In the first quarter of 2016, Instabill merchant account managers sold very few virtual check solutions – enough to count on one hand. In April, however, our virtual check options surged in popularity and into the double digits.
When our merchant account managers are pursuing leads and offering our merchant services, we are sure to offer ACH, virtual check payment options, Check 21 and direct debit. Why do we do this? We feel check solutions can come in handy for merchants – for three reasons.
Our 3 Theories on Virtual Check Solutions
There are a number of reasons merchants are choosing virtual check solutions along with credit card processing:
1. Merchants are realizing they can stay in business
Acquiring banks sometimes decide on a whim to abruptly stop payment processing for a high risk industry, for any reason or no reason. We see it far too often. Instabill’s virtual check solutions, however, can keep a high risk merchant in business until they find another acquiring bank which suits their industry.
2. It goes back to Visa’s new chargeback and fraud threshold
We’ve blogged often regarding Visa’s new chargeback and fraud monitoring program, in which it reduced its chargeback threshold for domestic merchants from 2 percent of sales or 200 chargebacks per month to 1 percent/100 per month.
It was and is a seismic shift for many merchants, causing them to reconsider their chargeback methods. With virtual check solutions, a merchant’s chargeback frequency will decrease.
3. It is as secure as it gets
In the age of the data breach, merchants are considering payments security in decision-making more than ever. With same day ACH nearing, we feel more merchants will opt for check solutions. From 2013 to 2014, ACH payments grew 4 percent ($38.7 trillion).
How Does a Virtual Check Work?
Ever pay your utility bills online? It’s just about the same thing.
When a consumer pays his/her utility bills online, the utility provider (the merchant) creates a virtual check by entering the consumer’s bank account information into a secure virtual terminal or checkout page. The merchant submits the transaction and awaits verification.
Tech Support Remains Bestselling Industry
While Instabill enjoyed a spike in merchants opting for virtual check solutions, the industry of tech support remained as its bestselling merchant account in April for the fourth straight month. Other top selling accounts included adult content, nutraceuticals and credit repair, while merchant accounts for medical marijuana, multilevel marketing and business services were also sold.
Instabill offers merchant services for more than 90 industries, both high and low risk, with domestic, offshore and international banking partners. To get started, click the live chat option below or speak one-on-one with a merchant account manager at 1-800-318-2713.