High Risk eCheck Processing & ACH Processing
The eCheck processing industry has substantially grown over the past few years. This is due in part to the tightening of acceptable industries for credit card processing in addition to the fact that eCheck is a much better choice for high risk merchants.
For most businesses, the search for a high risk payment processor is decline after decline. Global Pay LTD hopes to change this. While credit card processing is a large part of Global Pay’s business, eCheck processing is consistently growing at double digit rates. High risk merchants find eCheck processing much easier to work with when compared to card processing.
Solutions for High Risk Processing
If you want to process electronic checks, eCheck is one of the options that you should look at. With the help of eCheck, you can smooth the path of funding. Another advantage is that it does not have as many restrictions as ACH. As a matter of fact, it is quickly turning out to be the answer that many merchants use to accept a check-based payment and the flexibility that it offers (referred to as Remote Deposit Capture) is perfect for several sales setups.
How to Get Paid Faster?
Payments made via paper check have decreased. This is what the Federal Reserve Payments Study that was completed in 2017 has found. According to this research not only has the number of paper check payments been lower, but the value of the transactions has also decreased. This same study has also found that while there was a decrease with regards to paper check payments, the reverse was true for eCheck payments.
So, similarly to how consumers are relying less on cash, paper checks are also no longer the preferred payment method. Fortunately, the use of electronic checks has become common practice, especially for high risk business and provides a payment method that both companies and customers are happy with.
An electronic check works similarly to a paper check. Without any actual piece of paper being given to the other party, money can get transferred. As this method does not rely on paper, paying via an electronic check can be faster and less expensive. What makes it better than paying by credit card is that with an electronic check (or simply referred to as an eCheck) there is no extra fee and the company does not have to be concerned about a chargeback that can be quite expensive.
What is more, when eCheck (an electronic check processing service that is provided by Global Pay LTD) is used, a merchant will be able to see the money made from a check sale right away. If you want to use this innovative service, all you have to do is to complete their straightforward application online. Apart from offering high risk merchant accounts, the team at Global Pay can also provide a customized payment solution that is ideal for both well-known and brand new merchants.
As their team knows that services related to merchant accounts can be complex and at times too much to make sense of, they try to make it as clear as possible by using current tools and sharing info regarding payment options that is up to date. It only takes one to two days for your application to be approved and if it gets the green light, their team can help you with fraud filters as well as a payment gateway.
What Is Better – Credit Card Payments or ACH/eChecks?
If you are providing services or merchandise that are regarded as high risk, chances are good that you are wondering if you should opt for a credit card processing or ACH/eCheck processing service. Perhaps you want to know if it will be best to get both these services? You have most likely also found out that it can be rather hard to get the OK to accept credit card payments. There are several things that a high risk credit card processor usually asks for, such as; expensive fees to be paid beforehand, more costly monthly fees and processing statements that date way back.
Now to make matters more complicated there is the possibility that after you have provided all this info, your application may get declined. The reason being that because of the guidelines used by MasterCard and Visa, countless sectors are not allowed to accept credit cards. Gambling, specific kinds of supplements, trading of cryptocurrencies and marijuana sales are just some of the industries that are not allowed to use credit card processing.
And, if you do get the green light, you will have to guard against not getting a lot of chargebacks. If your chargeback ratio is too high, it could be that your ability to process payments gets put on hold and you will not be allowed to access your money. Needless to say, this can impact your business severely.
When you take this into consideration, you will realize that eChecks might be more suitable than credit cards for your company, particularly if you have a high risk business. Firstly, you can get approval quickly and it is simple to use. Actually, practically any kind of business that sells legal merchandise or services will be approved. This is great news as you will be able to accept eCheck payments virtually right away.
Another big perk is that eChecks are more affordable. A high risk credit card processor usually asks a costly application fee that must be paid in advance (this fee can be as much as $1000 or even more), but your chances of getting approved are not as great. Now eChecks do not have any application fees that must be made ahead of time. Also, their monthly fees for processing are not a lot compared to what a high risk credit card processor will bill you.
So What Are eChecks Exactly?
In short, an electronic check (or simply eCheck) acts as a digital replacement for conventional paper checks. Most of the time it is used for online transactions to pay for a service or product related to eCommerce.
It is easy to use an eCheck. All you have to do is complete a form online with the info pertaining to the account that appears on the paper check. In fact, thanks to advances, it is now even simpler to use eChecks. Now you can use a desktop check scanning tool or a mobile app that can scan and upload a photo of the actual check. After the account and routing details have been sent to an eCheck processor, the money will typically get sent within 24 – 72 hours.
An eCheck is similar to an ACH. With an ACH the customer’s bank will initiate the transaction whereas with an eCheck the merchant gets to initiate it. In addition to being easy to use, thanks to the Internet, eChecks have also become quicker and safer.
How Do Electronic Checks Get Processed?
It is oh-so straightforward and works quite similar to a credit card. You can accept payments via telephone, email, mail or your website. To be able to accept eCheck payments, you will need a computer, access to the Internet and an eCheck account.
