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High Risk ACH

High Risk ACH

High risk ACH payment processing is the most viable option for certain industries that cannot standard merchant accounts. The reason ACH is so beneficial is because it does not have to follow the rulebook the major card brands like Visa and Mastercard impose. As a result, high risk merchants can sell the products they want and accept payments from customers directly without worrying about getting dropped or penalized.

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ACH For High Risk Businesses

Automated Clearing House (ACH) transactions are gaining popularity as a reliable and efficient way to transfer funds electronically especially for high risk businesses. The reason being is that ACH is considered more of a stand-alone option that some businesses use for every transaction. Better yet, it enables businesses to receive payments from customers and make payments to vendors and suppliers conveniently and at lower cost. 


For high-risk industries, navigating the ACH payment landscape can be trickier due to the increased risk of chargebacks and fraud that is associated with certain verticals. Nonetheless, companies like Zen Payments provide clear paths forward to getting ACH solutions. 


In this article, we delve into the world of ACH payment processing specifically for high risk industries, and shed light on how it can help mitigate risks, lower fees, and boost efficiency.

Understanding High Risk ACH Payment Processing

To begin, ACH stands for Automated Clearing House. They are an organization that oversees digital transactions and bank transfers, and have been around since 1974. Colloquially, we use ACH to refer to the type of transaction that takes place between bank accounts.


Now what does “high risk” mean exactly? This status is the bank’s perspective on certain types of business types. For them it means safeguarding against potential risks. These measures may include enhanced fraud detection tools, identity verification, and thorough underwriting to assess the risk associated with each transaction.


Combined, high risk ACH payment processing providers work closely with businesses in high-risk industries to understand their unique needs that standard banks don’t board.

Benefits Of ACH Payment Processing

  • Expanded Payment Options: Adopting ACH as a payment alternative allows businesses in high-risk industries to offer their customers a wider range of options at checkout. They provide flexibility not only on the solutions side, but also for customers who want to pay more directly and avoid credit card transactions. Moreover, it can help businesses attract and retain customers and is an excellent tool for subscription billing or continuity billing payment models.
  • Lower Processing Fees: Another significant benefit of ACH payments is the potential for lower processing fees compared to credit cards. Traditional credit card processing fees include costs from Visa, Mastercard, and AMEX. On the other hand, ACH transactions eliminate those and lower the premium associated with high risk credit card fees. All-in-all, it can help businesses save on processing costs and improve your bottom line.
  • Reduced Chargebacks and Fraud: High risk payment providers typically employ advanced fraud detection tools and verification processes to minimize the risk of chargebacks and fraud. This can help businesses in high-risk industries protect themselves from potential financial losses associated with chargebacks and fraudulent transactions, which can negatively impact their revenue and reputation.
  • Streamlined Operations: Lastly, ACH is a direct connection from your bank to your customer’s. As a result, it streamlines business operations by automating payment processes and reducing the need for manual handling of checks or credit card payments. If you’re currently accepting physical checks, then switching over to the digital echeck version with ACH is a substantial way to save on administrative time drain.

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