Out of the many ways to accept payment online, a high risk echeck 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 echeck payments from your customers.
Echecks 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.
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.
The most common industries are subscription businesses, online businesses, and high-ticket item shops.
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 echeck.
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.
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. Echecks give you the advantage because you reduce the chances for fraud or missed payments on expensive purchases.