With the help of eCheck processing, people can transfer money electronically from their account to any place across the globe. A customer will be asked to key in their bank account and routing details in order to pay via an eCheck or simply click the appropriate button if the transaction is made via a website. Then, this encrypted info gets sent by the payment gateway to the eCheck processor that physically prints and deposits the check directly into the bank account of the merchant.
With the help of fraud-prevention technology, the eCheck processing provider will check the identity of the customer in order to assess if the transaction is risky. Also, all payments must be authorized by the customer via a recorded voice note, signed contract or by accepting the T&Cs of the website. When the transaction has been declined or approved, the merchant will receive a notification and the approved funds will get sent to the bank account of the merchant.
Thanks to the Check Clearing for the 21st Century Act which got the thumbs up in the US more than a decade ago, a remote deposit is legal. This means that an individual does not have to take the actual check to a bank and instead only a digital image of the check must be scanned and then sent to the bank for processing.
Processing an eCheck is not that much different from processing a paper check. Though, you will be very glad to know that it is quicker! With the use of current technology, a customer no longer has to complete a paper check manually and then forward it to the company that they owe money to as this process can be completed electronically. This means that you will save valuable time. Plus, it is kinder towards the environment as it reduces really a lot of paper waste.
Listed below are the four main steps when you want to process an eCheck.
1. Get authorization
The company must get the necessary authorization from its client/customer in order to be able to complete the transaction. Authorization can be gotten through an online payment form that has been signed by the client/customer, a signed order form or alternatively a telephone conversation which has been recorded.
2. Set up the payment
Once authorization has been completed, the company enters the payment info into the online payment processing software. In the event of recurring payments, the info must also list the particulars of the recurring schedules.
3. Confirm and send
When all the payment info has been keyed in to the software accurately, the company must simply click on “Submit” or “Save” so that the transaction process can begin.
4. Confirmation of payment and depositing the money
This payment will then be withdrawn from the bank account of the client/customer automatically. The online software will forward a receipt of payment to the client/customer and the actual amount will get deposited straight into the bank account of the company. After the transaction has started, it usually takes about three to five business days for the amount to be deposited into the bank account of the merchant.
Which kinds of payments can be made via an electronic check?
As a matter of fact, it is quite common to welcome an eCheck payment for more expensive things like rent, car installments, mortgages or other expensive monthly expenses like a fitness subscription. Why? Well, to process an eCheck payment is cheaper for a merchant than what it is to process a payment via credit card.
What Are the Advantages of Using eCheck Processing?
In short, eCheck processing requires little effort, provides better availability and minimizes the risk and cost. What is more, remote deposits can be fed to internal systems and allow for document and intelligent character recognition. These features translate to better functionality. Though, one of the most significant perks is that transactions can be completed faster as everything is completed electronically.
As consumers prefer to be offered a wide range of payment methods, businesses have also reported a boost in sales once they have begun to accept eChecks. What is more, consumers also find this kind of payment to be more trustworthy as it poses fewer risks and less fraud thanks to the screening procedures such as verifying the account details and checking the bad check database.
A couple of the other advantages are that a transaction does not need a receipt or check writer authorization. Merchants can rest assured as the funding is guaranteed and a deposit can be completed in less than a day. It is also more affordable as merchants can keep track of the transactions online for free and do not have to pay so much to process eChecks compared to processing a credit card payment.
When compared to ACH (which is the primary network for processing electronic transactions in the US), eCheck processing does not have as many restrictions. ACH might not be charging a setup fee, though it does take a long time for the funds to get transferred – in some cases as long as a week.
Can an eCheck get used for a recurring payment too?
As a matter of fact an eCheck is one of the favorite ways to pay a recurring payment. In fact, there is no difference between a “recurring ACH payment” and a “recurring eCheck payment”. Also, a property manager many times prefer that a tenant completes a recurring eCheck rent payment form which will allow them to deduct the rent automatically from the account of the tenant every month on a specific day.
Does it take long for electronic checks to get cleared and processed?
Well, how long the clearing process takes depends on the providers. Usually the funds get verified within one to two days after the transaction has begun. If the amount is available in the account of the payer, the transaction can get cleared within 72 hours to five business days from where the amount will be transferred from the account of the payer to the payee.
How can you send eCheck payments?
In the event that you want to send electronic payments, the company to which you are transferring the money must have an ACH merchant account. With the help of a merchant account, the company can use the ACH network to receive payments that were made through an electronic funds transfer.
There are two manners in which you can send eCheck payments.
First, you can record a telephone conversation where the payee can request your routing numbers and checking account. The company will then enter these details together with the payment amount into an online payment terminal. When “Process” gets clicked, the amount will get deducted from the account of the payer and deposited into the account of the company or individual to whom the money is owed.
Or, the payee can give you an online payment form. On this form you will have to add your routing number and checking account number together with the amount that must get deducted. When you click on “Submit” the payee will be authorized to take the amount from your account.
Should I Be Concerned About Fraud?
A merchant does not have to be anxious about chargebacks or fraud which is not the case with credit card transactions. Online fund transfers have become a whole lot more savvy thanks to the improvements in data theft and fraud prevention that can be in many cases attributed to better electronic encryption.
