How PCI Compliance Relates to ACH Payments

What is PCI Compliance?

The Payment Card Industry Data Security Standard, commonly known as PCI DSS, has long been the leading authority in terms of security for the credit card processing industry. Its reliability makes PCI enormously valuable when it comes to protecting not just card information, but any type of sensitive data, such as ACH payment processing credentials.

The misconception that only large companies that have huge processing capabilities need to be concerned with security will hopefully become less widespread. Today’s context makes it necessary for all merchants, irrespective of size, to protect sensitive information, and PCI DSS provides the necessary framework to do so. 

PCI is required for card payments.  Yet, it also adds protection for ACH payment processing.  

How PCI Helps Prevent ACH Processing Fraud

PCI compliance was introduced in the payment industry to stem the tide of fraud losses, but unfortunately, not all entities respect it as they should. A recent study released by the American Bankers Association (ABA) suggests that, in spite of the best efforts of banks to prevent fraud, their task is rendered difficult by retail data breaches.

These breaches, which have become the norm in recent years, are made possible by insufficient security protection.

The good news is that ACH payment processing, online banking, and wire transactions taken collectively make up just 2% of the losses reported by the ABA. Fraud losses, however, continue to increase, mainly because not all parties involved in the payment ecosystem are equally concerned with security and prevention.

The consistent implementation of PCI standards would make it considerably difficult for fraudsters to make a breakthrough to your ACH payment processing.

Tips to Protect Your ACH Payment Processing Account

Each business that uses ACH payment processing needs to do its share in this collective effort to prevent fraud. Even though ACH payments accounts register less fraud attacks, the risk is far from non-existent.

Since ACH payments are often low risk, ACH transaction processing is largely automated.  Therefore, detection of fraud might not occur in time to stop it. Given the fact that business accounts have just 3 days to reverse an ACH payment processing fraudulent transaction, it would be unwise to disregard this risk.

Some components of the PCI standard considerably reduce the prospect of suffering ACH payment fraud.  These include:

• Maintaining a firewall
• Using encryption when transferring sensitive data
• Making sure that the virus protection is up to date
• Putting into place a security policy that each employee needs to follow

How Employees Contribute to Fraud

Fraudsters can get access to ACH payment processing  information by targeting employees with tried-and-tested techniques,

For example fraudsters install  malicious software as email attachments.   When the employee clicks on the attachment, the harmful software is installed.  Some newer, more sophisticated, and quite effective techniques involve social engineering and impersonation.

These threats can be addressed by providing training to employees that handle ACH payment processing information on how cybercriminals perpetrate their acts.  

Also, two-factor authentication is an increasingly used method of securing payment information.

Regardless of what security measures a merchant decides to adopt, they need to be implemented and followed as consistently as possible, until they become a part of business as usual.

Conclusion

Following PCI recommendations for safe payment processing is a wise strategy.  Protect your business by following PCI standards for secure processing. 

Interested in finding out more? Contact info@nationalach.com

Why Payment Processors Add E Checks

International and US payment processors understand that additional payment options at checkout result in more orders for merchants using the processing platform. The more ways customers have to pay, the more sales are made.

The US ecommerce market will hit $434 billion in sales within the next 2 years.  Merchants throughout the world want access to US buyers.  And depend upon their payment processors to help acquire more orders from US customers.

How can processors drive more transaction volume while helping their merchants get more sales? By providing the payment options preferred by US buyers.

Echecks are second only to cards as the preferred method of payment by US consumers. Over 30% of internet purchases are made with alternative payments such as echecks. In addition, echecks have substantially lower risk of fraud than cards.

Benefits of ECheck Payments

• Obtain orders from buyers that don’t have cards or are maxed out on cards.
• Get sales from buyers that prefer to pay with an electronic check rather than a card
• Alternative to card declines.  If a card transaction declines, offering an echeck payment option can rescue the sale
• E checks have far fewer chargebacks and returns than cards.

Integrating eChecks with Processing Platforms

Integration to your payment processing platform is easily accomplished with an API. All reporting and management functions are available to your merchants when logging on to your system.

Merchants can accept checks online.  And accept check by phone, mail, and fax (MOTO) orders by entering transactions in a virtual terminal.  Batch uploads to a secure FTP site are also available.

Electronic check processing is available for businesses in all industries, including high risk merchants.

eChecks on the Checkout Page

Electronic checks are a familiar method of payment for US consumers. At checkout, buyers select the “pay with echeck” option. The customer enters payment data information, including name, address, and account information, and submits the transaction for payment.

