Online Money Transfer ACH and Check 21 Processing

Online Money Transfer ACH and Check 21 Processing

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?

Contact today

High Risk Processing with Echecks

Echecks Boost Sales

Echecks are the most popular alternative payment method for US buyers. High risk processing with electronic checks increases your sales and profits.

Echecks are an excellent solution for high risk merchants.  Echecks are processed through bank-to-bank date exchange based on Check 21 technology.  Echecks offer high risk merchants significant benefits compared to ACH processing.  

Echecks are also a valuable option for international merchants that want to accept electronic checks from US buyers. International merchant accounts for echeck processing are readily available for global ecommerce merchants targeting the lucrative American marketplace. 

Benefits of E Check Payments

Echecks transaction payment data is received electronically. The check processor clears the funds through its bank account.  Cleared funds are settled to your business bank account

The user experience paying with an echeck is the same as for an ACH payment.  At checkout, customers provide bank routing and account numbers rather than card numbers.  

Funds are electronically debited from buyers’ bank accounts.  Cleared funds are deposited to your business bank account.

Electronic check transactions clear within one to two business days, much faster than ACH payments.  And, echecks give you far greater flexibility for revokes and returned transactions than do ACH payments.  

Can Buyers Chargeback E Check Transactions?

Other than cash or wire transfers, there is no absolute protection against customers that are set on fraudulently disputing a transaction. Even a paper check at point of sale can be cancelled or a customer can claim the transaction was not valid.

With an echeck, a consumer legally has 40 days to dispute a transaction (compared to 60 days for ACH payment processing). There is a detailed process that the consumer must follow to dispute the transaction.

With echecks,  the customer must dispute a transaction with their own bank and file the necessary documentation. It’s a paperwork intensive process.  Documents must be submitted. Affidavits may be required.

Far fewer consumers are willing to go through the time consuming and frustrating hassle of filing a dispute with the bank. This is particularly true for smaller transactions. The risk for chargebacks is much less with an echeck compared to cards.  

E Check Payment Processing

It is much easier for high risk merchants to establish an echeck account than one for cards.  And rates are often lower than those for card processing.  

You can process echeck transactions

  • through an API integration to your website
  • by virtual terminal for check by phone phone and mail orders
  • and though a batch upload to an FTP site


Electronic checks are the most popular alternative payment method for US shoppers. Millions of Americans regularly purchase goods & services with electronic checks.

Accept checks online.  Accept check by phone, mail, & fax orders.  Convenient for buyers. Profitable for you.

Are you a high risk merchant that wants to increase profits while reducing payment processing risk?

Contact today


Selling Online? Are You Offering E-Checks?

Echecks Increase Sales for Online Merchants

Over the last 10 years the volume of ACH transactions has tripled.  One of the greatest areas of growth has been in online payments made with ACH echecks.

Echecks let online merchants and billers accept payments by automatically debiting customers’ bank accounts.  The funds are electronically deposited into merchants’ bank accounts.

The ACH network is one of the oldest and most reliable electronic payment networks in the world.  ACH has been successfully used for decades to send and receive payments.

Ecommerce Merchants Benefit from Echecks

Echecks are the most popular alternative payment option offered by ecommerce merchants, second only to card payments. The more ways buyers can pay, the more sales will be made.

  • Echecks give you a way to capture sales from buyers who do not have cards or are maxed out on cards. 
  • If a card declines, offering echecks as a payment option gives you another way to capture the sale.
  • Accept checks online from customers that simply prefer to pay you with an echeck rather than a card.  

ACH processing is a good fit for merchants that can wait two days to ship products.  And digital merchants selling low ticket items have little at risk when fulfilling an order paid for with an echeck.

Merchants needing quicker settlement of funds should consider using echecks using Check 21 technology. Check 21 echecks do not use the ACH network.  Rather, the checks are cleared through bank-to-bank transfer. 

High Risk Merchants and Echecks

The elimination of the ACH network “middleman” in processing payments means that transactions settle more quickly.  Electronic checks based on Check 21 technology is the most effective method for high risk merchants to accept checks online.