When you use a payment gateway to validate payments, the risk of getting a fraudulent check can be decreased. Also, as no actual paper check changes hands, not as many people will be able to see the sensitive info, such as the bank account details, of a customer. So, it is also safer for customers to use.
In the event that there is a bad check, customers can rest assured as they enjoy protection under the Electronic Fund Transfer Act. According to Regulation E of this act, a bank must enable a client to cancel a payment that they view as fraudulent within 60 days of the bank statement with the fraudulent transaction.
Chargebacks are one of the main dangers linked to processing credit card payments. If you accept a payment via credit card for high risk merchandise or services, the chances of getting chargebacks are much higher.
This is a big deal for a couple of reasons. Firstly, in case there is a chargeback you will have to sort it out with the bank that issued the credit card to the customer (and this usually does not go in favor of the merchant). Irrespective of the outcome, a merchant can be charged as much as a hundred dollar for every chargeback. In addition to having to pay penalties, any chargeback will be recorded. So, in short, the result is that you were not paid for a product that you no longer have and a bad record which increases the likelihood of your business being denied the ability to process credit card payments in the future.
Now the beauty of working with eChecks is that chargebacks will be a thing of the past as buyers assume all the risk. This is great news for your company as this means you no longer have to worry about any consumer protection policy that is rarely to the advantage of a merchant.
After How Many Days Will I Get a Deposit With an eCheck?
When you are using a high risk eCheck service, it only takes 24 hours for the funds to be deposited. It is much quicker than a high risk credit card processor! The latter can take from five days to longer than a week before your money will be available. Plus, high risk credit card processors also charge very expensive processing fees as well as service fees every month. Overall it is a win-win situation for everyone!
• eCheck payment processing is one the fastest growing forms of payment today! Merchants are realizing the benefits associated with eCheck payments; lower costs, more account stability and a reduction in transaction disputes.
• The eCheck payment industry has seen double digit transaction increases in each of the last three years. The benefits are overwhelming for merchants to start offering this payment method in addition to their current payment options.
Key Benefits Associated With Our eCheck Accounts Include:
• Low costs – eCheck processing rates are usually 40-60% less than regular card processing costs with more favorable terms to the merchant.
• Account stability – High risk merchants know how unstable merchant accounts can be. Credit/debit card processing accounts require that transactions dispute stay under 2-3%.
• Increased protection from chargebacks – For customers to dispute the merchant’s charge they must go into their bank and sign. The time frame is also much shorter than regular credit card chargebacks. This will virtually eliminate all frivolous chargebacks.
Global Pay LTD provides full service payment processing solutions to merchants of all sizes. Each eCheck solution includes our fraud protection system which is linked to our fraud scrubbing platform. Every payment is scrubbed over 30 different ways to make sure the payment is practically 100% valid and backed by funds. Fraud and NSF is virtually eliminated.
Merchants do not have to worry about signing checks or depositing funds, Global Pay handles everything. There are never any volume limits and companies of all sizes are approved and setup within the same timeframe, 1-3 days.
• Annual Memberships
• Adult Websites/Novelties
• Alcohol Sales via Internet and Phone
• Animals by Mail
• Bad Credit
• Bail Bonds – Card Not Present
• Business Opportunity
• Collections Agencies
• Continuity (free-trials, negative option/opt-out billing)
• Credit Repair/Credit Counseling
• Daily Deal Coupon Websites (like Groupon.com, Livingsocial.com, etc.)
• Dating Websites and Services
• Debt Reduction/Debt consolidation
• Discount Medical Cards/Memberships
• eBay Merchants
• Ebooks/Digital Downloads
• Electronic Cigarettes (E-Cigarettes) and Accessories
• Extended Warranties
• File Sharing/Cloud Hosting
• Financial Services
• Furniture/Home Décor
• Gift Certificates/Gift Cards
• Hotel Reservations
• Investing Advice – Stock Tips/Trading Software
• Large Ticket Sizes
• Legal Services
• Magazine Subscriptions
• Medical Services
• Multi-Level Marketing (MLM)
• Non-Accredited Degrees
• Nutraceuticals/Dietary Supplements
• Penny Auctions
• Precious Metals and Jewelry
• Prepaid Phone Cards
• Property Rentals
• Remote PC Technical Support
• Search Engine Marketing (SEO, PPC, etc.)
• Sports Picks and Handicapping
• Stun Guns/Personal Defense
• Tax Debt Reduction
• Tickets to Shows/Events (advanced booking)
• Timeshare Sales and Advertising
• TMF Merchants
• Tobacco Products
• Travel Services
• Video Streaming
• Warranty Services
• Web Hosting
• Vacation Rentals
High Risk Check Demand Draft
Global Pay will handle the review and depositing of checks into your business bank account. Each payment will be reviewed (checked) through nearly 30 different measures to make sure the payment is good and then will deposit the checks into your account. Businesses will receive deposits in less than 48 hours.
