Why Your Business Should Accept eChecks
If you are like most merchants you always want to maximize sales. And also one way to maintain money flowing in is to accept as many payment options that are convenient for both your business as well as their consumers. eCheck payment processing is one.
eCheck is an electronic version of a paper check. It is also referred to as electronic check, online check, internet check, and direct debit. eChecks do not use the Automated Clearing House (ACH) network. Because of this eCheck is much easier to get approved for. However, the fundamentals are basically the same. The funds are deposited into your bank account by your e-Check payment provider.
How Do Electronic Checks Vary From Paper Checks?
While eChecks are electronic, physical checks are, of course, paper. And also most likely to antiquated in the future. Fewer people are using physical checks for home expenses. It seems most like the benefit of paying their bills electronically by using ACH and eChecks.
In addition, more purchases are made online. Inspiring new digital types of settlements that take place effortlessly, as well as rapidly. On the internet retail sales in the US were up 15% to $500 billion in 2020, and are anticipated to continue to acquire a larger share of overall commerce.
You will notice that eCheck payments take much less time to process than paper checks. There are reasons for this. I is the time and personnel it takes to transfer paper checks at a financial institution. And paper checks require longer handling and hold times. eChecks are fully automated.
What’s the Distinction Between eChecks Credit Card Processing?
eCheck payments function in different a way than your credit card payments. The most significant distinction you will see is there are no bank card interchange fees for eCheck acceptance. This will result in savings for your business. This can have a huge impact if your business does recurring billing or is subscription-based.
How Do eChecks Measure Up To EFT and Bank Wire?
EFT is an acronym for electronic funds transfer. It’s a broad term that covers several types of digital settlements. It includes eCheck, and ACH. Primarily, payments like eChecks and ACH are kinds of EFT. However, not all EFT transactions are eChecks or ACH.
Bank transfers transfer funds from one checking account to another. Unlike ACH transfers which take place automatically, wires are done manually. As a result of this, you will pay more for wires than ACH. Another distinct distinction is that, unlike ACH, you can not reverse a wire transfer. Due to this, they are considered less secure than ACH.
Exactly How Does eCheck Payment Processing Work?
In order for your business to accept eChecks, you must first get your buyer’s bank info. The information that you need is the same info that is on their paper check. You can do this over the phone, online, or by text message or email. A good eCheck processing company will provide more robust features for your business. In addition to the above, you can have “pay here” buttons to put on your website and email. I am also aware of “image capture”. This feature allows your customer to take a photo of their paper check and it will be processed. Your provider should also be able to integrate eChecks with your payment gateway and shopping cart.
Can eCheck Boost Profits For My Business?
In short, absolutely! While eCheck acceptance can be great for any kind of type of company, the option is particularly well-matched if you have one of the following businesses:
Subscription-Based Services
From free trial nutraceuticals, SEO, hosting services, and monthly memberships, eCheck is the desired form of payment. eChecks make recurring billing, autopay, and auto-renewal simple and hassle-free. Any type of business with continuity payments, whether it’s an online cheese-of-the-month club or a monthly gym membership, you would certainly do well with electronic check payments. Retention is also better. Just think of how many times you replaced your credit or debit card, now think of how many times you replaced your checking account. Do you see where I’m going with this?
Internet and eCommerce Businesses
You can have a customer buy your product once, and keep accumulating payments from them every month. In some cases for many years. It’s one of the most effective business models available, and it’s been blowing up online over the past few years.
High Ticket Merchants
By eliminating the intermediaries associated with credit card processing, your business will save money by preventing interchange costs. If your company routinely does high ticket transactions, you can save a substantial amount of cash by accepting electronic checks.
How Can My Business Start Accepting eChecks
In order to approve eChecks you need to work with a payment processor that provides it. The type of hardware and software required depends on your type of business.
For instance, if you intend to accept eChecks at the point of sale, they will certainly require a check scanner. If you intend to accept eChecks online, you will require shopping cart integration.
Is it time to incorporate eChecks into your business repayment choices?
The more payment methods you, the more revenue your business will generate. By approving eChecks, your company will increase its earnings possibility.
To learn more about eCheck, Call FintechMerchantAccounts today at (617) 918-7235. We can help you decide if it’s the right time for your business to use this payment method. If you want us to email you a full summary and access to a demo account click HERE.
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