Accepting Echecks Online: 5 Reasons They’re the Best E-Payment Method
The move away from cash and paper checks had been trending for a while. But the COVID-19 pandemic has accelerated the transition to a cashless economy. More than 78 percent of Americans used digital payment methods to conduct financial transactions in 2020. The rise of the digital economy will make physical payments more obsolete post-pandemic.
Businesses must adopt the best digital payment solutions to thrive in a post-pandemic world. From wire transfers to credit cards and mobile payments, how can you determine which online payment technology is best to help you grow? Below, SeamlessChex will discuss five reasons why accepting eChecks online is the best method of electronic payment:
Lowest Processing Fees
Electronic payments offer more convenience, but their steep processing costs can decrease business profitability. Banks and credit card companies charge merchants hefty fees for accepting online payments. Merchants are charged up to 3.50% of the total transaction value for accepting an online credit card payment, and receiving a bank wire transfer can cost them $15.00.
Seamless Chex electronic checks offer the convenience of popular online payment methods without exorbitant processing costs. When you accept eChecks online, you will pay an average of 1% to receive a payment. Echecks are processed using Check 21 instead of Fedwire or the credit card networks, making it the most cost-effective solution for receiving online payments.
No Payment Holds
Along with charging merchants outrageous fees for accepting online payments, credit card processors also withhold a portion of your daily transactions as insurance against future non-payment. This payment hold ⏤ known as account reserves ⏤ keeps up to 10 percent of your daily revenue for as long as 180 days to pay for potential chargebacks.
Digital check processors do not require merchants to maintain an account reserve for accepting eChecks online. When you receive an eCheck payment, all the funds will be deposited directly into your bank account and available for use within one business day. Electronic checks eliminate holds on your revenue, freeing up more cash to help you run a successful business.
Many legal US businesses can’t process online credit card payments because they’re regarded as high-risk merchants. Traditional banks and credit card processors refuse to work with high-risk businesses to avoid financial liabilities. These merchants often turn to high-risk processors and pay 3-10 times more in fees so they can accept online credit card payments.
Digital checks offer unparalleled accessibility, allowing any legal US business to accept eChecks online. Whether you’re a CBD startup or an established travel and booking agency, you can receive online payments immediately after signing up for Seamless Chex. Digital check fees don’t discriminate based on industry type. Most businesses will pay the standard 1% fee for accepting an eCheck.
Enhanced Payment Security
Credit card companies and digital wallet technologies are struggling to control online payment fraud. American businesses and consumers lost an estimated $11 billion to online credit card fraud in 2020. Mobile payment technologies are exacerbating the situation. A 2020 Ravelin survey found that mobile payment platforms were increasing the incidence of friendly fraud.
Electronic checks provide a more secure platform for accepting online payments. Using advanced account ownership verification tools and signature capture technology, Seamless Chex helps merchants reduce the incidence of identity theft and chargeback fraud. Accepting eChecks online will protect your merchant account and help you minimize financial loss.
Banks and credit card processors regard your transactions as both profit and liability. To maximize profits and reduce financial risk, credit card processors place a limit on the value of each transaction and your monthly sales volume. If transaction value or sales volume exceeds the imposed limit, your merchant account can be frozen or terminated for violation of standards.
Echeck processors like Seamless Chex, on the other hand, do not impose any transaction limits on your business. When you accept eChecks online, you have no transaction or monthly limits. Seamless Chex offers multiple subscription plans for diverse business needs. You can upgrade your verification plan at any time to add increased security to reduce chargebacks or returns.
Sign Up for the Best E-Payment Solution
Electronic checks are the most secure, affordable, and accessible online payment solution currently available. With no transaction limits, bank balance confirmation, next-day deposits, and lower processing fees, digital checks help you make and save more money to propel business growth. Sign up now for Seamless Chex to take advantage of the best online payment technology.