Merchant service providers allow businesses to accept checks by phone, as another convenient payment option to offer their customers. To get started, all you need to take advantage of these services is a merchant account. Find out if check by phone services are right for your business.
Understanding Check by Phone Services
Taking a check by phone works very similar to accepting a paper check. With electronic check processing services, a merchant provides software that provides electronic access to the Automated Clearing House (ACH) network, which is the electronic network that U.S. financial institutions use to process credit and debit transactions. It is governed by the U.S. Federal Reserve and NACHA (the National Automated Clearing House Association). Via merchant accounts, checks are processed as an electronic fund transfer (EFT). Bank information is collected over the phone and then, it is inputted into a computer. From there, the information is sent to the ACH, which then electronically deposits fund into a merchant account. This is one of the most secure, cost-efficient ways for customers to make a payment for good and services because the funds are transferred directly from a bank account. Funds for paper checks are deposited in the business account when the check clears, usually within two to three days. EFT transactions are processed each night and can take from one to three days to arrive in your account.
Benefits of Checks By Phone
If you are a business that has lower monthly sales volumes, you are likely to save money if you accept checks by phone. Credit card interchange fees are much higher than the smaller flat fees charged for checks by phone.
Costs for Check by Phone Services
The number of transactions processed impacts the price a business pays. In most cases, merchants pay monthly fees and a fee for each transaction.
Drawbacks of Accepting Checks by Phone
Unlike debit and credit card transactions, which clear almost instantly, check transactions take longer to process. Checks can take until the next day to clear. Additionally, merchants must be approved in advance for the amount of money that will funnel through their accounts in an effort to prevent fraud. However, if you do so much business that you reach that limit, you will be unable to process checks. This is why knowing transaction volumes ahead of time is so important.
The Final Say
Now that you know the pros and cons of check by phone services, you can decide whether it is right for your business. Depending on your business’ goals and preferences, accepting checks by phone may be another payment option that can be used in addition to accepting debit and credit cards. It is faster, convenient, and efficient way to get paid.
When it’s time to learn more about check by phone services, turn to a merchant account service provider that has experience to thoroughly discuss this payment solution. To begin accepting checks by phone, businesses to need to set up merchant accounts.
When it’s time to apply for a merchant account, contact eMerchantBroker.com (EMB). EMB specializes in offering payment solutions to all type of merchants, including high-risk businesses. EMB’s online merchant account process is simple and quick. Apply today so you can reap all the benefits of check by phone services.