Few high risk merchants can comply with ACH rules for 0.5% in chargebacks and 15% in returns.

Electronic checks processed with Check 21 technology process outside of the ACH network. Giving you greater flexibility for returns and chargebacks.     


When you accept checks on line you get more orders.  

Many buyers prefer to pay you with an electronic check rather than a card.  And echecks are a great alternative payment payment method to offer customers that don’t have cards or are maxed out on cards.  

More than 30% of internet sites already offer echecks at checkout.  Don’t risk losing a sale to your competitors simply because you don’t accept checks online on your checkout page.

Businesses in all types of industries can obtain electronic check processor accounts.  Including business classified as high risk merchants.  

Would you like to accept checks online?

Contact today.

Echeck Processing for Subprime Lenders

Echecks are a proven effective way for lenders to collect payments from consumers in the subprime market.  This article discusses the benefits of electronic check processing.

What is the Subprime Market?

Subprime lenders make loans to consumers who may have difficulty keeping up with repayments.  Subprime lenders include payday loan companies, title lenders, loan modification companies, and installment lenders.  Debt collection agencies also work with the subprime market.

Working with sub-prime customers presents special challenges to lenders.  The demographics of the customer base mean that there are higher levels of returns for non-sufficient funds (NSF).  In addition, customers will often revoke a transaction (chargeback) claiming it was unauthorized.

Electronic Check Processing for Lenders

Lenders and collection agencies have long used echecks to collect loan repayments.  And with increased restrictions on using cards to repay loans, electronic check processing is more popular than ever.  

Echecks are particularly effective for loan repayments.  Bank accounts rarely change.  Most Americans have payroll direct deposit. And pay monthly bills automatically from a bank account.  As a result, changing an account is a major inconvenience,

As a result, when you set up electronic checks for loan repayments, recurring billing information seldom changes. Payments continue uninterrupted month after month.  

Echecks Now Replacing ACH Processing for Lenders

The biggest concern for lenders is returned and revoked transactions.

Changes in ACH network has forced many lenders to find an alternative.  ACH processing accounts now need to maintain returns under 15% and revokes under 0.5%.  Due to the demographic of the subprime market, these ratios are very hard to maintain.

As a result, most subprime lenders are moving to echecks that use bank-to-bank data exchange to process transactions.  Echeck technology, based on Check 21, is a fast, safe method to accept electronic check payments.

Echecks are an effective alternative for lenders who want to avoid restrictive ACH rules regarding chargebacks and returns.

Electronic checks are not subject to the same rules as ACH transactions.  Check 21 transactions are governed by check laws, and the Uniform Commercial Code, not ACH regulations.  Giving you far greater flexibility for higher returns and chargebacks.  

Electronic check transactions appear on the borrower’s bank statement in the same place as a paper check transactions.  Making it easier for borrowers to remember what was the payment was for and reducing revoked transactions.  


Echecks are the most effective way to assure repayment of subprime loans. Bank accounts rarely change.  Therefore, recurring payment continue uninterrupted.

Subprime lenders get many returns for non-sufficient funds.  And some borrowers try to revoke transactions to avoid repayment of loan.

Subprime lenders and collection agencies discover an echeck account is the best solution for loan repayments. Convenient for borrowers.  Profitable for you.

Interested in finding out how Check 21 electronic check processing can benefit your business? 

Contact info@NationalACH today.

Echecks for Online Pharmacies

Electronic Checks Increase Sales for Online Pharmacies

Online pharmacies provide an important service to consumers that do not have health insurance or cannot afford to pay the high cost of medicine in their own countries.  For years, consumers were able to buy pharmaceutical products with both credit cards and echecks,

However, within the past several years increasing pressure has put on banks on governments by the powerful international pharmaceutical companies.  The companies, under the auspices of protecting their “brands”, have made it very challenging for online pharmacies to obtain credit card processing accounts.

(Of course, most knowledgeable people realize that the pharmaceutical companies are less interested in helping those in need than in generating huge profit volumes for their companies.  This is a political discussion that we will avoid in this article.)

