Why Checks Are Convenient For High-Risk Sellers

Speed is everything these days, and paper checks require manual data entry. Paper checks aren’t quick and have proved to be cumbersome. That’s why they cause delayed vendor payments. However, there’s one benefit with paper checks: they mitigate chargeback risks. This can’t be said even about cards and ACH (Automatic Clearing House). To know more about checks and high risk credit card processing, just read below.

 

Check and High Risk Credit Card Processing

A 2017 Federal Reserve Payments Study reveals that check payments have dropped 3% a year from 2012 to 2015. Let’s look at different payment options.

 

For example, ACH is fine for those whose chargebacks don’t go higher than 0.5% and returns 15%. This is required by NACHA, the governing organization for the ACH network.

 

When it comes to electronic checks, high risk merchants think that eChecks are one of the easiest ways to boost profits. They can help you grow your sales up to 20% if you offer them to your customers.

 

How is this possible? Well, eChecks allow you to capture sales from customers who have no cards. Also, this refers to those who’re maxed out on cards, or like making payments via a direct debit from a bank account.

 

Did you know that over 30% of Americans have no credit cards? Over 90% of US households have bank accounts and can buy things using an eCheck. So, to get the best deal for your business, just search for a reputable payment processing company that can help you both with traditional and high risk credit card processing.

 

With a respectable payment processing firm, you can enjoy the best payment processing services and the highest level of chargeback protection. Work with a respectable credit card processor that can easily mitigate your exposure to chargeback risk since chargebacks can affect your business to a great extent.

 

Turn to an experienced and reliable processor that offers an iCheck account. Checks can be accepted at the Point of Sale (POS) when the consumer isn’t present: this is the future of check processing.

 

Credit Card Processing for High Risk Merchants: Chargebacks

Riskier businesses know what fraud and chargebacks mean for them. These include technical support, travel, medical marijuana, payday loan, adult, and other types of businesses.

 

According to a recent survey held by one of the leading payment processing companies, high risk merchants consider fraud and chargebacks as top concerns for their businesses. Card-not-present (CNP) fraud and chargeback management are cited by 61% of survey participants.

 

Thomas Skala, chief executive officer and president of a telecom and payments company, thinks that thanks to a reduced risk of chargebacks, checks become the best path for high risk sellers. Skala further notes that lack of chargeback risk can make checks “very beneficial.” In reality, checks are deprived of the problems that you can find with credit cards or ACH.

 

Based on a 2016 survey by the Association for Financial Professionals, the use of paper checks has increased by 1% since the 2013 levels of B2B payments.

 

Author Bio: Electronic payments expert Blair Thomas co-founded eMerchantBroker, serving both traditional and high-risk merchants by offering high risk credit card processing, and other merchant services. His passions include producing music and traveling.

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