How Adult Merchants Increase Sales with ACH Payments

How Adult Merchants Increase Sales with ACH Payments

Adult Merchants Offer Discreet & Secure Payment Methods

Content is king online.  Adult merchants constantly update content and reach out to audiences across the globe. Many adult merchants have a significant following of loyal customers.  

However, the risque content offered by adult merchants, combined with the need to control access to the the content by minors, can create hurdles when it comes to obtaining payment processing accounts.     

Challenges of Credit Card Processing for Adult Merchants

Adult content, dating services and adult toy stores all offer goods intended for people over the legal age. Age restrictions are difficult to enforce online. In countries like the United Kingdom and Germany, there are severe restrictions on the credit cards used for these services, to ensure only adults can access the services.

Although these services are federally legal in the US, adult merchants have trouble gaining access to traditional merchant accounts. Banks and payment providers class these businesses as ‘high risk’ and refuse to offer credit card payment services. They claim that online adult services face a greater risk of customer disputes and fraud. American Express, for example, doesn’t allow cardholders to pay for online pornography.

Card payments in the United States are considered to be the least secure method of payment.  Additionally, many adult merchants have recurring payments & subscription billing models that can be impacted when cards are the payment method 

One in five credit cards are reissued every year in the country.  Updating card information when cards are reissued is labor intensive.  And each time a recurring billing customer is contacted for obtain updated card information, you give the customer an unnecessary opportunity to cancel the the service.  

The combination of more cancellations and the inability to obtain updated card information negatively impacts your cash flow from recurring payments.  

Reasons ACH Payments are a Better Solution

Adult merchants discover that payment by ach provides a highly effective alternative to card payments.  Online payment by ACH is a secure option that protects businesses as well as clients.

The ACH network is widely considered to be the most efficient and safest payment system in the world. The network currently handles $41 trillion annually and more than 90% of all electronic transactions in the US are made with payments by ACH.  

With ACH, payments are electronically debited from customers’ bank accounts. Funds are then deposited to your business bank account.  Millions of Americans regularly pay for goods & services with ACH payments.  

ACH is particularly effective for recurring payments & subscription payments. Consumers rarely change bank accounts, whereas cards are frequently changed or reissued.  Once an ACH payment is set up for recurring billing, payments continue steadily, providing a stable source of recurring revenue.  With no need to contact customers & risk unnecessary cancellations.

There is rarely a need to update ACH payment info.  Therefore, cash flow from recurring payments continues uninterupted. With fewer cancellations occurring since customers do not have to be contacted to obtain updated card data. 

A high risk business model can be mitigated by processing higher volumes through a secure online payment gateway with extra protection. Still, you must keep returns & chargebacks below a certain threshold to be able to offer payment by ACH. This reduces the risk for everyone involved on the platform.

Conclusion

The more payment options you offer at checkout, the more sales you make. ACH payments are a familiar & trusted payment option for US buyers.  

ACH payments offer significant benefits over cards for recurring & subscription billing models.  Stabilizing cash flow while reducing unnecessary customer cancellation of services.  

How are you handling payments for your online adult business?  

Contact us today to establish your adult merchant account.

 

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 E Check 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

Check by Phone Payments Improve Cash Flow

Echecks Boost Recurring Payments

Good news for companies that offer check by phone as a payment option. NACHA the governing body for ACH payments, finally updated the rules regarding telephone transactions.

Under the old rules for check by phone, only one time ACH debits could be authorized by telephone.  But, now you can accept verbal authorization from customers who wish to take advantage of recurring payments.

The change is certainly a welcome one for all companies that take payments over the phone.  Recurring payments are one of the easiest ways to improve cash flow and increase revenues.

Automated recurring payments save companies money.  Cash flows in on a timely basis without any manual intervention, increasing productivity and decreasing expenses.

Recurring Payments Stabilize Revenue Streams

Recurring payments enable businesses to electronically debit customers’ bank accounts on a regular basis.  Perfect for subscriptions and memberships, recurring payments stabilize revenue streams and create a predictable income stream for merchants. Recurring payments increase the life cycle retention of customers. 

Once set up, customers continue to pay month-after-month.  Customers rarely change bank accounts making direct debits an excellent long-term revenue generator for businesses.