High Risk Check Drafting
Checking drafting is an inexpensive electronic payment system that allows businesses to easily accept payments from their customers. The check drafting system is different from the ACH (Automated Clearing House) system. High risk check drafting is processed online through a secured payment gateway and/or integrated into an existing website. The check drafting system will verify that the account holder does not have a negative history of writing bad checks along with a couple dozen other parameters it uses to filter good checks from bad checks.
High Risk Check Guarantee
Global Pay LTD offers check guarantee programs to high risk merchants. Check guarantee helps merchants accept payments without the hassle of receiving fraudulent or NSF checks. Our payment system will make certain that any checks you accept from your customers will clear; saving time and money. Businesses will not have to worry about accepting out of state checks or checks from new accounts. Global Pay’s check guarantee is available for low risk and high risk businesses alike.
High Risk Check Scrubbing
Check scrubbing is a requirement for every business that accepts checks or ACH payments; especially high risk ones. It does not matter how good your check processing solution is, if you consistently receive fraudulent checks or your checks are returned for NSF on a regular basis, you will eventually have your account closed. Global Pay’s check scrubbing program reviews your payments with nearly 30 different metrics to verify that your checks are over 95% good. You will find that your bank accounts and your processing solutions stay open.
High Risk Check Verification
Check verification is a quick and easy way to verify that check(s) are valid. Global Pay’s system offers the tools to assist your business in accurately deciding to process a customer’s payment or deny it. The verification system offers access to thousands of banks to make sure accounts are open, active and have a positive balance. Negative past history also factors into the verification process. This is all completed in the blink of an eye.
High Risk Check Conversion
Global Pay LTD is able to provide your business with check conversion processing solutions. Our check conversion system will speed up the time it normally takes to clear payments. Contact one of our merchant representatives and see how we are able to lower your processing costs and reduce your NSF checks.
What You Need To Know About High Risk eCheck Processing
As a fairly big online business you need to have several different ways for people to make payments to you. Sure, there is the classic credit card, but some people don’t have one or want to use one. Then there is PayPal, but it isn’t ideal for very much except for sending small payments or even money gifts. However having more options for people to choose from in terms of making payments is always the best and that’s why using a method of EFT or electronic funds transfer is usually good. These electronic payments are often referred to as Echecks because it’s much just like sending a check online. ACH actually stands for Automated Clearing House and it’s the entity that monitors and regulates the electronic transfer of money. If you are going to be accepting or making payments using Echecks then there are a few things that you know.
Why You And Your Business Should Use eChecks
There are a few reasons as to why using Echecks is a great way to let your customers make payments. As mentioned before not everybody uses credit cards or PayPal, so having an alternative is never bad. Also using Echecks is very convenient for both you and your customers for a number of reasons. First of all the need for using paper checks is eliminated and that means no more wasted money on check books and no more wasted time on waiting for the mail delivery system to do its job; transfers using Echecks are instant. Customers can also send their payments and payment info over the phone as well.
Echecks are also great in terms of documentation and customer assurance because as soon as an Echeck is sent you can send back an automatic receipt. With this payment method you can even setup recurring payments so that customers don’t even have to remember to pay; the system just does it automatically.
It’s also a lot easier for everybody because unlike using real checks, Echecks let you store customer information online so that their info will be stored for any future transactions. Another really convenient part is that with paper checks banks have to spend time processing them and that can take weeks sometimes. However an Echeck payment is entered into the system for processing as soon as it arrives. These types of payments can actually also be processed around the clock which means that you don’t have to wait for the bank to open, not to mention that payments can be processed on Sundays when banks are generally closed.
Next, eChecks cost less money to process than real checks do; Echecks are usually around 50 cents while real checks can cost substantially more. Using ACH and Echecks is a great way for you to save money because there is no need for check books and no need to make trips to the bank, not to mention that you have a lot more time to spend on more pressing business issues.
How Does ACH and eChecks Work?
One of the main benefits of using Echecks is that they are very simple to use. All that a customer has to do is enter their bank account information, select a date to make the payment on, and select the amount of payment to make. It couldn’t be any simpler because the payment is then deducted from the account and sent to the payee. Once the payment reaches the payee it is processed automatically and the money is deposited into their account. It’s much simpler than using paper checks for sure and it is one of the first payment options that companies seek when payments are to be made on a monthly basis.
Why High Risk eChecks are Good for Your Business
Many ecommerce businesses fall into the high risk category. If your business is one of them, you must be curious whether you should go for a credit card processing solution or eCheck or both. Unfortunately, getting credit card approval for a high risk business is very challenging. You will need to provide clean processing statements and there are; high monthly fees, high application fee, rolling reserves and many other things. Even if you fulfill every requirement, you may still not get approved. It happens due to guidelines provided by MasterCard and Visa which prohibits many industries from accepting credit cards.
In fact, the list of such type of businesses is very long. Even if you are lucky to get your credit card account approved, you must still remain very careful. The processor will suspend your processing ability and hold your money if you are getting too many chargebacks. Such a situation is more than enough to damage your business.
eCheck Services are Better
For high risk businesses, eCheck processing is a better option than credit cards. The eCheck processing is fast to get approved, and it is easy. Every type of business is approved if the product is legal to sell. It means you can accept eCheck payments for your services and products quickly.
