How Electronic Checks Increase Nutraceuticals Sales

Are you a selling neutracetucals and vitamins?  Boost orders by accepting electronic checks from your customers.  Call 214-269-9361.  

Nutraceuticals in Great Demand

As the health consciousness of consumers has increased, focus has shifted from treating illnesses to preventing them.  Leading to a huge demand for  a wide variety of nutritional supplements and vitamins.

These products are classified  the generic term nutraceuticals to differentiate them from pharmaceuticals.   Nutraceuticals are designed to improve the physical well-being and cognitive performance of individuals.  A goal which different from  prescription medications which are developed to address specific medical conditions.

The nutraceutical market is astounding not only in terms of size, but also with respect to its prospects for growth. Recent market research suggests that by the end of the decade, its global value will reach to $241.1 billion.

Banks Classify Nutracetucals as High Risk Merchants

The increasing demand for nutraceuticals, vitamins and supplements has created an unprecedented business opportunity. And payment processing is crucial in order for your customers to buy from you.

In recent years, there has been a constant push for regulations to deal with situations in which a vitamin supplement or nutraceuticals seller makes claims about curing specific diseases. More precisely, given the disparate regulation applied for nutraceuticals across the world and within the United States, the risk that the products will be sold to the wrong customer persists. 

 It is precisely this accessibility and increasing consumer demand for alternatives to traditional healthcare that sometimes works to the disadvantage of merchants that sell their products online. Obtaining payment processing accounts is challenging for nutraceutical merchants.  The reason is the industry is classified as high risk merchant accounts by the banks.  

Chargeback Risk for Payment Processing

Selling nutraceuticals online is not always easy because these products are considered high risk in the payment industry. The chargeback rate can be statistically higher than average for nutraceuticals, vitamin and supplement merchants.  

Some customers claim that the product did not work for them as advertised or their expectations were not met. In spite of the fact that many such situations can be solved by asking you for a refund, some customers instead dispute the charge with their card issuing bank.  

This perception of increased chargeback risk is somewhat is erroneous.  It is quite possible to keep chargebacks in check by making sure that all the characteristics of the products are made clear, while being ready to address any customer concerns as soon as they arise.

Of course, most businesses sell perfectly legitimate nutraceutical products, without making exaggerated or non-compliant claims.  Yet, legitimate sellers are still classified as high risk.   

How Echecks Boost Your Profits

Card processing accounts for high risk merchants is important. Yet, the more payment options you offer at checkout, the more sales you make.  

 Echecks are the most popular alternative payment option for US buyers.   With echecks, you get sales from customers that don’t have cards, are maxed out on cards, or simply prefer to pay you with a direct debit from a bank account rather than using a card.

Establishing an account for you to accept electronic checks from your customers is easier than getting a card merchant account because there are no arbitrary card brand rules involved.   Processing rates are much lower for echeck payments than for card processing.

And you’ll have much greater flexibilty regarding chargebacks with an echeck account than with a card account.  This is because the customer has a shorter period in which to initiate a chargeback and the process itself involves several steps they need to follow.  The process is not meant to hinder customers that have a legitimate concern, but to eliminate frivolous claims, something which merchants that sell nutraceuticals will surely appreciate. 

NationalACH is committed to offering affordable and reliable payment services to merchants that sell nutraceuticals who want to increase profits and expand their customer base.

More than 30% if US etailers already offer electronic checks as a payment option at checkout.  Don’t risk losing a sale simply because your competitors accept echecks and you don’t.  

Want to find out more about increasing sales by giving your customers another way to pay you?  

Contact info@nationalach.com today.

Echecks Increase Profits for High Risk Merchants

More Sales with Less Risk

The more payment options you offer customers, the more sales you make.  According to Mercator alternative payments are used for 35% of online purchases.

The most popular alternative payment method for US shoppers is echecks.  The majority of US households already use electronic checks to pay household bills online and are comfortable with the using echecks for payments when purchasing online.

Echecks are particularly important for high risk merchants. Accepting checks online helps cut down on chargeback and consumer disputes.  It’s more difficult to chargeback an echeck transaction than a card payment.

Echecks also save money on payment processing fees.  Rates for echecks are significantly lower than those for card transactions.

High Risk ACH and E Check Processing

Merchants that want to offer echecks as a payment option can open a high risk ACH processing account.  Alternatively, echecks can be processed via Check21.  The decision on which to use depends on the nature of your business.

High risk ACH processors use the Automated Clearing House to process echecks.  ACH is a good solution for high risk merchants who can keep revoked transactions (chargebacks) under 0.5%.  Since the ACH system is a batch system rather than real time, cleared funds settle to the merchant’s bank in 3-4 days.

Echecks are a great alternative to high risk ACH.  Echeck payments transactions are processed by bank-to-bank transfers.  Tranasactions clear within one to two business days.  

Echecks give you more far more flexibility for chargebacks and returns than high risk ACH processing.  And much more than card transactions.  .

Setting up Your High Risk eCheck Account

Applying for an account is easy.  You submit an application along with supporting documents including driver’s license, previous processing history (if available), bank statements, and a voided check from the depository account.

Account approval takes 5 business days.  Once approved, you can process transactions online or take checks by phone, fax or mail.  Integration to your website is simple using an API. You can also submit transactions through a virtual terminal or upload batch files.

