Advantages Of Using A Digital Check For Business

Mar 25, 2022

Online and mobile payments are a growing trend that will only continue to increase as customers get more comfortable with technology. Increasingly, customers are relying on their smartphones to pay their bills, pay for services, and pay for products. One of the biggest reasons is convenience.

According to eMarketer, it is projected that mobile payments will increase to $130.3 billion in 2020. What is fueling this growth is consumer acceptance, the “continued growth of digital natives” (or those who have grown up with technology), and technology infrastructure. 

Another digital payment method that is also gaining momentum is the e-Check. An e-Check or digital check is a digital version of a paper check but without all the inconveniences and costs associated with a traditional paper check. Let’s take a look at why incorporating this digital payment method could benefit your business. 

The Advantages Of Accepting Digital Checks

More businesses are seeing the benefits of incorporating digital checks as part of their payment method offerings. More payment offerings mean widening their customer base, encouraging customer loyalty. This is another great alternative for customers that would rather not use their credit or debit cards online. Here are more benefits to accepting digital checks for e-Commerce businesses:

1. Time Saver

Paper checks require a lot of hands-on processes. They take time to clear the bank. It takes time to track them. Of course, it requires time to get the check to the bank in the first place. Then there’s the time and expense it takes to order and pay for more checks when you run out. 

On the contrary, digital checks don’t require tracking. You only need to verify that the recipient’s account details are correct. That is it. Plus, digital checks are instantaneous. You don’t need to go to the bank or order more checks. 

2. More Secure

The money is secured digitally since digital checks utilize the same security system as direct deposits and payments. Digital checks are also secured by encryption that tracks the amount of money in the check and the account number. 

This guarantees that the check is accurate. You also have the option of requesting your own, secure link, allowing you to make and receive payments efficiently. 

3. Money Saver

When running a business, having a consistent cash flow is essential. By using e-Checks, you are allowing payments to process faster than paper checks. This ensures you receive your payments quickly. 

Plus, you don’t have to worry about paying fees for bounced checks. If the customer does not have sufficient funds in their account, the bank simply doesn’t process the transaction. Also, as mentioned before, you no longer have to waste money buying paper checks. 

4. Use Them Anywhere

Customers want a quick and efficient way to pay at checkout. Digital checks certainly deliver on this. Since checks are universal, there is more familiarity with their use by customers. 

The lower the barriers to making payments, the more sales a merchant makes. If you operate an online store or any international business, you can make and receive digital checks from around the world.  

5. Compatible With Most Accounting Software

Digital checks also have the advantage of integrating seamlessly with just about any accounting software. Accounting software transactions normally do not require a double entry. 

Therefore, you can continue writing checks with your current accounting software without requiring extra software updates. 

Digital Checks Are Beneficial For Your Business

As our world becomes more digital with the current advancements in technology, it only makes sense that businesses get on board with offering more digital ways to pay. The benefits of accepting digital checks can not be denied. 

By adopting another payment method such as digital checks in our payment method toolbox, we are gaining the opportunity to save money, time, and most importantly, win the loyalty of our customers. 

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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 on 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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