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February 5th, 2020

Did You Know? eChecks Lower The Payment Processing Fees

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Business owners of the present era have more to enjoy when it comes to payment options. Credit cards, debit cards, cash payment, bitcoins and checks have simplified the payment processing game. But do you know that among all the payment options, who’s the king? Nope? Credit cards! According to Federal Reserve Payment Study in 2016, more than two-third of non-cash payments are done through credit cards.

Anything else? Well, ACH payments saw boom at a rate of 4.9% (annually) from 2012-2015. Thinking what is making ACH payments strive this well? Among the best reasons counts their ability to bring down the payment processing costs.

Difference Between Debit & Credit Card Transactions

Processing an eCheck means undergoing the ACH network and bypassing the credit card networks. This makes one free from the job of paying assessment and interchange fees. Despite drawing funds from a legal bank account, it uses the network which is same for the credit cards. Here, paying hefty assessment and interchange fees is obvious.

Talking about eChecks, they involve negligible fixed fee and zero percent fee. Overall, the total amount constitutes of a few hundred bucks, something not a burden on the pocket. Cherry on the cake is no need of paying the deposit fees. Last but not the least, it has significantly low manpower. As per QuickBooks, processing costs cut down by 60% with eChecks.

Cost For eCheck Processing

Processing company is the deciding factor when it comes to the cost of processing an eCheck. Putting it straight, most of the companies have a flat rate which varies between 0-1 percent. Usually, the charged fee is anywhere between $0.25-$1.50. Throwing light on the businesses carrying out large transactions, in order to get the cheaper option, they must incline towards per-transaction fee. Also, there are companies that charge a fixed monthly fee. For this reason, it’s highly crucial to opt for a company that doesn’t bother with any form of extra fees.

Benefits Of eChecks

Apart from saving funds, electronic checks assure easy and quick availability of funds. Moreover, same-day AHC is also possible these days. Moving on to the other benefits, they boost the sales and reduce the possibilities of frauds and errors, thanks to their dependency on latest security features like encryption, duplicate detection, public key cryptography and authentication via digital signatures.

How To Begin With eChecks?

  • Associate with a trustworthy company no matter how much low rate other companies promise.
  • Make sure to keep your customers notified about any change that happens. A takeaway copy and a contact number for details are two essentials they must be provided with.
  • To streamline processes such as exporting data of customer, it is highly important to find a processor that can be integrated with the current business software.
  • Keep along information like Federal Tax ID, estimated processing volume and total years in business.
  • Make sure having either a website payment system, check scanner or virtual terminal, in case you process checking account payments through ACH.

Though this information has covered a lot about eChecks, if you have any questions in mind or want more knowledge, we would love to help you. Get in touch with us anytime you feel convenient and we will provide the best support.

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