Out of the many ways to accept payment online, a high risk e-check merchant account is the best way to secure funds in unique industries. If you’re having trouble finding credit card processing solutions due to the nature of your business, then a good alternative is to accept e-check payments from your customers.

Why E-check Payment Processing Is Better

E-checks are a form of payment that travels directly through accounts with existing money. Just like a real check, they draw customer payments from their checking account. Unlike credit card payments, this means the money is not loaned from a bank, it belongs to the customer. With this underlying difference, there are many benefits that arise in this type of transaction.

Benefits Of High Risk E-check Payments

• Lower Processing Fees – Credit card payments are managed through credit card companies like Visa, Master Card, and American Express. These companies have their own baseline fees associated with transactions. Even your merchant account provider has to pay these fees, and there is no way out of them. Luckily, when paying with an e-check you circumvent those companies and can save money on extra expenses.
• Reduced Chargebacks – Chargebacks are payment disputes made through customer banking channels. They are executed through card payment channels so e-checks are safe from them.
• Faster Payments – When you receive a real check, cash isn’t delivered instantly. It usually takes around 48 hours for the check to travel from one location to another. E-checks take some time to process, but can be as fast as 24 hours.
• Consistency – Many companies set up e-check payments so they can make steady monthly withdrawals. Landlords and subscription companies alike prefer this direct route of check-like payments to ensure their funds are coming in steadily.

How Do E-check Payments Work?

Initially, a company needs to collect banking and routing information from a customer’s bank account. On a paper check, these numbers are located at the bottom and are available to see to anyone receiving the physical item. Nowadays, these numbers can easily be viewed online through their banking application .

What’s The Difference Between an E-check, EFT, ACH, and Wire Transfer?

• E-check – Works like a standard check by drawing money from a bank account using routing and account number.
• EFT – Stands for Electronic Funds Transaction. This term used to cover many types of electronic transfers including e-check, credit card, and direct deposit.
• ACH – Stands for Automated Clearing House . They are the entity that regulates bank-to-bank payments. The payment itself is different from an e-check because it uses batch processing to aggregate transactions.
• Wire Transfer – These typically charge a fee and are used for international transactions or large payments.

What High Risk Industries Use E-check?

The most common industries are subscription businesses, online businesses, and high-ticket item shops.

Subscription Businesses

A subscription payment model is not just for subscription boxes. Monthly payments are made for software, rent, fitness, and legal services. Anyone who bills on a monthly basis would see increased benefits from transferring their customers from credit cards to e-check.

Ecommerce Shops

Ecommerce makes up around 15% of all purchased transactions, and many people want different options to make these payments. Online stores should cater to the increasing market and offer payment options outside of credit cards. In Europe for example, over a quarter of payments are bank-to-bank so if you’re selling to an international audience, be sure to have options that are familiar and trusted.

High Ticket Items

Jewelry, Numismatic, and antique paraphernalia can sell at very high prices. The higher the value of the item you’re selling the more your risk increases. E-checks give you the advantage because you reduce the chances for fraud or missed payments on expensive purchases.