High risk credit card processors usually charge huge up-front application fees that could be as much as one thousand dollars. Even still, you have a low chance of approval. The setup process for a high risk eCheck account is very cheap. You do not need to pay any application fee, and the monthly processing fees are very small. It is probably the fraction of what high risk credit card processors will charge you. Moreover, your high-risk eCheck application is most likely to get approved.
How is eCheck Different from ACH?
The substitute for traditional paper bank checks is electronic check (eCheck). The most common use of eChecks is easy internet transactions especially from the payments for ecommerce related services and products. Using eCheck is very simple. You just need to fill an online form which requires you to provide the account and routing information which is given on a paper check. Technology has made it easier to use your eChecks. The eCheck processor will deposit the funds within 3 business days once the account numbers and routing are submitted.
ACH is the financial transaction from the customer’s bank to the merchant’s bank. Due to increased security and speed of the internet, eChecks are now a popular way of completing electronic banking transactions.
Credit Cards and Chargebacks
The problem of chargebacks is the biggest challenge associated with credit cards when your ecommerce business is considered high risk. If you run a high risk ecommerce website, chances are that you will experience very high chargebacks.
Following are the four things that will happen to you due to chargebacks:
• Fight with the bank
• Extra charges up to $200
• Bad chargeback record
• Less chance of accepting credit cards in the future
Due to chargebacks, you will have to fight with the customer’s credit card issuing bank. In most cases, things will go against you. The reason is the type of business you are running because most high risk businesses are known for fraudulent activities.
Whenever you get a chargeback, you are charged an extra amount by the processor which could reach up to $100. Unfortunately, chargebacks keep affecting your chargeback record, and the outcome of the chargeback does not help you in anyway. In the end, you are left with a bad record and no product or money. The result is your losing your ability to accept payments through credit cards.
How eChecks are Different
With eChecks, you don’t have to fight any chargebacks because the entire risk is on the buyer’s side. It is such a great advantage for your high risk ecommerce business. You no longer must face customers that hide behind the protection policies of MasterCard and Visa. Even many buyers are scammers, but the protection policies go in their favor.
Time Required to Receive Deposits with eChecks
High risk merchants usually receive payments after five days to two weeks through high risk credit card processors. Sometimes, it can take more than one month. When you receive the amount, you are shocked to see how much is deducted from your payment.
The most common deductions are:
• Monthly service fees
• High processing rates
In the case of eChecks, you receive funds in just one day. In fact, there are three benefits of receiving payments in one day which are:
1. Faster service for customers
2. Faster profits for business
3. More money to reinvest into inventory
The entire process of the high risk eChecks can be divided into six steps:
1. Quick approval
2. No application fees
3. Lower monthly charges
4. Lower charges per transaction
5. No chargebacks
6. Receive payment in one day
Processing of eChecks
The processing of eChecks is simple. You can accept eChecks for your services and products by two ways. The first way is to accept the payment by email, mail or phone. For this, you must enter the information of customer’s eCheck into your online eCheck portal. When you enter information like account number and routing number, the system will verify the account and the availability of the funds. After submitting this information, a physical check is generated for you who is electronically deposited into your bank account. The entire process takes just one business day.
High Risk ACH Processing
ACH processing is used by many businesses to accept payments from their customers, and for good reason. It is less expensive and safer than card processing, in addition to the fact that approval and setup is much faster.
Over the past few years, more and more industries have become considered “High Risk” by NACHA (National Automated Clearinghouse Association). These tighter standards have led to the development of high risk ACH processing. One of the pioneers in this field was Global Pay LTD.
Our expert team concentrates on the following two services aimed at high risk companies: eChecks and high risk ACH processing. It does not matter if you have not received the green light for payment processing since our team virtually approves all kinds of businesses and can help you with your unique circumstances. Boasting countless years of experience, we are at hand to assist your business, answer your questions and offer continuous assistance to our valuable clients.
Global Pay LTD can give the green light to high risk ACH processing for businesses that normally will not be able to get ACH processing approval for their field or merchandise. Our high risk merchant services can help your company get high volume ACH processing. In fact, we like to believe that we are one of the leaders in the industry, thanks to our years of experience. We can approve high risk ACH payments and processing, high volume ACH processing and high risk eChecks.
Global Pay provides high risk merchant services to businesses based throughout the world. After years of providing reliable and competitively priced card processing, Global Pay has expanded into the ACH and eCheck processing industry. As a globally recognized payment processor, Global Pay LTD has arranged special terms and pricing for high risk merchants looking for ACH processing. High risk merchants who already have a card processing merchant account can prosper by setting up a separate ACH account that will allow for higher volumes at lower rates. Nearly every legal business is accepted and merchants can begin processing payments in less than five days.
More About High Risk ACH Processing
With the help of high risk ACH processing services, you can send a debit directly to your clients’ checking account to be paid for services rendered and merchandise that was sold. There are several companies that cannot open traditional ACH processing in their field; because products or services sold are regarded as “unacceptable” and therefore high risk ACH processing can be a key service.
