Posted by NationalACH on Apr 24, 2014
ACH merchant Accounts

E Check High Risk Processing

High risk merchants experience sales “lifts” up to 20% simply by adding electronic checks as a payment option. Electronic checks automatically debit payments from customers’ bank accounts and deposit the funds to your bank account.

Electronic checks can be processed either through the ACH network or through Check 21 bank-to-bank image transfer.  If your anticipated revoked transactions (chargebacks) are under 0.5%, ACH is a good choice since rates for ACH processing is lower than for Check 21.

For merchants that expect chargebacks to be higher than 0.5%, Check 21 is the way to go.  Check 21 processing permits chargebacks over 0.5% because it not subject to NACHA  regulations (NACHA is governing body of the ACH network)

Applying for a High Risk Merchant Account

Establishing an account for electronic check processing is easier than setting up a card processing account.  The application process, however, is similar.

You submit an application form along with due diligence documents.  Necessary documents include proof of identity, recent business bank statements; voided check from depository account, and business formation documents.  Account approval takes 5-10 days.

Integration to your website is accomplished via an API.  A virtual terminal can be included which enables you to take orders by mail or over the telephone.

Recurring Billing for High Risk Merchants

Some high merchants have subscription or recurring billing models.  Recurring payments are included as a standard feature on all electronic check processing accounts.

Encouraging your recurring billing customers to pay you with electronic checks rather than cards protects your long-term cash flow.  Customers rarely change bank accounts.

Compare this to cards where one in five cards are reissued every year.  Each time a card is reissued, you have to update payment information, which gives customers an unnecessary opportunity to cancel the subscription or service.

Recurring payments made with electronic checks increases the life-time value of customers to your business.  Once a electronic check recurring payments are established, revenue continues month after month without any need to update payment information.


Accept checks online.  Accept check by phone, mail, and fax orders. Electronic checks are the most popular alternative payment method for US shoppers.  

Offering your customers alternative payments with echecks inceases your profits. While reducing your payment processing risk

Are you a high risk merchant that wants to establish an echeck account? 

Contact today