For high-risk merchants, setting up an offshore company and acquiring the suitable payment processing sometimes can be very troublesome. As their business falls in the high-risk category, many reputed offshore banks are reluctant to provide their services to these high-risk merchants.
These banks prefer to offer their merchant accounts and processing services to low-risk businesses in contrast to high-risk businesses. However, there are some banks which generally specialize in high-risk merchant processing services and offer various payments options to present to their customers. Offering e-checks as payment options to your customer is a viable way to increase your internet sales. E-checks or electronic checks as commonly known as, electronically debit payments from customer’s bank’s account and deposit the money in merchant’s account automatically. In addition to this, E-checks enable those customers to pay who do not have cards or prefer to pay via check. With the endless competition on the internet today, these are safer, secure and convenient payment option which lifts the sales up to 20-30%, as revealed by many high-risk merchants.E-checks are significantly more valuable to high-risk merchants as these offer lower processing rates than cards and other payment options. Moreover, establishing a Check 21 processing or ACH merchant account is quite easier and gets approved quickly and ready to use than the card merchant account. These create a more stable cash flow with recurring or subscription billing models for high-risk merchants.
On contrary to this credit card processing can have issues such as chargebacks, data breaches, expired cards, and much more. Each year approx two cards are re-issued due to these issues.
E-checks help in avoiding these issues resulting in a more stable and convenient business flow.Applying for a Check 21 or ACH merchant account is very easy and requires submitting an application form along with supporting documents. This generally takes 5 business working days to be approved and once approved it enables you to process online transactions including Check 21 processing and other electronic check processing. With approved e-check account you can also take checks through phone, fax or mail, in whatever way you find convenient.
Despite several benefits which the e-check processing, there are still many high-risk merchants specializing in Online pharmacy, payday loans, dating sites, call centers, nutraceuticals, adult entertainment, e-cigarettes, etc who do not offer the e-check payment option to their customers and are giving away a big proportion of their sales and profit to their competitors.
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