Call us old school, but as the payments ecosystem continues to shift away from cash and checks towards credit cards, debit cards and wallets, we remain a big proponent for electronic check solutions. Of course, we specialize in credit, debit and wallet solutions for all types of high risk industries. Because we are in the high risk niche, we value check payments as an underused and underrated method of payment acceptance by online merchants. In fact, we propose it as a solution whenever possible to a qualified merchant account lead.
“No matter what the industry, we’ll ask the prospective merchant if they would like to have a check solution as well,” said Instabill Sales Manager Wendy Jacques. “Anyone who wants credit card processing should also offer check solutions.”
In the high risk space, sometimes there is uncertainty
We can hear the chatter: Why offer a check solution to an online merchant when there are far more modern methods of payment acceptance? We get it.
True, there are more efficient payment methods available. But high risk merchants are often left emptyhanded when needing a merchant account for a myriad of reasons:
- Startup or lack of processing history
- Imperfect, flawed credit
- High chargeback rate
This is the very reason why we advocate businesses to opt in for electronic check solutions: Electronic checks are a safe, practical alternative for merchants who, for better or worse, fit the above criteria.
There are other reasons for online merchants to opt for check solutions:
1. The population that prefers a check payment
Check payments remain the preferred method of a small population. Perhaps it’s the spike in credit card fraud, or just a habit, but there is an audience that remains steadfast for check solutions.
2. Credit card declines?
Credit card declines, for any reason, are a problem for merchants who solely offer credit and debit card payment solutions. When a merchant has a card decline, that is the end of the sale. An electronic check payment option can rescue a sale.
3. Typically faster approval and setup
When a merchant applies for a merchant account, depending on the application packet, it can take some time for an approval. Approvals for a check payment solution are usually between 3-5 business days, but sometimes even within 48 hours. Check payments offer a practical payment solution until a merchant account approval; a viable way to bridge a gap.
Electronic check solutions are good for all high risk industries
A while back, we blogged about certain industries for which finding credit card processing solutions were increasingly difficult opposed to 3-5 years ago — tech support, multilevel and telemarketing among them. More than ever, acquiring banks are leery of providing merchant accounts for credit card processing for certain high risk industries. For some, the risk is simply too much to take on.
Check processing works for all industries, particularly those considered to be high risk. Of course, there are industries or businesses that are considered ideal for check processing, such as subscriptions, collections or loan services. Recently, however, we’ve provided eCheck processing for merchants in tech support, direct response, travel and CBD.
There is good news for electronic checks
To remain relevant in the world of payments, NACHA (National Automated Clearing House Association), announced in 2016 that ACH payments would migrate to a same-day clearance format in three phases beginning in September of 2016.
Friday, March 16, 2018 marks the beginning of the third phase of same-day ACH, which will make all types of ACH payments – including debits and credits – eligible for same day processing.
With a 10-minute conversation, Instabill merchant account experts can detail the different electronic check solutions for your business. Speak one-on-one with us at 1-800-530-2444 today.