Echecks More Important than Ever

The lack of stable credit card processing accounts has led online pharmacies to depend more heavily on echecks to accept payments online.  Echecks are a convenient and easy way for buyers to purchase much needed pharmaceutical products online.

The growth of online banking and online bill pay has made customers comfortable with paying with a bank transfer.  Over 95% of US households have bank accounts and are able to make payments with echecks.

How Electronic Checks Work

With an echeck, at checkout, the buyer enters bank routing and account information rather than a card number.  The transaction is processed through the Federal Reserve, in the same way any echeck purchase is processed.

Echecks are not processed in “real-time”.  Instead the transactions are cleared through the Federal Reserve at midnight.  Returns for insufficient funds or “bounced checks” are generally reported to the merchant within 2-4 days.  Therefore, merchants may want to wait to ship product until that time, to minimize the risk.

Many online pharmacies have loyal, repeat customers who purchase goods.  This customer group represents a smaller risk to the merchant because of the established buying history.

Customers want and need the products that are being ordered.  Therefore, the risk of revoked transactions (chargebacks) for echecks for online pharmacies is quite low.  And, it substantially more difficult for consumers to charge back an echeck transaction than it is to chargeback a credit card.


Many online pharmacies are successfully processing high volumes of echeck transactions per month.  Online pharmacies do not have to be located in the US in order to take advantage of this important payment option.

Accept checks online. Accept check by phone, mail & fax orders. Echecks are a safe and secure method of accepting payments from your customers. 

Are you an established online pharmacy that wants to accept electronic check payments?

Contact today


Check 21 Payment Processing for High Risk Merchants


Check 21 is a fast, safe method of processing check payments.  With Check 21, transactions are cleared using bank-to-bank image exchange rather than through the ACH network.  Check 21 is an attractive alternative for high risk internet merchants to process electronic checks and avoid restrictive ACH rules regarding chargebacks and returns.

Check 21:  Secrets of Electronic Checks

Electronic checks account for up to 30% of internet payment transactions.  Yet, high risk merchants often have a difficult time complying with the NACHA regulations to keep revoked transactions (chargebacks) under 1%.

Any merchant that expects higher than 1% revoke rates is wise to consider Check 21 instead of ACH processing.  Merchants that prefer not to have to comply with NACHA regulations discover Check 21 electronic checks are an excellent alternative.

Merchants in high risk categories find Check 21 particularly beneficial technology for processing electronic checks.   Check 21 electronic checks accounts can be approved for industries that do not qualify for ACH processing accounts.  For example, online pharmacies and debt consolidation firms, among others, use Check 21.

Check 21 electronic checks processing permits a wide of transaction types to be sent electronically, expanding your target markets.  Check 21 processing includes transactions from institutions that do not participate in the ACH network such as credit unions, savings & loans, small banks, brokerages, and checks drawn on credit card accounts.

Check 21 Protects Merchants

Check 21 increase merchant processing options beyond the limited ACH network.  And Check 21 electronic checks offer added protections to merchants.  Check 21 electronic checks are not subject to the same rules as ACH transactions.

Check 21 transactions are governed by check laws, and the Uniform Commercial Code, not ACH regulations.  This reduces merchant risk from contingent liabilities.   For example, under NACHA rules, consumers have 60 days from the date they learn of a questionable transaction to dispute it.  With Check 21 electronic checks, consumers have only 40 days to dispute a transaction.

Check 21 transactions appear on the buyer’s bank statement in the same place as a paper check transactions.   Merchants can display purchase details on the bank statement.

This expanded descriptor makes is easier for buyers to remember what was purchased via Check 21 transactions and lowers the risk of chargebacks.   With ACH, transactions are displayed only as a line item on the buyer’s bank statement, leading to confusion about the purchase and resulting in higher chargebacks.

Check 21 Processing Saves Money

Businesses using Check 21 save money on payment processing fees.  Rates for Check 21 processing are less than fees for credit cards.

Check 21 electronic checks are s fast growing alternative payment option for internet and mail order / telephone order merchants.  With Check 21 technology, businesses can take advantage of electronic checks payment processing to power business growth, increase sales, reduce operating costs, and maintain a competitive edge.

For more information on how Check21 can help your business grow, contact