Lately, more and more US-based high-risk merchants we speak to have been using ACH processing as an option at their checkout. What is ACH processing and eCheck processing, and should you start using it? Let’s discuss both, their benefits, and whether they’re right for your online business.
So, what’s the difference between ACH and eChecks?
Well, not much really. Automated Clearing House (ACH) processing and eChecks are practically the same thing, with ACH being the network and eChecks being the actual payment you receive. ACH is the network of financial transactions that allow different banks to communicate with one another. With this network, funds can move freely to and from connected bank accounts. In simple terms, ACH processing is basically like paying with a check for online purchases. All the customer does is input their bank account info safely and securely into an order form at your checkout. For eChecks, you need a visual of the actual check being used to make the purchase.
What are the benefits of using ACH processing/eChecks?
One significant benefit of using ACH processing is risk reduction. As a high-risk merchant, you’re probably on high alert to avoid fraud, chargebacks or customer disputes. These risks cost your business time and money, both of which you can’t afford to waste.
Another great benefit is increased conversions. You can boost sales on average 5-7% by catering to customers that might not have a credit or debit card! Conversions will increase from customers that might have had their credit or debit card declined. If the money is in your customer’s bank account, then you can collect!
When it comes to chargebacks and returns, refunds are permitted up to seven days. Yes, chargebacks are permitted via ACH. How is that a benefit? Well, ACH chargebacks don’t have the same consequences as credit card chargebacks. For example, you won’t get MATCH listed (Member Alert to Control High-Risk). Should your ACH account ever get shut down, you will likely have no trouble finding another provider. If you are currently MATCH listed, ACH processing can be a great alternative to a merchant account. Moreover, you can build credible processing history from this method of payment to finally get a MID.
ACH and eChecks take the money directly from the customer’s account within 24-48 hours. By withdrawing the money directly from a customer’s account, the risk of credit card chargebacks or customer disputes decrease. Because the buyer is submitting an eCheck directly from their bank account, declined orders due to insufficient funds on a credit card are reduced.
A final benefit of ACH is that it has a much lower fee compared to other payment methods (besides cold, hard cash). eChecks aren’t complicated for your customers either, so it’s a win-win payment method for both sides of the transaction. Because the entire transaction is digital, you won’t have to deal with bank trips, or paper invoices and checks.
Are they right for your merchant account?
Good news: you don’t need a merchant account to have ACH processing! ACH is a standalone service. So your merchant account and ACH are unrelated.
We’ve found that virtually all high-risk merchants benefit from implementing ACH processing. For example, if you’re a CBD merchant finding it tough to get a merchant account, ACH processing might be an alternative.
Whether you’re a hemp merchant, credit repair expert, nutraceutical company, or precious metal dealer, your business could greatly benefit from this payment method. By using a reputable merchant service provider, connecting with an ACH processor is easier than trying to find one and completing the application process alone.
Adding ACH to Your Checkout
You must integrate ACH processing into your checkout page to get the advantage of boosting your sales. This can be done by adding a form to your checkout process and using file types like CSV to send batch orders to your ACH processor. If you work with DirectPayNet, we’ll connect you with right processors to bring you one step closer to securing ACH for your online store. The best part is your customers won’t notice a difference except for the added convenience!
Let us help!
ACH processing and eChecks are the perfect solutions to boost your revenue and reduce your chargeback problems! If you’re ready to provide your customers with more flexibility at the checkout and reduce your risk, get in touch with DirectPayNet today!