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ACH Processing
July 4th, 2019

Debunking The ACH Processing Myths Prevailing Among High Risk Merchants

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No matter it is a startup business or a well-established one, when asked from high-risk merchants whether they would be interested in accepting e-check payments or ACH processing solution, they refuse. Are you also one of them?

Reason of refute is a matter of convention for rest of their fraternity. Most of the businesses are open for dealing in electronic checks under only two circumstances:

i) When there is delay in setting up of merchant account for their business. It takes longer to seek approval of banks and payment processors when it comes to high risk businesses.

ii) There are special contingencies when high risk merchants are denied from using merchant account services such as bad processing history or their name in the MATCH list.

Most of the merchants concur to carry out financial transactions through ACH processing or eChecks when they have no other alternative at their disposal. Industry experts believe that ACH processing solutions make competent alternative of credit card processing services. eChecks are not only safe to use but they are fast and pocket-friendly too.

Why Considering ACH Solutions As Only Second Choice Is Not Justified?

Most of the high-risk merchants overlook the worth of electronic checks for carrying out monetary transactions. They bring them into use or count on them only for the special situations when regular credit card processing is not working for them. In other words, electronic checks mostly play role of a side hero.

It is peak time they are counted on for taking the full-fledged responsibility of executing the role of lead hero of a business’s payment processing story.

A huge majority of business owners do not look upon ACH processing solutions as robust as many other contemporary solutions. They don’t find these solutions to be effective rather they call them irrelevant for the overcrowded payments market. But insiders have an altogether different notion, they say check processing was never more relevant than this. The most recent development in the history of check processing was a revolutionary step in itself. Around 4 years ago, NACHA, the governing body of the Automated Clearing House, took a path breaking step. It was announced that process of converting check clearance will not be a three days affair. It will rather be cleared out on the very same day.

After this major amendment, merchants are not left with any real reasons to resist use of digital versions of checks. This underrated payments solution is longing for long period to get explored by major number of merchants. Wake up before you lost this great opportunity to your business rivals.

List Of Industries For Which ACH And Check Processing Is Best Suitable

Recurring billing/Subscriptions: Many merchants run their business from rented offices. They being super busy with their errands skip on paying the rents on time. Getting reminders for monthly rent may feel embarrassing to some. Setting up the ACH solution, they can put a full stop to repetitive mistakes. On a set date the rent amount would get deducted and transferred to the landowner automatically. It is a stellar payment solution for any business that has a monthly subscription to a health club, newspaper, supplements etc.

Debt collection: Are you tired of reminding your consumer for paying back the debts towards your business? Offer to collect debts via cheaper and recurring ACH installments.

Property management: If you are a property owner you have to listen to excuses of many tenants. It is best to have them fill an ACH form right at the time of signing the contract. Mutually agreed rent amounts will start getting deducted on a pre-decided due date.

Loans or lending services: Small lenders in US are gaining high popularity over banks in recent times. Even US office of the Comptroller of Currency was sighted urging the banks to start offering small investment loans. The stakeholders were made to do so because small lenders give fast approvals to their customers.

Waiting for a month bank can approve or deny the loan application. Whether you are small lending business or a bank itself, don’t let go your customers by making them wait. Instead provide them loans on small installments.

Is ACH Processing On Boon?

Continuing with the aforementioned case, extending the US Comptroller’s recommendation, the ACH industry would see more healthy competition between banks and lenders. This also means lower rates for borrowers and growth for the ACH processing industry in coming years.


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