Why High-Risk Industries Should Accept ACH and E-Check

What Is high-risk ACH processing? What Is eCheck? What’s the Distinction Between ACH and eCheck Processing?
ACH (Automated Clearing House) is a network developed by United States banks. In other words, the network makes it possible for them to transfer funds to each other. A high-risk ACH account can be provided to you by your payment processor. That is of course if you are a merchant that is classified as high risk.

Similarly, An eCheck (or electronic check) is a digital counterpart of a paper check used to pay online. Anybody with a checking account can pay by eCheck.  If your business offers e-check as a payment option it is pretty straightforward. Your client just fills in their routing and account number in a safe and secure online site. From there, your processor verifies the information in real-time. Then they draft a check and overnights it to your financial institution. And your funds are posted the next day.

However, eCheck is a little different than ACH, as the funds are not directly wired between accounts. Put another way, ACH describes the process to transfer money using then bank rails. An eCheck is an abbreviation of the term “electronic check,” and is a payment option. 

What Are The Advantages Of High-Risk ACH Payment Processing?
You can use ACH payments to automatically debit money from your client’s bank. Therefore ACH is a great solution if you have a recurring billing or membership-based business model.  Additionally, ACH is much cheaper than credit card processing. This can save your business a lot of money.

What Are The Benefits For A High-Risk Business?

Like ACH, eCheck is popular due to the fact that eCheck settlements are cheaper than credit cards. Unlike ACH, eCheck account approval is a lot easier. For instance, underwriting is very liberal which is important if you are a merchant that is considered “high risk”.

If the above describes your business, getting a high-risk eCheck account is an attractive solution for many reasons. 

Reduced cost: Due to the fact that eCheck payments are a bank 2 bank solution. With a high-risk check processing account you will avoid the high rates and fees that are associated with a high-risk credit card processor.

Fewer purchase restrictions: For example, as a high-risk business you often have a variety of constraints put on your credit card merchant account. These consist of monthly volume limits and purchase size limits on your account. However, when you accept eChecks monthly volume and high ticket size are not an issue. This allows you to grow your business dramatically. And run your company as you please.

Higher possibility of approval: Above all, this is the biggest advantage. Getting approved to accept credit cards can be a huge hurdle to overcome. For instance, If your business type is on the prohibited list, or in addition placed on the TMF or MATCH list, it is nearly impossible. This is when you need to be more innovative and provide an alternative payment option. Having eCheck or ACH puts you in a position to accept payments electronically. You can take your customer’s payment over the phone, online, or by email and text message. 

High-Risk ACH Processing Companies

In conclusion, FintechMerchantAccounts specializes in high-risk payment processing. We are a leading provider for both ACH processing and e-check. Some of our more popular merchants for this solution are listed below:

We want to hear from You! You can call us at (617) 918-7235. If you want us to email you more information just click HERE and we will get it out. 


You May Also Like The Following Articles.

High Risk Merchant Accounts and Payment Gateways

What is the TMF and MATCH List, and How to Get Removed From It

What Is E-Check?

How Does ACH Payment Processing Work?

How to Accept ACH Payments

Edward Corona is the Founder and CEO of FintechMerchantAccounts