• Load Balancing
• Shopping Cart, API Integration
• Virtual Terminal
• Recurring Billing Processing
• High Volume Processing
• High Ticket Processing
• No Limit Accounts
• No Credit Checks on Offshore Accounts
• CRM Payment Integration
• Batch Upload Processing
The Background of High Risk ACH Processing
Decades ago it required a lot of time and effort just to clear a check. Basically the check had to be cashed in at the bank before the actual check could be forwarded to the bank where it originated from so that money could get sent to the bank. It depended on the location, but this long process could take many days and in some instances even weeks!
Luckily in the mid-1970s the American Bank Association (ABA) introduced a significant change to how checks were cleared. Within the American Bank Association, the National Clearing House Association (NACHA) was created and they would be in charge of the Automated Clearing House network. The ACH network was created in order to forward info fast so that ledgers could get updated. The main objective behind the ACH network was to make the cashing of checks better, but it also meant that this process became more secure as transfers could now get completed much quicker. In short, it becomes riskier when the period between when the customer made the purchase and the actual product or service was rendered is longer as the likelihood of an issue return taking place increases when the check is awaiting approval.
The National Clearing House Association put in place certain specifications and is in charge of how direct deposits and pre-arranged payments are dealt with. As time went by, rules, regulations and processes changed. Back in the day the network was created to process transfers between institutions and banks that occurred again periodically, but its purpose has changed as the years have flown by to process a one-time transaction between individuals, companies and the government as well. Direct payroll deposits, settling of bills and tax refunds are just some of the transactions that are included.
Thanks to all the developments that have taken place in the world of technology after the Automated Clearing House network was established, the infrastructure behind the processing system could deal with how it expanded as the years have gone by. In addition, these technological advancements that are used by the financial industry have helped the system to grow year on year. As a matter of fact, the National Clearing House Association claims that the ACH volume increased to over 25 billion payments which translate to more than $40 trillion in value two years ago.
Efficiency and convenience are two of the pros that this system has to offer. Though, the most significant advantage has to be how quickly a check can be cleared by a bank and processed accordingly. It is a fact that processes usually become quicker and more efficient and it is safe to assume that the Automated Clearing House network will also benefit from this trend. There will be more advances being made in the financial industry that can include better reliability, more sophisticated hardware and quicker processes. Nowadays people are in favor of digitizing their daily financial transactions. Therefore, it is safe to bet that the manner in which checks get cleared will also be digitized. People will find a more sophisticated way to transfer checks electronically. With the help of digitization and the World Wide Web, the high risk ACH processing industry will for sure continue to develop.
So is there then a difference between eChecks and ACH and EFTs?
EFT is short for Electronic Funds Transfer. It is a broad term that is used for several kinds of financial transfers like direct deposits, wire transfers, ACH disbursements and electronic benefits payments to mention only a few examples.
ACH is short for Automated Clearing House. It refers to the electronic network that financial institutions in the US use and offers the infrastructure that gets utilized by companies that process payments.
Now, an electronic check (or eCheck) is a form of EFT that utilizes the ACH network in order to process payments. So, the amount gets withdrawn electronically from the client’s bank account, then it gets sent through with ACH network right to the banking institution of the company to whom the funds are owed where it gets deposited into the account of the payee. So, it is almost like a paper check, but the difference is that it all happens electronically.
How does Global Pay differ from other merchant providers?
The majority of payment processors in the industry today only utilize one or two different banks to place accounts. When they receive an application in from a business type that is not supported by either bank, the application gets declined. We represent over ten different banks and payment processors. We are able to setup nearly every business with ACH processing. There is rarely a case when we will need to decline an account. Even with the high approval rate, companies will still need to provide a completed application along with the normal supporting documentation.
Merchants that choose to partner with us will experience:
• Timely Approvals
• Access to Multiple Banks
• On Time Payouts
• On Time Reserve Payouts
• Merchant Support (by phone or email)
• Credit Card, Debit Card and ACH Processing Solutions
• Domestic and Offshore Processors
1. ACH will dramatically reduce your chargeback ratio. ACH transactions are harder to dispute than card transactions. Customers must go to their bank and sign the dispute form in order to dispute a charge. When credit card or debit card customers dispute a charge on their account they just call their issuing bank and dispute the charge.
2. ACH processing fees are usually 40-60% less than card processing.
3. Approval is much easier and much faster.
Payment Gateway Shipping and Fulfillment Management
Global Pay LTD provides fulfillment solutions to merchants in over 100 different countries throughout the world. Shipping and order fulfillment services are provided using a network of partners focused on streamlining the shipping process, all managed through the payment gateway. Consolidating your order management procedures will reduce your company’s workload and guarantee speedy delivery.
The in-house shipping and fulfillment solution will help to reinforce our distribution resources into an easy to use friendly service that will handle order fulfillment configured to the requirements of your business. Contact our offices today and learn more about restructuring your order fulfillment and shipping services into a user friendly simple solution, integrated directly with your payment gateway.
How Can High Risk eCheck Processing Help Your Business?
