High Risk CC Processor for High Risk Echeck, Check21, ACH Electronic Check Processing
An Automated Clearance House Will Pump Up The Security In Spreading Your Wings
What is your business type? How do you maintain your capital flow and operations? Be it domestic or commercial, financial transactions have largely gone digital and when money flows through hidden, third party virtual terminals, intelligent selection of the merchant service provider and secured maintenance hold the key to the growth of your business.
Echeck and Automated Clearing House (ACH) payments make up a huge proportion of the electronic payments in the modern financial world. Online/E-commerce and brick and mortar commercial enterprises have immensely benefitted from ACH network in which capital gets routed to the destination account from the source account through a service provider.
Capsuling the benefits of ACH
ACH gives a two-sided advantage, both to the customers and the merchants in terms of cost-reduction, real-time automation, convenience, record-keeping, and expansion support. Shopping through ACH gateway is a way lot easier for the customers than withdrawing money from ATM and paying in cash every time, even if they are not aware of the technical know-how of the former.
And for the merchants, this is indeed a paradise in business.
No quick money counting, no balance issues, no security concerns, minimum financial management, reduced capital expenditure on staff and resources and easy transfer of funds within the supply chain and operations.
The business-saving capability of ACH is an unwritten but understandable one.
Your business is in debt or your startup needs funding. In both the cases, the paperwork required is exhaustive and the credits are complex if maintained manually. A small error can lead to a mammoth loss in credibility and opportunity. Every penny in and out counts and keeping track of dates and data is gruesome, especially when you are yet to find the foothold.
Think in terms of the resources required.
As a company head, you have to employ a mail watcher or communicator to manage the intimations regarding payments, billing, and supply. A full-time accounting expert is a must. An efficient record-keeping person helps in eliminating file management issues and chargebacks. The cost of plastic and stationary items can often become heavy for those with restricted initial capital. For the business in debt, you will be confused on where to channel the hard cash in your hand or which EMI to be paid off first.
Boost your fashion sales
Let us relate the power of ACH in terms of a real-life business example.
You are in the process of flagging off a fashion store, maybe in a single location or maybe in multiple locations. Once the initial market research and capital raising have been accomplished, product procurement and development become the next task. In the case of apparels, to appeal to a maximum segment of customers, your store should be diverse in the collection. For attaining diversity, your supply chain should be diverse. Once the initial business gets running, you have to sustain the inflow and outflow of functioning.
Regular and timely payments of the supply chain network, staff and efficient channeling of the income turnover have to be fast, safe and accurate. Automation improves upon these necessary qualities in the industry. Nothing will help you more here than a secured and reliable ACH system. Electronic clearance is important when:
Your store gets the raw materials from suppliers in different locations.
Cutting off on human errors and cost finds a place in the company rules.
Saving on time, effort and money get the obvious priority.
Avoiding complication with the tax department eliminates any scar formation in your business.
The payment schedules will be different for each supplier and can even vary from time to time. Keeping track of everything, contacting the bank, preparing demand drafts or check processing and maintaining records of all transactions on paper are extremely cumbersome. In the same way, which will be easier for you: giving checks to each of your employees personally or crediting into their bank account through standing instruction with one-time bulk posting? Your customer base will be vast and you plan to expand the territory of your fashion store. In this fast technological era, you will not conquer any summit by physically visiting all of the locations for the collection of sales and securely transferring them to proposed accounts.
What about venturing into the export sector? Your fashion signature may be in demand within your nationalities settled abroad or among the foreign natives. In every step of the progress, electronic fund transfer will ensure that the border crossing of your business remains as smooth as possible. With the same day payment facility, you may not face the situation of replying payment regrets or payment processing to suppliers or credit agencies.
In the normal route of setting up a merchant account, you can comfortably apply with a domestic acquirer, as the textile market is not generally a high-risk one. Domestic merchant acquirers charge lesser credit card processing fees and process your application in a couple of days usually. You need not be bothered about a low par exchange rate also.
However, still, there are certain situations where you have to apply for an offshore merchant account. An obvious reason may be that your establishment comes in the high-risk category. The legislation where you are planning to expand into will be having a different set of rules to which your current acquirer may not be complying. You have to proceed here by keeping in mind that the ACH Processing/Check Processing, credit card processing, and exchange rates may be high and the ‘paper-heavy’ application will be moving through a longer route.
Notes to remember
Before you sail through the boat of ACH, the decision of whom to chose and how to chose the merchant service provider can be fate-determining. The bank with which your business holds the account gets the first vote. Your fundraisers, credit-card banks, and financial partners may also come in the queue. Confirm where your business comes High Risk vs Low-Risk classification. There are dedicated merchant account options for the high-risk business.
Based on the frequency of the cash flow in your business, the payee relation, and number, destination location etc, you can opt for free iPhone/Droid Mobile Apps, third party service providers or large financial firms. Some may provide the account for free or with no application fees, some with a nominal fee and some with a comparatively higher processing fee. The rates at which bigger players lend out the service may depend on your category in the High Risk vs Low-Risk classification.
Security in third-party transfers runs your startup/business. The cash and the personal data should not be encrypted under any condition. A credible business agreement has to be furnished from both the sides. Screening the fund sources is of particular importance when the business is inter-territorial.
How will you determine how secured the ACH provider is? Like every service sector, here also we have national and international standard accreditation certificates. Payment Card Industry Data Security Standard (PCI DSS) compliance is a mark of high standard and reliability. Based on the level of your merchant account, cash credits, Visa/Mastercard/Discover/Amex ratings etc, the core rules and eligibility standards vary.
ACH gives you the facility of setting up a standing instruction for payment through the virtual terminal or on-demand. This means, you may be probably sleeping peacefully on the due date of a supplier payment and the fund will be automatically credited to the destination account at the right time in the most secure way.