High Risk Check Processing
How can you get a high risk check processing account? The key is to think outside the ACH box.
Electronic checks are the most popular alternative payment method chosen by consumers. Merchants in high risk industries increase sales simply by offering electronic checks as a payment option at checkout.
In the old days, merchants could rely on the ACH network for high risk check processing. It was an old, slow, reliable batch-oriented system for clearing electronic transactions. But, even in the best of times, it was not designed for the special needs high risk check processing.
The ACH network is governed by NACHA operating rules. These rules have always been restrictive for high risk merchants. There are all types of return codes. The operating rules are hundreds of pages long, complex and hard to understand.
The ACH network has always been challenging for all but the most mundane merchants such as utility or insurance companies. Deciphering and interpreting the rules took time and sometimes expert (and expensive) professional advice.
In the past few years, the NACHA rules have tightened significantly. As a result, High Risk Check Processing through the ACH network is now almost impossible.
Indeed, even traditional businesses are having a difficult time complying with NACHA rules. Chargebacks must be kept under 1%. Returns are closely monitored.
With the current economic climate, 3rd party ACH processors are being driven out of business. And underwriting for ACH accounts by the remaining processors is becoming more restrictive every day.
Still, it’s important to be able to accept echecks as payments. Merchants who offer electronic checks as payment experience sales lifts of 8-20%.
New technology based on Check 21 legislation is the best method of processing high risk checks. Modern techniques have created solutions which free you from the restrictive ACH network. Improved processing methods provide valuable benefits for high risk merchants that want to offer electronic checks as a payment option.
With the new solution for high risk check processing, transactions no longer go through the ACH network, although the Federal Reserve still clears the checks. There is no more waiting 3-4 days for a transaction to clear and up to 7 days to settle.
Instead, checks are cleared by bank-to-bank transfer. Since there is no middleman, checks clear in 1 day or less. Funds are settled into your account within 1 day.
Checks are cleared faster; therefore, the risk of NSF is decreased. Fraudulent transactions are discovered sooner. Chargebacks are drastically reduced. Saving you money and streamlining business operations.
With modern high risk check processing, you own the depository account. Settlement of cleared checks is directly into your account not into a 3rd party ACH processor account. You control your money and improve access to your working capital
But, wait. It gets better. There are no reserves. That’s right. By using high risk check processing technology, you eliminate needless and expensive hold-backs by an ACH processor. .
Processing the old-fashioned way, reserves were required because the ACH processor acted as a middleman. In order to protect itself from liability, the processor assessed reserves against the merchants. Reserves were lost if the ACH processor went out of business or simply decided not to return the reserve.
Smart merchants realize that new technology properly deployed is one secret of business success. Use the power of technology to take control of your High Risk Check Processing today.
http://www.nationalach.com/
.
.
By Tina Brandon
Most Viewed Posts
Comments
Leave a Reply
Business Feed- Business Storage Solution For A Growing Company June 19, 2009If your business is growing, you’ll discover that your business needs a storage solution! No matter what kind of work you do and what kind of industry you work in, you’ll discover that over time, you are going to accumulate things that you don’t need every day, but that you don’t want to throw away [...]
- Why are Online Payday Loans Advantageous? June 18, 2009In today’s world of a stumbling economy have you managed to pay all your bills in time and still have money left over to cater to your extra needs? If this is the case then you have done a commendable job in managing your resources. But this is most unlikely for an average wage earner. [...]
- Social Networking Aspects of Reverse Phone Lookup June 17, 2009Reverse phone lookup services have been around since more than a decade now and is one of those rare services which have kept evolving keeping up with the changing times. Already this service was one of the fastest growing services on the internet and a must have for a lot of individual or business users. [...]
- High Risk Check Processing June 17, 2009How can you get a high risk check processing account? The key is to think outside the ACH box. Electronic checks are the most popular alternative payment method chosen by consumers. Merchants in high risk industries increase sales simply by offering electronic checks as a payment option at checkout. In the old days, merchants could [...]
- Bathing for Older People June 17, 2009The fundamental purpose of bathing is to maintain health and physical well being of the body. While most young, able-bodied people do not think twice about taking bath, bathing is more difficult, more time consuming and more hazardous for older people, especially for older people with disabilities. The Gallup organization in 1983 surveyed 1,500 non-instituti […]
- Nationwide Answering Service Can Make Small Businesses Look More Professional June 17, 2009A couple of problems many small businesses face are handling after-hours phone calls and dealing with simultaneous incoming calls. It can be difficult to handle incoming calls when the person answering phones is also your sales department or your shipping manager, which can be the case in a small office. And most small [...]
- Operator Answering Service Outsourcing Ideal for After-Hours Calls June 17, 2009Many businesses will hire very competent people to answer their phones and think they have customer service, appointment scheduling, or order taking down to a perfect science. Then everyone goes home for the day, or everyone leaves for the weekend. Businesses who wish to keep incoming calls in-house need to consider the problems that occur [...]
- Choose From A Range of Curtain Rods! June 17, 2009People attach much importance to the way deck up their home. There are various changes that can be brought about. Furnishings, interior decoration, can all help give a new look to a house. You can definitely re-do your home. For instance, a seemingly insignificant part such as a curtain rod can be made to look [...]
- Give a New Look to Your House With Designer Drawer Pulls! June 17, 2009Have you been planning to re-do your home? Are you worried because you do not have much idea about where to shop around for various home furnishings? Don’t worry. You can get ideas on this by looking online too. There are many websites that provide information on home furnishings. However, if you wish to give [...]
- Give a New Look to Your House With Designer Drawer Pulls! June 17, 2009Have you been planning to re-do your home? Are you worried because you do not have much idea about where to shop around for various home furnishings? Don’t worry. You can get ideas on this by looking online too. There are many websites that provide information on home furnishings. However, if you wish to give [...]
- Business Storage Solution For A Growing Company June 19, 2009