Electronic check verification is available, which gives you the ability to confirm account information prior to sending transactions for processing.  Check verification keeps returns low, saving you money on processing, while protecting the electronic check processor accounts.

For additional security, identity verification can be provided verify the identity of customers.  Digital signatures can be used one to verify the identity of customers.  These options are often used by high risk merchants or high ticket merchants.

Electronic checks are one of the best ways for international merchants to get more orders from US buyers. Helping your merchants boost sales while increasing profits.

Are you a payment processor interested in adding echecks to your platform?

Contact info@nationalach.com today

Echecks Increase Sales, Reduce Risk

Accept Echecks to Boost Sales

The more ways your customers can pay you, the more sales you make.   Echecks are the the most popular alternative payment method for US online shoppers.   Adding echecks to your checkout page is one of the easiest ways to get more orders.  

E Check Payments Increase Orders

Traditionally, credit cards have represented the most commonly used method of payment for US shoppers purchasing online.   Yet, echecks are increasing in popularity, with more than 30% of internet sites offering electronic checks as payment option at checkout.  

It is no longer enough to offer only cards as a payment option on your website. In order to gain an edge over your competition, it is necessary to diversify the available payment options so your customers can pay you any way they prefer.  

If you do not offer echecks, you are losing sales from customers that do not have cards, are maxed out on cards, or who simply prefer to pay you with a direct debit from a bank account.  Merchants that accept echecks report sales boosts of up to 20% when adding echecks as a payment option.

Echecks are processed either through the ACH network or with Check 21 technology.  The user experience is the same.  Customers supply their bank routing and account numbers.  Payments are electronically debited from the customer’s bank account and deposited into your account.

eCheck Benefits to You

• Merchants who accept checks online report immediate sales “lifts” up to 20% after adding echecks at checkout.  Get sales from buyers who don’t have cards, are maxed out on cards, or simply prefer to pay with an echeck.
• Reduced risk of chargebacks.  Credit card payments can be charged back up to 6 months after the transaction.   The chargeback risk for echecks is only 40-60 days.  And it is much more difficult to charge back an echeck transaction than a card payment.
• If a card payment declines, offer an electronic check payment option and rescue the sale.
• Echeck account processing is easier to establish than card processing. And often has lower rates

Merchants that rely on monthly subscriptions to ensure service continuity for their customers can use the recurring billing feature of ACH echecks and Check 21 echeck payments. As opposed to card information, bank account details rarely change, so the success rate of recurring electronic check transactions is much higher than with recurring credit card transactions.

High-risk merchants will find electronic check payments even more advantageous, as credit card payments are becoming notoriously difficult to get, particularly for those industries that are targeted by regulators. Even if service is eventually provided, the processing costs and fees will be high, and the payment processor can suspend the merchant account if it decides to apply more stringent underwriting rules.

Growth of Echecks for Online Payments

The popularity of ACH payments is reflected in the quarterly reports released by the National Automated Clearing House Association – the body that controls and regulates the entire ACH network. In April, 2015, NACHA announced that the overall transaction volume for 2014 increased by 5 percent compared with that of 2013. Given the fact that faster, same-day ACH settlement is just around the corner, the transaction volume that goes through the ACH network will surely preserve, possibly accelerate its upward trend.

Many customers prefer to pay via electronic checks.  The payment method is familiar and card information is not required. Data breaches are so common today that some customers are reluctant to purchase online with cards.

In addition, there are many instances when buyers simply prefer to pay with an echeck.  Or must use an echeck if they do not have a card or are maxed out on the card.  Under these circumstances, the availability of echeck payments on the your website becomes not only desirable, but necessary for the transaction to take place.

Americans are comfortable paying with echecks online.  Most US households already pay monthly bills the internet Echecks are a trusted method to pay for goods & services online. 

Conclusion

Offering echecks as an alternative payment option for your customers is a fast and easy way to get more sales.  And reduce your risks of chargebacks.  

Rates for echecks are generally substantially lower than for card processing. Accounts are easier to get approved. And chargeback periods are substantially reduced.    

Safe, affordable, and easily accessible, echeck payments are a must for any merchant that wishes to be competitive in today’s market.  Electronic checks are regularly used by millions of Americans to purchase goods and services. 

E check payments are convenient for customers.  And profitable for you.

Looking for an electronic check processor?  

Contact info@nationalach.com today

eChecks Increase Travel Merchant Profits

Accept Echecks to Get More Orders 

The more payment options travel merchants offer customers, the more sales will be made.

