Echecks for Loan Modificiation

Echecks for Loan Modificiation

Modifying loans is a much-needed service. If your business offers this complex service you already know there is no lack of demand.

However, a lack of investment in compliance and technology has had an impact on services. Borrowers are facing increasing challenges to get their loans modified appropriately.

But the Home Affordability Modification Program (HAMP) has managed to streamline the process and boosted the number of borrowers who can qualify for loan and mortgage modification.

Service providers have increased alongside the shift in demand. But more than two years ago, the Consumer Financial Protection Bureau published a set of rules and regulations for firms in the industry.  In a recent report, the CFPB found that American borrowers were still being harmed because many loan modification companies failed to invest in better compliance and technology.

In such a crowded market, improving service quality and technology has the potential to make your business stand apart. Here are three ways you could make your loan modification business succeed.

Automate To Reduce Errors

One of the key findings of the CFPB report was that loan modifiers were not able to manage data appropriately. All the information about modification options and client details were lost because the technology was outdated and the staff lacked training.

This is a relatively easy problem to solve. Automated payment networks like Automated Clearing House (ACH) can drastically reduce the number of errors at the point of sale. An ACH or echeck account allows your business to automated the process and take the human out of the equation.

The reduced chances of errors and reliability of electronic check processing helps boost customer confidence.  Clients  feel secure with an efficient electronic payment system that ensures all data is collected & managed properly.

Invest in Compliance

With proper staff training and data collected from an an echeck or ACH merchant account, complying with regulations is a lot easier. CFPB servicing rules require a thorough process that helps the borrower stay up to date with payments. With an ACH account your business has access to a well-developed, and nationally recognized platform. The platform makes it easier to offer loan modification services and take recurring payments throughout the year to service the loan. This should help your business stay on par with the standards set by the CFPB.

Protect Your Clients

Protecting client data securing the payment is of the utmost importance. An ACH account grants access to a platform  that can allow your to process echecks which electronically debit funds from clients’ bank accounts. Echecks are a better, more secure option as compared to traditional checks and even credit cards. A direct debit to your business’ ach account is much more stable, considering people don’t change bank accounts as frequently as credit cards.

The payments can be made through multiple channels and the system is designed for recurring billing models like loan modification. This ACH account can help you prevent chargebacks and reduce the level of fraud as well. You can accept payments online through an API or allow clients to pay over the phone and through the mail by means of a virtual terminal.

Each year, $39 trillion and 22 billion electronic financial transactions move through this highly secure system. The system is so widespread, businesses across the country sign up simply to offer convenience and security to their clients.


Getting a loan modification merchant account will help you secure your clients, comply with the rules and reduce errors. These three simple steps can vastly improve your service quality.

Interested in accepting echecks from your customers?   

Contact us to learn more about this payment network.

High Risk ACH Processing Compared Echecks

High Risk Merchants Prefer E Checks

In the US, there are two methods of debiting a bank account.  First is ACH debits, which process transactions through the Automated Clearing House network.  The second is echecks, which processes payments via bank-to-bank transfers.

Many merchants who were using high risk ACH processing are moving away from ACH payments and are using echecks instead.  The reason for the change is that NACHA is changing the rules regarding the number of returned transactions that are permitted to flow through the ACH network.

Beginning in September 2015, the threshold for unauthorized returns (also known as revokes or chargebacks) is being lowered to 0.5% from the current from 1%.  Returns for administrative or account-data errors must be no greater than 3%,   In addition overall returns for any reason must not exceed 15%. 

If return rates go over the levels, ODFIs risk investigation or enforcement proceedings.  The proceedings includes an 8 step process that examines every part of the banks’ ACH processing. 

Let’s get real.  How many ODFIs do you think are going to be willing to risk an examination?   In reality, most banks will get rid of high risk ACH processing merchants rather than take any chances.

Echecks Different than High Risk ACH Processing

The user experience with both ACH processing and echecks is the same. The customer provides bank routing and account number information and authorizes the transaction.

The difference is on the back end processing. 

With ACH, transactions clear through the ACH network.  Therefore, the transactions are subject to NACHA rules. 

Echecks are cleared through bank-to-bank data exchange.    These transactions are governed by the UCC and long-standing laws regarding checks.

As a result, echeck transactions do not need to adhere to the tight and rigid rules governing ACH payment processing.  There is substantially more leeway for returned and revoked transactions.

How High Risk Merchants Set Up E Check Processing

The application for electronic check processing is very simple.  You submit an application along with supporting documents.   Allow 5-7 business days for the account to be activated.  Then you’re good to go.

You can integrate echeck processing with your websites via an API to accept checks online.  You can accept check by phone, mail and fax orders using a virtual terminal.  And you also have the option of uploading batch transactions through a secure FTP site.

Are you a high risk merchant that wants to increase profits with echecks?

Contact 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.


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?


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 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

High Risk eCheck Processing

Get More Orders with Electronic Check Processing

High risk merchants discover adding electronic checks as a payment option at checkout increase sales up to 29%.  And saves 50% or more in payment processing costs compared to high risk credit card merchant accounts.

Boost Sales

Electronic checks give customers another way to buy from you.  The more ways customers have to pay you, the more sales you will make.  That’s simply common sense.

More than 30% of Americans do not have credit cards. Yet more than 90% of US households have bank accounts and can make purchases with electronic checks.

Card Transaction Denied?  Rescue the Sale with Electronic Check

If a card sale is denied, offer the buyer the opportunity to pay with electronic checks instead.  You capture sales that otherwise would be lost.

Reduced Risk for High Risk Merchants

Credit card transactions represent greater risk of future liabilities to high risk merchant than do electronic check transactions. 

Customers can chargeback a credit card transaction for up 180 days after a purchase is made.  But, with electronic checks, a customer has only 60 days to revoke a transaction.

And, it’s harder to revoke an electronic check transaction than it is for a credit card transaction.  For card transactions, customers simply call their card issuing bank to chargeback a transaction.  And the issuing bank almost always takes the side of the consumer against the merchant. 

But, to revoke a check transaction, a customer often has visit the bank, provide documentation and to swear out an affidavit to revoke a transaction.  Far more difficult and time consuming than a credit card chargeback.


Shoppers have many places to buy goods and services.  And high risk merchants represent some of the most competitive industries online.

Alternative payment methods such as electronic checks are among the fastest growing sources of increased revenues for internet merchants. 

Don’t risk losing a sale to your competition just because they have a payment option that you don’t.  However your customers want to pay you, make it easy by accepting their preferred method of payment.

Are you a high risk merchant that wants to accept checks online to get more sales?

Contact today