One way that your company can collect all its payments on time is with the help of electronic checks (also simply referred to as eChecks). Maybe a person has asked you before for an eCheck payment or perhaps you are looking into collecting eCheck payments from your clientele? Well, if you are not entirely up to speed with what this type of payment is all about, you can rest assured as some of the most frequently asked questions about eChecks have been answered below for your convenience.
This sounds great, but how much can I expect to pay to process eChecks?
Those that provide eCheck merchant accounts all have different fees that they charge for processing eChecks. A few companies that process eChecks opt to charge higher monthly fees and lower per-transaction fees and vice versa. Though, on average the fee per eCheck transaction can be anything from as little as $.30.
If a company wants to get an eCheck merchant account, what is the process that it must follow?
To sign up for an eCheck merchant account or an ACH merchant account is not that much different from signing up for a credit card merchant account. After the company has identified which merchant account provider will be the best for their unique needs, it will have to share info such as its Federal Tax ID, number of years operating as a business and an estimation of its processing volumes. The merchant account provider or payment processor will then enter all of this information into their application for approval. The eCheck approval process, usually only takes a few days.
High Risk Check 21
What’s Check 21 Payment Processing?
Check 21 is a type of electronic payment processing service. Instead of having to send a paper check, with Check 21 you can create a digital version of the paper check and use it for payment. So, this means that the transactions are cleared via bank-to-bank file transfer instead of using the Automated Clearing House (ACH) network. Though, just like with ACH, Check 21 payment processing can also be used for your online transactions, phone transactions, one-time debits as well as recurring debits.
The user experience provided by Check 21 payment processing is similar to that offered by ACH. Instead of using any card info, your clients or customers will send their payments to you via eChecks by offering account details and bank routing.
At the beginning, Check 21 payment processing was used for remote deposit capture (RDC) where paper checks were scanned to electronic images. Currently several banks allow you to snap a photo of a check on a mobile device and then deposit it electronically. Recently the way Check 21 is used has altered. Now the consumers can start processing transactions electronically instead of having to rely on paper checks.
A number of Check 21 processors make what they refer to as a “substitute check” that then gets forwarded to the merchant’s bank for approval. However, when you have too many returned and revoked transactions, this option will not work for your company. Plus, if your company does not have many transactions that get returned or revoked, you do not have to use Check 21 in the first place as ACH is a more affordable solution for processing low-risk transactions. Another possible obstacle that you can encounter when you use substitute checks is that a number of big banks in the United States will not welcome these types of checks and consequently will only return these.
Who Will Benefit By Using Check 21?
Check 21 is a wonderful way to process payments if you are involved with any high risk e-commerce field for example; credit repair, pharmacies, and so forth. When your company goes over the minimal number of returns and revokes needed by the ACH network, Check 21 payment processing is a great answer as it makes the provision for more returns and higher revoke ratios. If that is the case, it is advisable that you go for the end-to-end electronic image exchange. With this option, there is no need to use substitute checks as the transactions are forwarded to the Federal Reserve by using an e-format.
How Does Check 21 Work?
The best route for the majority of companies is to clear the Check 21 transactions with the help of a processor. This way all the transactions stay in its electronic format and as a result no substitute checks get used. The electronic files of all the transactions get forwarded to the Federal Reserve by your processor for approval. If there is a revoked transaction, instead of sending it to your bank, it gets returned to the account of your processor. This means that you will not have to suffer the consequences of any revoked transactions as the processor will deal with it instead of you.
As soon as the payment has been given the green light, the check account of the client is debited and the money will be deposited into your account. This means that your account remains protected.
If you have reached the conclusion that Check 21 is the correct solution for your type of business, you will have to apply for an account. This process is easy and all you will have to do is submit your application together with the required documents. After about three to seven business days, you will be informed whether or not your account has been given the stamp of approval.
The Advantages Of Using Check 21
Although credit card processing is quicker than Check 21 payment processing, there are definitely a few benefits in store when you opt for Check 21 payment processing. One of its biggest perks is the convenience it offers to merchants. When you opt for Check 21 processing, you do not have to sort out stacks of paper checks or spend time destroying copies which makes it much simpler. Plus, that also means you no longer have to fear that you will misplace a paper check, because a digital substitute is created that is legally identical to the one which was first created.
It is significantly easier to deposit checks electronically than submitting a paper check and can in many instances minimize processing delays caused by the time and money required to send these paper checks. What is more, similar to ACH processing, it is in many instances significantly less vulnerable to fraudulent activity too.
Rules Relating To The Use Of Check 21
Although it is still significantly more convenient than using paper checks, in order to guarantee that the processing remains secure and works efficiently there are still a couple of rules that the traders, financial institutions and consumers have to adhere to. For starters, the original check has to comply with the standards set for the industry such as physical attributes that include size and paper quality. The substitute checks must have images of both sides of the original check and a magnetic ink character recognition (MICR) line with the details that appear on the original check. These are only some of the stipulations. The banks that do take part are not obligated to follow any rules for control; instead the individual institution has to create agreements between both parties to help with the exchange of info.