Moreover, recurring payments allow merchants to set up easy-payment schedules for customers.  The convenient payment option lets customers to pay for product and services over time, rather than on a one-time basis.

Guidelines for Recurring Check by Phone Payments

 The following information needs to be provided for check by phone transactions:

  • Amount of the recurring payments, or a reference to the method of determining the amount of recurring payments
  • Timing (including the start date), number, and/or frequency of the ACH debits
  • Customer’s name
  • Routing and account number of the account to be debited for the recurring payments
  • Phone number for customer inquiries that is answered during normal business hours
  • Date of the customer’s oral authorization for recurring payment ACH debits.

Conclusion

Electronic checks are the most popular alternative payment method for US consumers. Check by phone payments give your customers a trusted and familiar way to pay you.

Echecks trump cards for recurring billing. Consumers rarely change bank accounts and payment information seldom needs to be changed. 

As a result, recurring payments continue to flow in uninterrupted. And your cash flow is protected.

Interested in a check by phone echeck account?

Contact info@nationalach.com today

 

Who Can You Trust?

Internal Data Breaches are Your Biggest Threat

To protect your payment processing and your business, be careful who you trust.

Certainly businesses are fearful of attacks from the outside from cybercriminals.  But, in reality, many frauds are perpetrated by people working inside of the business.

Employees Can Exploit Your Processing System

Temptation looms large when employees discover an easy way to exploit the system. 

The vast majority of people are inherently honest.  However, even the most morally righteous person can yield when faced by personal financial difficulties, dissatisfaction with the employer, or the thrill and excitement that can come from “getting away with it”.

Keep a good eye on the type of information that is available to your employees.  Be sure to have audit trails for every transaction.  Strong management oversight from different departments is also valuable.  Of course, be sure someone is watching the managers too.

The most obvious people that have access to customer information are the customer service representatives.  Yet, many other employees also are in situations where information theft easy.

Receptionists, mail room workers, administrative assistants, and purchasing agents, and security officers have availability to data. In fact, anyone you employ can potentially be a thief.

Within your business, protect your customers’ information. And, don’t forget to protect the financial information of your company which is equally valuable to fraudsters.

For information on secure payment processing, contact info@nationalach.com today

Payment Growth Fueled by Debit Cards

Research on payment processing was recently released from Goldman Sachs. The investment bank expects growth from sources other than credit cards to power growth of electronic payments to 42.3% of worldwide personal consumption expenditures in 2012, up from 35% this year.

Growth in credit card processing will be slow due to the economy. Goldman predicts that U.S. credit card volume will fall to $1.225 trillion this year, down 11% from 2008’s $1.372 trillion. A further decline, to $1.211 trillion, is forecast for next year.

Debit card transactions will rise. In the U.S. debit volume will be $1.187 trillion this year and will exceed credit card volume in 2010, at $1.284 trillion, including signature and PIN debit payment processing transactions.

E-commerce volume globally will grown from $736 billion this year to about $1 trillion in 2012, the firm forecasts. Volume on prepaid cards will grow from $279 billion to $335 billion. And mobile payments will see volume climb rapidly, from $26 billion to $135 billion.

Are you interested in a secure payment processing account?

Contact info@nationalach.com today

Payment Processing Challenges

Carla Balakgie, CEO of the Electronic Transactions Association says that the current economic condition and malicious fraudsters with criminal intent are among the biggest problems facing the payment processing industry.

According to Balakgie, the downturn in the economy is the biggest problem facing payment processors. Credit is tight. Consumer spending is down. And merchants are faced with a slow-down in retail sales. The situation is not likely to change anytime soon. Consumers are less able to take on additional debt and lenders are continuing to make credit difficult to obtain.

Merchants are keeping a close eye on payment processing costs. Sales organizations selling payment processing have to offer benefits other than low rates. Offering alternative payment processing options is one good way to add value to current merchants and to acquire new ones.

Another important consideration is protecting merchants from fraud. Online fraudsters have become increasingly sophisticated and target any weak links in the payment processing electronic transaction flow. It is crucial to have a ongoing payment processing strategy in place to block fraudulent transactions and handle any security breaches quickly and effectively.

Interested in a secure payment processing account for your business?

Contact info@nationalach.com today