When you accept checks online, sales increase up to 30%.  You capture sales from customers who do not have cards, are maxed out on cards, or who simply prefer to pay you with an electronic check.

Echecks are the most popular alternative payment for US buyers.  If you don’t offer echecks, you are losing sales to your competitors who do.  

eChecks Benefits Compared to Cards

These days most travel reservations are made online. Yet, card processing is expensive and risky.  And travel merchant accounts are difficult to obtain and maintain.  

Travel businesses are considered high risk merchants for card processors due to the risk of chargebacks.  Travelers can chargeback a transaction for up to 180 days after the purchase is made.  

A chargeback can occur for actual fraud or for what is known as “friendly fraud”.  Friendly fraud is a greater risk for travel merchant credit card processing than actual fraud.

With friendly fraud, a legitimate transaction is disputed by the customer based on spurious reasons. Usually, the main reason behind the dishonest behavior is the intention of obtaining a refund for payments that cannot be refunded on request, such as a hotel reservation for which the customer never showed up. 

How E Checks Reduce Chargeback Risks

Echecks give you proven payment method to substantially decrease your risk for credit card chargebacks.  The more transactions you can process with electonic checks instead of cards, the fewer chargebacks will impact your card processing account.  

The chargeback period for echecks is 40-60 days (depending upon the method of processing the echeck).  Card transactions can be charged back for up to 180 days.  Therefore, your risk for contingent liabilities are significantly shorter with electronic check processing.  

And it is much more difficult for travelers to chargeback an electronic check transaction.  Travelers must contact their bank to dispute the transaction. Documents must be presented to prove the case.  Some banks require travelers to sign an affidavit.  

It takes a great deal of time and effort to dispute an electronic check transaction.  Far more than it takes to dispute a card payment where the traveler simply needs to call their issuing bank.  

Growth in Travel Industry

Whether it is a matter of entertainment, self-discovery, exploration, or relaxation, people love to travel.  In addition to leisure travel, many customers travel for business.  Travel is among the fastest growing industries in the world.

 The US Travel Association points out that the traveling industry is one of the biggest employers and the largest exporter of services.  In 2014 alone, the travel sector produced an economic output of $2.1 trillion, and its volume is expected to rise by 4.3 percent annually until 2020.

Travel  trends of 2015 show increasing use of mobile technology and social media. Other emerging trends will make long-haul traveling more tempting, and will improve customers’ experience through faster boarding and more comfortable plane seats.  

Conclusion

The key for any industry to achieve maximum profits is to meet customer demands.  American travelers expect to be offered different payment methods when booking online.  If you offer only cards, you are leaving money on the table. 

Electronic checks are a familiar and trusted alternative payment method. Millions of American travelers regularly pay for goods & services with echecks.

Accept checks online.  Accept check by phone, mail, and fax orders.   

Echecks are convenient for your customers.  And profitable for you.

Interested in finding out more about increasing your sales with echecks?

Contact info@nationalach.com today.       

Echeck eCigarette Merchant Accounts

Accept Checks Online & Get More Sales

Ecigarette merchants add echecks as a payment option to get more orders from buyers that don’t have cards, are maxed out on cards, or simply prefer to pay you  with with an electronic check.

It’s simple.  The more payment options you offer, the more sales you will get.   Merchants report sales lifts of up to 20% when echecks are added on the checkout page.

How Echecks are Processed

Echecks electronically debit payments from your customers’ bank accounts and credit the funds to your business bank account.

Echecks are processed either through the ACH network or via Check 21 technology that process the transactions through bank-to-bank file transfers.  The decision on which technology is best for you is based on the requirements of your business.

The user experience for both processing options is the same.  Buyers provide their bank routing and account numbers.  Transactions are cleared by the processor and cleared funds are deposited into your business bank account.

 Ecigarettes Surging Popularity

The popularity of e-cigarettes has surged since the the ban on smoking tobacco in public places has become the norm.   The notion that e-cigarettes are healthier than tobacco cigarettes and that they can assist in quitting smoking altogether has also contributed to the increased use of e-cigarettes.

E-cigarettes are loosely regulated and their benefits are frequently questioned by some medical professionals or regulatory bodies. In spite of these issues, there is a growing group of e-cigarette users who wish nothing else but to pursue their habit undisturbed.

Unfortunately, the e-cigarettes industry is undoubtedly headed toward more regulation, possibly similar to that applied to tobacco products.   Merchants, of course,  think increased regulation is unacceptable, as their products are clearly different from those based on tobacco.

