What is High-Risk eCheck Processing for Business?
Being classified as “high-risk” for eCheck processing can be a significant financial burden for any business. Businesses require eCommerce options with services that work for eCheck processing, even when those businesses are in high-risk industries. Conventional credit card swipe machines are becoming a thing of the past in favor of internet merchant accounts, which modern businesses use to conduct transactions with their customers through diverse payment methods. Recognizing the advantage of each of these payment methods is a crucial strategy for any business.
Because internet merchant accounts are so valuable in processing customers’ debit card, credit card, ACH, and eCheck payments, paying higher transaction rates can financially set a business back. This effect will only intensify as customers increasingly come to expect businesses to be able to accept payment through an internet merchant account.
The Purpose of Internet Merchant Accounts
An internet merchant account provider gives a company the ability to accept their customers’ eCommerce payments. This could mean debit cards and credit cards on an online store or dedicated payment page, virtual currency, or eChecks.
Account providers offer swipe machines or processing software to get businesses up and running with their eCommerce payments. Being at high risk for eCheck processing can alter the process, however.
What does high risk mean?
“High risk” refers to how a payment processor thinks of a merchant in terms of the financial risk to them. There are a few things that can clue a business in on how risky a processor thinks they are.
The biggest factor is usually the likelihood that transactions in that business’s industry, in general, will be disputed or result in chargebacks. This is common in industries such as gambling and pharmaceuticals, as well as timeshares.
Any industry with a high rate of disputes or returns may be considered high-risk for eCheck processing. While consolidating financial records could potentially mitigate the risk, the best option for any business is to find an internet merchant account provider that is willing to work with businesses that are high risk for eCheck processing.
When the right merchant account provider is selected, any business can accept eChecks regardless of whether they are classified as high-risk or not.
Certain industries are classified as high-risk for eCheck processing. Because internet merchant accounts are more important now than ever, it’s important for businesses deemed high risk to find companies that offer them rates and services no matter the risk.
Visit Charge.com or call (888) 924-2743 to search for internet merchant account products and services for businesses, regardless of any business’s risk level.