 echecks with ACH

The end result of both eCheck21 and ACH processing is the same. Money is debited from US consumers’ accounts and settled to the online money transfer company account.

The chart below shows the benefits for money transfer companies of  Check 21 compared with ACH payment processing.

3 days to clear transactionsFast clearing. Same day clearing for transactions submitted before 3 pm. Next day clearing for transaction submitted after 3.
Settlements take 2 days after transactions clearSettlement available same day transactions clear
Third party ACH processor receives the funds and settles to youDeposits directly to your business account, eliminating the third party
Extensive paperwork and documentation necessaryRapid account set up with minimum of paperwork
Returns and revoked transaction thresholds requiredMore flexibility on returns and revoked items
US transactions onlyInternational and US transactions

eChecks on the Checkout Page

On the checkout page, your customer selects “pay with echeck” option. Customers enter the transaction information, including name, address, and account information and hits the “submit” button. Digital signatures can be used as an additional security feature for online payments, although this is not required for processing.

Electronic checks are a trusted way of making payments online. Any customer with a US bank account can send money. Rates for echecks are much less than for card transactions and are the preferred method of payment for most money transfer firms.

Are you an online money transfer company that wants to accept echecks?

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