ACH For Payday Loan Merchants

Apr 14, 2016

Leading providers of technology-enabled payment processing services regularly deliver information on modern payment technologies. These companies’ blogs feature articles about ACH processing where you can find answers to your questions and valuable recommendations concerning your business.

What Is ACH Processing?

Automated Clearing House (ACH) is a nationwide electronic network. It enables businesses to send and receive financial payments. ACH is under the regulation of the Federal Reserve. It is operated by the Electronic Payments Network and the National Automated Clearing House Association (NACHA).

ACH aims to allow merchants throughout the country to perform batch processing on large volumes of credit, debit, and other business transactions. These include direct deposit payroll, customer insurance payments, mortgage loan repayments, vendor and supplier payments, and more. This results in lower processing fees. Also, ACH helps keep the use of paper to a minimum.

Accepting ACH payments can be compared to credit cards. Only, in the former case, bank-routing codes are used instead of traditional 16-digit credit card numbers.

ACH Loans for Your Business

Business owners’ goal is to find convenient, easy-to-use and time-saving methods to process customer payments. Having established electronic payment options for their customers through debit and credit card payments, business owners should also consider accepting ACH payments.

Companies choose the ACH network both for bill payments, direct deposits, and eChecks. The ACH network, like all payment technologies, is associated with certain fraud risks. However, thanks to several important features, ACH provides security and protection to users.

Merchants interested in ACH payment processing should consider turning to emerchantbroker.com. EMB, # 1 high-risk payment processor in the US, offers ACH for payday loan merchants. EMB delivers an Automated Clearing House (ACH) to high-risk credit card holders and Check Clearing for the 21st Century (Check 21) for check writers.

On ACH Payments

Consumers pay almost 500 million bills using the Automated Clearing House network each month. In 2013, $38.7 trillion were transferred by businesses and customers across 22 billion separate ACH transactions.

ACH payments are on the rise. Statistics shows check payments at the point of purchase decreased 12% in the first quarter of 2014. eCheck and mobile ACH payments increased 10% in the first quarter of 2014.

In the US, the federal government will no longer provide Social Security payments through the postal system. The UK has already started bringing paper checks to an end.

Thanks to reliability, speed, and convenience, ACH payments have become the ideal choice for many merchants and customers all over the world.

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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