Are you a high-risk merchant unable to obtain suitable payment processing services? You may have been classified in this category because you operate in the high-risk industry, or have bad credit history, or it’s where your business is located, or any other reason. Many reputed offshore banks do not provide their services to the high-risk businesses because of the high risk associated with them. However, there are some processors and banks which specialize in providing processing services to high-risk businesses through their high-risk merchant accounts.
These banks provide a number of processing services including e-check processing which is one of the easiest ways to increase your profit. E-check processing can boost up your sale by up to 20% offering you a remarkable profit. E-checks help you capture those customers who do not have cards or are maxed out on their cards, or simply prefer to pay via a direct debit from the bank account. Offering E-check processing is beneficial because the more way customers can pay you the more sales you can make. E-checks are the most popular payment option for US buyers. If you do not offer e-checks as payment processing option then surely you are losing out some sales to your competitors while if you offer e-check processing you will take sales away from your competitors who are not offering e-check processing.
E-checks electronically deduct money from customer’s bank account and credit the funds to your business account. These are processed through two ways – ACH network and e-check technology based upon Check 21. However, this is decided through your business requirements. If you can keep revokes or chargebacks under 0.5% and return under 15%, then ACH can be a good solution. Alternatively, E-check 21 is a good alternative if your chargebacks exceed the given ratios. E-check processing also offers reduced risk for high-risk merchants. Traditional card transactions carry a greater risk of contingent liabilities in comparison to electronic check transactions. After a purchase is made, a customer can revoke or chargeback a card transaction for up to 180 days. ACH offers a customer 60 days of chargeback. With e-check 21 the chargeback period is 40 days.
Lastly, setting up a high-risk merchant account is very simpler and easier than card accounts. To apply, you simply need to submit an application form along with other required documents such as identity proof, bank processing statements, etc. account approval usually takes 5-7 business days. For better understanding and complete knowledge you can also take the help of an offshore service provider.
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