Posted by NationalACH on Jan 25, 2021
High Risk Echeck Payment Processing

ACH and echeck payment processing for high-risk merchants.  Fastest way to get more orders.  Gain a competitive edge in the market.

Due to the nature of some high-risk merchants, getting the right ACH or echeck payment processing solutions in place can be a frustrating process.

Some merchants can find themselves classified as being ‘high risk’ by banks and card companies simply because of the industry they operate in. This can affect firms from online gaming through to airlines, travel firms, international shipping companies, and many more. And with echeck payments proven to increase online merchants’ sales by almost one third, this a problem well worth fixing.

The high-risk classification can either mean that account applications are rejected flat out, or that higher rates are applied to transactions because of the risk they represent. So for businesses that are looking to grow but cannot get the right payment infrastructure in place due to no fault of their own, this can prove frustrating.

The Proof Is In the Numbers

It is estimated that 94% of all households in the US have access to a bank account to be able to make echeck payments. With echecks being so accessible and the lack of restrictions on payment processing compared to card payments, echecks represent a friction-free alternative.

The digital payment market CAGR is forecast to grow by 17.6% by 2025. Since the digital payment continues to grow, with it so does competition in the market. This means that offering quick and efficient payments to your customers is now an absolute fundamental to a successful online high risk merchants.

How Echecks Help High Risk Merchants

Echecks enable high risk merchants to accept payments from bank accounts. You get sales from customers who do not have cards, are maxed out on cards, or simply want to pay you through a bank account rather than card.

More than 30% of online merchants offer echecks as a payment option at checkout.  The more ways buyers can pay you, the more sales you make.  Don’t risk losing sales to your competitors who offer echecks.  Adding echecks to your checkout page is the fastest way to increase sales with no additional work.

Echecks for Recurring Billing

Echecks for Recurring Billing
Echecks for Recurring Billing

For services businesses that operate a subscription billing model for their customers, echeck payments also offer peace of mind for finance and administration departments. Bank accounts rarely change.  Therefore, there is little need to worry about updating payment details.  Recurring billing continues without interruption.

Compare this to cards.  More than 20% of debit and credit cards are reissued each year.  Updated card information needs to be on file for recurring payments to be approved.  While some cards can be automatically updated, many cannot be and require manual intervention to update.

Using echecks also means lower fees for businesses when compared to standard credit card and debit card transaction rates. This cost saving is made possible because there is no interchange on echecks.  Therefore, processing rates for ACH and echecks are 50-80% lower than card processing. 

Secure Echeck Processing

The enhanced security features that echecks offer both businesses and consumers is greater than simply avoiding entering card details online. With authentication, encryption, digital signatures and duplication detection, fraud and dubious payments are kept to a minimum.   

Easy Quick Payment Method

User experience is an increasingly crucial part of online trading. Complicated checkout procedures or glitches in the payment process mean that customers are statistically likely to abandon the process. And having spent time and most likely marketing money on getting that customer to your website and so close to completing a purchase, it is a waste to then lose out.

Echeck payment processing at checkout is as easy as card payments.   The only difference to the customer is that they enter their bank account information instead of card details.

Find Out More

Find out more and apply online for our high risk processing merchant accounts

Free free to email Or call 866-ACH-7600 today.