Check payments are so 1970s.
The 1970s called. It wants its checks back.
What’s longer than an EMV transaction at checkout? Paying by check.
We’ve heard all the jokes and references how check payments are outdated. We’ve also heard all the misconceptions that checks are becoming obsolete. We disagree emphatically.
Checks, especially digital and virtual, are as popular for high risk merchants as ever, and we have some numbers to back it up: In 2016, Instabill sold more than 50 check solutions to U.S. merchants, including virtual checks, Check 21 and direct debit.
Acquiring banks can be moody. They may approve of your high risk industry today, but next week, they might deem it too risky, and close your merchant account. When you’re running a high risk e-commerce business – especially in this day and age – you just never know.
Below are three reasons merchants should use check solutions:
Because Instabill is a well-known high risk payment processor, we’ll field merchant account inquiries from merchants who have been MATCH-listed, merchants who have imperfect credit history. Those merchants who may not qualify for credit card processing, can rely on check solutions to rebuild financials, then reapply for a merchant account when the time is right.
When a consumer is unhappy with a purchase made by any kind of check payment, s/he is more apt to contact the merchant than the bank to stop payment on a check. Most banks charge a small (and annoying) fee to stop check payments. By contacting the merchant, arrangements can be made for a return or store credit.
(If only consumers would do the same with credit card purchases.)
Sure, check solutions are optimal for businesses that use recurring billing, subscriptions and MOTO. Echoing our first point, however, in an age where high risk e-commerce merchants are being shut down, check payments are good for any business.
“If a credit card gets declined, having a check solution will allow you, the merchant, another form of payment so as to not lose the sale,” said Instabill Sales manager Wendy Jacques.
Instabill has trusted acquiring banking partners in place which offer the customized check solutions for your business, including virtual checks, Check21, image cash letters and more. Speak with a live merchant account manager at 1-800-530-2444 to find which solution best fits your business.