International High Risk eCheck Processing With Check 21
Are you searching for a way to process your payments that does not have too many risks involved? We boast a method of processing your payments that is perfect for high risk companies located across the globe. You can receive your money within a matter of a few minutes without any holds or reserves when you make use of our check 22 payment processing. On top of that, we also provide a payment gateway for card processing that you can count on.
The team at VISA is tirelessly looking for merchant accounts that pose a lot of risk and they are going as far as to close many of these accounts. Thus, we at all times suggest that you use our check 22 service in conjunction with other standard online payment methods. Our payment processing service is perfect for companies that offer services or products such as tech support and medical marijuana dispensaries to mention only two industries.
These days it is almost out of the question to locate online card processing for companies that form part of these kinds of industries (but you probably know that by now). The majority of payment providers refuse to create merchant accounts for these companies since they come with a significant risk of chargebacks. You can rest assured as you can solely rely on our service or you can use it together with the system that you presently use.
Key Features Offered By Our Check 21 eCheck Solution:
• Any person can pay you via a cell phone.
• It only takes a few minutes to activate your account.
• You do not need any reserves held.
• You can use whichever bank account accepts US check deposits (if your bank does not accept US checks, another payment arrangement can be made).
• You can get paid for the entire amount charged.
• The amount is deducted directly from the client’s checking account.
• You can get a payment in a matter of a few minutes.
• Our affordable rates are charged separately.
• If required, training can be provided.
More About A Check 21 Payment
It is an electronic version of paper checks. Thanks to eCheck, you as the merchant will get your money in just a matter of a few minutes. It is a type of “push” transaction which means that the client or customer who is paying you selects when and the amount he/she wants to pay with the use of his/her electronic signature. When clients click on the button, they agree to add their signature electronically and by doing this authorizes the check which has been created remotely.
The person who is making the payment agrees that if any disagreement with the business deal enters into the picture, he/she will resolve the issue directly with the business. Also, the right to approach a financial institution to chargeback the check is relinquished. He/she consents that if there is a violation of the warranty, legal steps may be taken that could include an extra charge to pay back the collection and bank charges.
How Does This Great Service Work?
You can use two primary methods to receive payments, namely Virtual Terminal (VPoS) Payments and Pay Online Payments.
‘Pay Online’ Payments
This type of service has been created so that your clients or customers can send you payments online at whichever time without the fuss of phone calls. There is no need to speak with the customer/client. The only thing you have to do in order to receive your payment in a matter of minutes is to ask the client to click on ‘Pay Online’ and follow the directions.
It is very straightforward. When they click on ‘Pay Online’, they are required to add their contact number, amount they want to pay, an explanation of the payment and press ‘Continue’.
Is it a returning customer? The contact number will be acknowledged and a text message will be sent in matter of seconds to approve the payment. The bank account details will be asked when the contact details entered are not recognized.
As soon as the payment has been approved, an email with a PDF will be sent to you containing a check that you can print and deposit at a bank that accepts United States checks (if your bank does not accept US checks, another arrangement can be made which will include the wiring of funds at an extra cost).
Just log in and you are set to process payments. Add the amount (this is compulsory), then add the cell phone number of the client/customer and the verification method you want to use for the transaction.
You have three options for verification – bank account verification, text message authorization or no verification. With the first option, the ownership of the particular bank account is validated. Text message authorization validates that the writer of the check gave permission for the eCheck to be released. If no verification is selected, the authorization is presumed based on the relationship between the business and the client/customer. Just like with the ‘Pay Online’ method, the check will be sent to you via email within only five minutes.
Prior to giving the payment the green light, eCheck will validate its database for any negative experiences using the account number, contact details (email and cell phone number) and bank routing. If there is a match, the eCheck will not be accepted. The bank routing, present balance and number of the account are also validated.
Various Payment Options
Our dedicated team understands the individual payment requirements in the warranty field. Our main goal is to process the payments of our clients quickly as well as efficiently. The majority of people in the industry prefer to integrate their CRM so that recurring payments can be arranged while they are on the phone with their customers. This is something that our team can do for you.
In the event that this is not the correct arrangement for your needs, our team can also provide website payment integration, check terminal on your desktop or a call center virtual terminal. We are available to help you with telemarketing CRM integration, secure e-commerce ACH payments or virtual terminals with recurring payments. Let us help you to identify the ideal payment choice for your company.
Global Pay LTD is a Leader in the eCheck Processing Industry
• Sign up now and start accepting eCheck payments in less than 3 days from nearly any checking account. Virtually every industry is accepted!
• Are you tired of chargebacks from buyer’s remorse? eCheck processing is harder for customers to dispute after their account has been debited.
• Recurring billing and large ticket merchants will always find a benefit in using eCheck processing over card processing.
• Our customized payment solutions allow merchants to accept credit cards, debit cards and eCheck payments by just applying with one application. eCheck processing is usually approved before credit card processing is.
In addition to high risk eCheck processing, Global Pay LTD also processes payments for low risk merchants. Click the “apply now” link below and then complete the short 4 question form. An account representative will contact you back within 24 hours.