The state of Indiana has already passed a piece of legislation demanding to get a license from the Indiana Alcohol and Tobacco Commission.

And, of course, it has become illegal to sell e-cigarette products to minors to curb the increasing number of teens that smoke e-cigarettes.

 eCigarette Payment Processing

The difficulty of enforcing the wildly diverse regulation and the conflation of e-cigarettes with tobacco products is has created challenges for online sellers.

Many merchant account companies classify e-cigarettes along with tobacco products.  In addition, there is the concern that minors who are not allowed to buy the product in the store will go online to buy.

As a result, online e-cigarette merchants who rely on electronic payments are hardest hit by the current attitude of regulatory bodies with respect to e-cigarettes.

Even though the evidence for the benefits of e-cigarettes over regular tobacco cigarettes is still mostly anecdotal, it is undeniable that the demand for these products has nowhere else to go but up.

Many payment processors are reluctant to accept e-cigarette sales and consider them high-risk merchant accounts. Companies classified as high risk merchants have to deal with inflexible policies that make online payments both difficult to get and expensive.

Conclusion

For customers that do not have cards or are unwilling to use cards for online transactions, alternative payments such as echecks give you another way to capture sales.    

Echecks are the most popular alternative payment method for US buyers.  Customers appreciate the convenience of having more than one way to pay for a purchase.  Millions of American shoppers regularly pay for goods & services with electronic checks.

Approval for an echeck account is much easier to obtain than for high risk credit card merchant accounts. Underwriting is more flexible since there are no card brands involved.

Are you an ecig merchant that wants to accept checks online?

Contact info@nationalach.com

MLM Merchant Account

E Checks Boost Profits 

Echeck MLM merchant accounts are one of the best ways to increase sales and profits.  The more ways distributors and customers can pay you, the more sales you make.

Electronic check processing gives you the ability to electronically debit funds from buyers’ bank accounts.  Funds are automatically deposited to your business bank account.

Echecks are the most popular alternative payment method for US buyers. Millions of Americans regularly pay for goods and services with electronic checks.

Benefits of E Check Processing to MLM Merchants

• Get orders from buyers that don’t have cards or are maxed out on cards.
• Obtain sales from buyers that prefer to pay through a bank account rather than using a card.
• Accept checks online.  More than 30% of internet sites offer electronic checks as a payment option.  
• Accept check by phone, mail, and fax orders.  Multi-channel payments boost profits.
• Stabilize cash flow from recurring billing.  Bank accounts rarely change, ensuring recurring payments are received without interruption.  
• Echeck MLM merchant accounts are easier to establish than card processing
• Pay US distributors quickly with direct deposit to bank accounts 
• Pay distibutors world-wide with international debit cards

MLM High Risk Merchants for Card Processing

Direct selling based on a multi-level marketing strategy has been around for many decades, but since the advent of social media, this business model has become increasingly widespread and profitable.

In fact, according to the Direct Selling Association, the sales for year 2014 increased by 5.5 percent compared with the previous year, the total amounting to an astounding $34.47 billion.

The most lucrative industries are those that sell wellness, personal, and family care products, with clothing and accessories not so far behind. The steady and quite dramatic increase in sales, particularly between 2012 and 2014, have turned the United States, according to the most recent statistics, into the largest global direct selling market.

Under these circumstance, it is no wonder that a growing number of direct selling companies are seeking to make their products even more accessible via online payments. This might be tricky because the industry as a whole is considered high risk by cards associations and many payment processors do not accept companies that use multi-level marketing as a compensation method for their sales representatives.

The reasons behind this reluctance are diverse. The business model is conflated with pyramid-schemes, as recruiting ostensibly becomes the top priority, while selling the product become secondary. 

Additionally, products that are sold via multi-level marketing arrangement vary.  For example those that provide products categorized as “nutraceuticals”, have to overcome extra hurdles in obtaining card processing services.

Conclusion

Echecks are the most popular alternative payment method for US consumers. Whether you accept checks line or checks by phone, mail or fax, electronic checks get you more orders.

Establishing an echeck account is much easier than a high risk credit card account. And, electronic check processors allow higher chargebacks and returns than do card processors.

Don’t risk losing sales simply because you don’t accept echecks.

It’s simple. The more ways your distributors & customers can purchase from you, the more sales you make.

Are you an MLM merchant that wants to increase sales and profits with echecks?

Contact info@nationalach.com today.