How Electronic Check Processing Can Save Your Business Time and Money

Jun 21, 2016

Electronic check processing allows your business to convert paper checks received from customers into an electronic transfer (e-check). The funds are then taken from that customer’s account and moved into your business’ account. This transfer, which takes place via the Federal Reserve Bank’s Automated Clearing House (ACH) system, offers merchants a faster, hassle-free and less-expensive option.

How eCheck Processing Works

Electronic check processing begins when the customer writes a paper check at the point of sales (POS). The clerk uses an imager or reader and runs the check through, capturing the required data (routing number, check, accounting numbers, etc.).  The clerk will then enter other merchant-related data to finish the one-time electronic payment processing from that account. After which, the check is then verified and guaranteed by the provider.

Once the check writer has signed the receipt, the check is voided and returned. This allows for the transaction to appear on the customer’s bank statement as a debit – not a check. The check data is then processed by the merchant; the funds are deposited into the merchant account within 1-2 business days.

The benefits of electronic check processing for your business:

  • Quicker access to your money means improved cash flow
  • Your customers save both time and money as well
  • Increases the number of on-time collections
  • Completely eliminates the time spent on trips to the bank
  • Rids your business of manual reconciliation of insufficient funds

Tips to keep in mind when selecting an electronic check processing system:

  • The system you choose should not require purchasing expensive hardware or software upfront.
  • Make sure you receive a flat rate on electronic check transactions – never pay a percentage of the transaction to the processor.
  • Pick the system that makes sense financially for your business – research monthly fees, transaction fees and monthly minimums.
  • The system should securely store customer information, eliminating duplicate data entry.
  • The system should also enable you to process electronic checks and do direct-debit transactions.
  • Make sure the payment processing system uses powerful security and encryption tools – safety first!

Electronic check processing with EMerchantBroker.com (EMB) couldn’t be simpler or more effective. Our eCheck payment processing solutions will increase revenue, while also reducing chargebacks and customer disputes. For the high risk merchant in need of affordable, secure check payment processing, EMB is an ideal choice. To learn more, contact EMB’s team of experts.

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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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