Merchants in all high risk classifications are welcome to apply for an echeck account.  Including but not limited to: online dating; subscription sales; call centers; timeshare; informercials; software; technical support; travel; collectables; coin and precious metal dealers; money service businesses including check cashers, payday, installment, and auto title lenders; adult entertainment; nutraceuticals; recurring billing; digital products; credit repair; loan modification; ticket brokers; ID theft protection; fantasy sports; ecigarettes; and more.

Conclusion

Adding electronic checks on your checkout page is one of the fastest ways to increase sales. Millions of Americans regularly pay for goods and services with electronic checks.

Accept checks online. Accept check by phone, mail & fax orders. The more ways shoppers can pay you, the more sales you make.

Are you a high risk merchant interested in electronic check processing?  

Contact info@NationalACH today.

Echecks Trump ACH for Lenders

Electronic Check Processor for Subprime Lenders

Lenders, collection agencies, and other businesses working with a sub-prime customer demographic find it difficult, if not impossible, to maintain the revokes and returns thresholds required by the rules of the ACH network. Echecks offer you an effective alternative to ACH processing.

Difference between Echecks and ACH 

Electronic check processors use bank-to-bank image transfers rather than the ACH network to process the transactions.  

From a functional standpoint, echecks and ACH processing operate in the same way.  That is, customers provide routing and account information, along with the necessary authorization to debit their bank account.  The collected funds are deposited into your bank account

The most important difference between echecks and ACH is the governing regulations.  ACH transactions are governed by NACHA which require that revoked transactions (also known as “chargebacks” or “consumer unauthorized”) be kept at levels under 0.5% and returns under 15%.

Echecks are governed by check laws and the Uniform Commercial Code.  As a result, there is far more flexibility in the number of revoked and returned transactions with echecks than with ACH processing.

Advantages / Disadvantages of Echecks

If your revoked transaction rate is over 0.5%, you cannot maintain an ACH account.  Thus, the main advantage of echecks is that it gives you way to process electronic checks with fewer concerns about revoked transactions.

This does not mean that you can have unlimited numbers of revoked transactions.  Any bank that sees exceeding high rates of revokes will seriously question the viability of the business debiting consumer accounts.

While there is not a specific percentage threshold, a reasonable number of revokes is acceptable.

Echeck processing usually has rates that are higher than ACH processing.  Accounts for echecks have discount rates in addition to a per transaction fee. Echecks are often used by high risk merchants,, where fees are traditionally higher than standard risk accounts..

There is more manual labor involved for the banks and processors for echecks than with ACH,  particularly in the processing of returns. This burden rests with the processors and banks and will not affect your operations nor affect your rates.

Conclusion

Electronic check processing increases profits.  

ACH processing is a good solution for companies that can keep chargebacks and returns low. Echecks are solution of choice for high risk merchants that need more flexibility for returns and chargebacks.

E checks are convenient for customers.  And profitable for you.  

Are you interested in an echeck account to increase your profits?

Contact info@NationalACH today.

High Risk Processing with No Chargebacks

Bank transfers are an alternative payment that provides guaranteed funds to high risk merchants, without any risk of chargebacks.

Merchants are classified as high risk merchants for card processing because of a greater than normal likelihood of chargebacks.   Merchants in high risk categories find bank transfers are a powerful way to limit exposure to chargebacks while giving customers an easy, convenient, and popular way to make purchases online.

Customers are increasingly comfortable using bank transfers as a payment option.  This is due in large part to the dramatic increase in online bill pay and online banking services.

Bank transfers are considered “push payments” because customers push payments to merchants through their online bank systems.  Bank transfers are a popular means of payments throughout Europe, Brazil and other parts of the world.

How Bank Transfers Work

At checkout, customers click on the bank transfers button.  The list of banks displayed.  The customer clicks on the appropriate bank and is automatically redirected to the online banking site.

The customer logs in, completes the transaction and is automatically redirected back to the merchant’s website.  The merchant receives confirmation that the payment has been received and can fulfill the order.  The customer receives a receipt for the purchase.

Now, ecommerce merchants have a way to take advantage of the customer trend to pay with bank transfers online.

Bank Transfers Eliminate Fraud

Consumers  and  businesses  today  are  concerned  about  the  growing  potential  for  fraud  when making purchases online.  A surprising number of consumers have had the misfortune of having security breached due to no fault of their own.

Bank transfers eliminate the potential for fraudulent transactions for both consumers and merchants.  Since payments are pushed to the merchant, the merchant never has access to any personal information on the consumer.  And consumers are protected by their online banks security when making a payment online.

All of this is done seamlessly through your website.  The payment option is as simple to use as a card or echeck.  Yet it is more secure.

Fraudulent transactions are nonexistent, eliminating chargeback concerns.  Funds are settled quickly.

Best High Risk Merchants for Bank Transfers

The best candidates to add bank transfers as a payment option are merchants with targeted international customers that are selling high ticket items.

One of the hottest industries for bank transfers is for airlines and the travel industry.  Bank transfers enable airline and travel merchants to accept payments from international customers that are similar to safe as a cash transaction.

Online entertainment, software downloads, direct sales organizations, prepaid cards, and money remitters are also excellent candidates for bank transfers.

For more information on how your business can benefit contact info@nationalach.com 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 info@nationalach.com