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HIGH RISK CHECK PROCESSING
How to obtain a “High Risk Check
Processing” account is the question on
many people’s minds. To get it, you
should think out of the ACH box.
E – Checks are one of the very popular
alternatives of today that is widely
used by customers of all kinds. The
owners of “High Risk Businesses” will be
able to simply increase their sales by
providing this option to their
customers.
Previously, business owners depended on
the “ACH box” to process their high risk
checks. It was a slow but reliable
system that cleared such electronic
transactions, in batches. However, it
was never ever designed to process high
risk checks.
The network is bound by the operating
rules of the NACHA. These rules were
never friendly for the “High Risk
Merchants”. The rules are very complex,
long and extremely hard to digest.
The network was hardly used by any of
the companies other than insurance or
utility companies. Just to get a clear
understanding of the rules an expert had
to be hired. The bad news is these rules
have significantly tightened in the last
few years, which makes “High Risk Check
Processing” impossible using the “ACH
Network”.
The conventional and old businesses are
also facing difficulty to comply with
the present rules of NACHA. There are
also no “third party ACH processors”
because they all ran out of business,
recently.
However, if your business is not capable
of accepting payments through electronic
checks, then be ready to get stumped due
to the competition.
Now there is a new technology which is
developed to accept e - check payments.
This solution is free from the “ACH
network”. It has much better processing
methods which give you significant
benefits.
With this new solution, the e – check
transactions don’t have to pass through
the “ACH Network”, though it is still
cleared by the Federal Reserve. However,
you don’t have to wait up to 4 days for
the transaction to get cleared and seven
days for the transfer of funds.
Now, the checks are being cleared by a
bank – to – bank transfer. Due to the
absence of any middlemen, the checks are
cleared within 1 working day. The funds
are also credited to your business
account in the same day.
Since the checks are cleared much
faster, the NSF risk is decreased. Fraud
will be detected quickly. Charge backs
are reduced drastically. It saves you a
lot of money and stream lines your
business operations.
With this solution you are the owner of
the depository account. Therefore, you
have complete control of your funds and
a free flow of capital.
The additional advantage is that, there
are no reserves. Therefore, unlike the
ACH processor’s there is no hold back of
your funds. The old fashioned method
needed to have reserves as the “ACH
Processors” were middlemen and therefore
they had to keep a reserve to decrease
their risk. The reserve funds were
entirely lost when the processors either
got bankrupt or decided not to give it
back.
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