The Benefits Of Electronic Check Payment Processing

Apr 20, 2016

Modern technology enables people to enjoy fast and easy payment transactions all around the globe. Huge advances in the world of payment technology have turned paper checks into electronic transfers (debit), which are also known as electronic checks or eChecks. Electronic check processing is an essential part of any modern business.

Modern eCheck Payment Processing. How Does It Work?

eCheck payment processing can be characterized as a simplified check cashing. This is a hassle-free and low-cost method of getting paid quicker. This is an extremely important payment service for merchants. It helps them meet all their payment processing needs without challenges.

The electronic check processing begins as soon as a customer writes a paper check at the POS or point of sale. The clerk uses an imager or reader to run the check through it. The reader captures the required data such as the routing number (number identifying the financial institution), check and account numbers. The clerk also enters other merchant-related data to finish the one-time electronic payment processing from the target account.

The check gets verified or guaranteed by the provider, based on the merchant agreement with the target payment processor. The check writer signs the receipt generated and printed. Then, the check is voided and returned back. This way, the transaction appears on the customer’s bank statement as a debit and not a check.

The merchant uploads the captured check data to his/her payment provider for processing. The proceeds are deposited into the merchant account within 1-2 business days. So, the eCheck process is like a check mailed in payment of a bill. Only, the merchant must keep the check after it is voided.

eCheck Payment Processing Benefits

Merchants can benefit from electronic check processing in a number of ways. Electronic check processing with (EMB) is extremely easy and effective. EMB offers comprehensive and premium eCheck payment processing solutions to increase revenue, reduce chargebacks and customer disputes. EMB is an ideal choice for high-risk merchants looking for affordable check payment processing.

Thanks to eCheck processing, merchants or service providers can now electronically transfer funds from a client’s or customer’s bank account directly into their bank account, using the Federal Reserve Bank’s ACH (Automated Clearing House) system.

Merchants aren’t obliged to take checks to the bank. They can also enjoy speedy deposits. With eCheck processing, there aren’t any check deposit slips to complete. Beyond that, it minimizes the risk of checks being stolen or lost before they are deposited.

If you’re a merchant working out of more than one location, you can have checks converted at each location and funds centralized in one main account. Guarantee programs facilitate and accelerate the collection process through a rapid discovery of insufficient funds (NSF) checks and other returned items. There are payment providers that make account activity available online, which allows keeping records easily.

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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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