High Risk eCheck/ACH
vs Credit Cards
Do you sell products and/or services that fall under a high-risk category? If so, you’re probably debating whether you should apply for a credit card processing solution, an eCheck or ACH processing service, or both. You’ve also probably discovered that getting approved to accept credit cards can be quite challenging. High-risk credit card processors typically require many things such as a long history of squeaky-clean processing statements, high application/up-front fees, high monthly fees, potential rolling reserves…and more.
Even after you clear all of these hurdles, you still may not be approved to accept credit cards. Many industries are prohibited from accepting credit cards, based on Visa and Master Card’s own guidelines.
Among the types of credit card prohibited merchant types are cryptocurrency trading, gambling, THC/Marijuana sales, certain types of supplements, and many more… In fact, even if you are approved to accept credit cards, you still have to be careful not to get caught up in too many chargebacks, or you may end up having your money held and processing ability suspended, which can cause serious damage to your business.
eCheck Services May be a Better Fit for Your Business…Here’s why
Ok…so why should you consider processing e-checks, rather than credit cards, especially for your high-risk business? Well, for starters, it’s easy and fast to get approved. In fact, almost every business type, regardless of what you are selling “as long as it’s legal in your state”, will get approved. That means you can accept e-check payments for your products and services almost immediately.
Then, there are the fees. High risk credit card processors typically charge high up-front application fees of as much as one thousand dollars or more, with far lower chance of approval. On the other hand, the setup process for high-risk e-checks is far less costly, with no upfront application fees, and very small monthly processing fees, which are a small fraction of what high risk credit card processors charge. And, with a high-risk e-check application, you are pretty much guaranteed to be approved.
What Is An eCheck And How Is It Different From An ACH?
An eCheck (Electronic Check), is a digital substitute for a traditional paper bank check. It is most commonly used to facilitate internet/web based transactions, mostly as a form of payment for eCommerce related products and services. Using an eCheck is as simple as filling in an online form with the account and routing information found on a paper check. Recent advances in technology have produced even easier ways of using eChecks, such as desktop check scanning devices, as well as mobile apps which can scan and upload photos of each side of the physical check. Once the routing and account numbers have been submitted to the eCheck processor, the funds will be usually deposited within 1-3 business days. Click Here for more information.
An ACH is a financial transaction from the buyer’s bank to your bank THEY initiate, An eCheck is the same thing except YOU initiate the transaction. View on Intuit.com. The internet has increased the speed and security of electronic banking transactions such as eChecks.
View this PDF for more information.
Chargebacks With Credit Cards
Let’s not forget about one of the biggest risks to accepting credit cards for your high-risk products and services….CHARGEBACKS! Yes, the dreaded “C” word. When you accept credit cards for high risk products, you run an exceptionally high risk for chargebacks. And when you get a charge-back, 4 things happen.
1. You have to fight with the buyer’s credit card issuing bank, which rarely ends well for YOU the seller, since your business type is already a well-known target of fraud.
2. You end up being charged upwards of $50-$100 for each chargeback occurrence, regardless of the outcome.
3. This ends up going against your chargeback record, regardless of the outcome.
4. You end up with no product, no money, a stained record, and a higher chance of losing your ability to continue accepting credit cards.
What about Chargebacks with eChecks?
There are no chargebacks with echecks! There is no such thing. The risk is 100% taken on the part of the buyer. This is huge for your business because you don’t have to risk someone hiding behind well-known and often abused Visa/MasterCard consumer purchase protection policies which always favor the buyer, even if the buyer is a scammer.
How Long Does it Take to Receive Deposits with eChecks?
Last but not least is the amount of time it takes to get your money. With a high risk credit card processor, it can take anywhere from 5 days to weeks before your funds get released. In some cases, it can take over a month. The amount you will typically see deposited will be what is left over after deductions are taken for extremely high processing rates, monthly service fees, and holdbacks…aka rolling reserves.
With high risk echeck services, the funds get deposited in 1 DAY. That means faster service for your customers, faster profits for your business, and more money to reinvest back into inventory.
So, Let’s Recap.
With High-risk eCheck Processing;
- You get approved very quickly
- You pay nothing to apply
- You pay far less monthly
- You pay far less per transaction
- You don’t have to worry about chargebacks
- You get your money in 1 day
So, how does eCheck Processing Work?
It’s very simple, and very similar to how credit cards work. There are 2 ways to accept echecks for your products and services. If you are accepting payment by phone, mail, or email, you can enter the customer’s echeck information into your online echeck portal. If your customer is purchasing a service, product or membership on your website, you will be provided with “add to cart” or “buy it now” buttons, for placement next to the corresponding products on your website. When echeck information, such as checking account routing and account numbers have been entered, our system will verify that the checking account is real, and that the funds are available. Upon submission of the echeck information, a physical check is generated on our end, and is electronically deposited directly into your bank account, typically within 1 business day. That’s it! We also have a service available for high-volume merchants, where your customer can actually take a picture of the front and back of their check, and it will be deposited into your bank directly and immediately!
Benefits of Accepting Checks Online and Over the Phone
Whether you want to accept checks in person, over the phone, on your website, or via email, HighRiskSolutions.com has the perfect online check processing solution for your business. When you take checks for payment online, you benefit from;
- Same Day Remote Deposit of funds into your checking account
- Eliminating manual deposits at your bank
- Adding a Check Payment Option right through your website
- No Background Credit Check
- Automatic Approval
- Online Virtual Terminal to Enter check information manually
Getting Started with eCheck Processing Services
If you are ready to begin accepting echeck payments for your high risk products and services, please get started by CLICKING HERE to visit our online echeck application page. We will get back to you within 1 business day with an incredibly low rate quote. Once you approve it, we will activate your account and you will be ready to begin selling your products and services and building your business!