One of the best ways to ensure your business maintains an advantage over its competitors is to offer as many payment processing options as possible, including echeck payments. However, this is not always an easy task for some merchants. Those considered high risk struggle to secure payment processing in general; banks and traditional financial institutions are simply too wary of the risks involved in partnering with high risk industries.
So, how does a high risk merchant secure services like eCheck payments? Is it possible to find a reputable, secure provider willing to work with them? Better yet, what is a high risk industry and why do high risk merchants prefer eChecks? The following information should shed some light on everything you need to know to start accepting eChecks and find the right processor for your business.
What is a High Risk Industry?
There are many reasons why a business might be categorized as being high risk. Typically, it is because the company either operates within a high risk industry or there is a risk of financial failure. Startups that have poor or no credit history often fall within this category, and high amounts of chargebacks are another incredibly common reason. Some examples of high risk industries include:
- Pawn Shops
- Subscription Boxes
- Hotel & Motel
- Auto Warranties
Why do High Risk Merchants Like Offering eChecks?
According to information from the FDIC, just 7 percent of Americans do not have a bank account – the mass majority does have access. As e-commerce continues to grow rapidly (especially this year due to the COVID-19 crisis and the massive jump in online sales as a direct result), offering as many payment processing options as possible is incredibly important as an e-commerce merchant. EChecks presents a great opportunity to boost sales and give your business a competitive advantage.
Where Can You Find the Best High Risk Merchant Processor?
As a high risk business, it is important to make sure you choose the right provider. Your best option is going to be partnering with an eCheck processor that specializes in working with high risk industries, like EMB. EMB is committed to helping you enjoy quick and efficient payment processing. With EMB, you can start accepting payments immediately and deposit automatically for a streamlined payment process.