Merchant Total Knowledge Base
Answers & Guides To Merchant FAQs
- What is an eCheck?
An eCheck is the electronic version of a paper check that is used to send a payment from one bank to another. eChecks are actually synonymous with ACH payments and EFT transfers which is the engine that drives the bank bill pay system that many users are familiar with.
- How difficult is it to get an eCheck account?
If you have a US company and US bank account, you can be set up usually within 4 business day after we have submitted your articles of incorporation, copy of CEO passport and six months of billing statements for approval. If you do not have a US account, you may be offered an aggregator account once we have submitted your articles of incorporation and copy of CEO passport. This will usually take 4 – 5 business days.
- What is an eCheck return?
The consumer’s bank can reject debit orcredit entries for a variety of reasons such as insufficient funds, accountclosed, authorization revoked, etc. Thisis referred to as a return. Merchantsare liable for the amount of all returned transactions plus associated returnfees.
- Can I dispute an eCheck return?
No, the ACH network has no disputeresolution process. The only way toresolve an issue with an eCheck is to work with your customer. This excludes the ability to redeposittransactions returned for insufficient funds (R01) or uncollected funds(R09). NACHA rules allow the resubmissionof these two additional times within 180 days of original entry. Should these be returned however a second orthird time, you will be responsible for the added return fees.
- What are the costs to process with eChecks?
Costs are significantly lower thanprocessing credit cards. Depending onwhether you are approved for a direct US account or an aggregator account, youwill pay a 3.5% or 10% rate plus $0.85 or $1.50 per transaction and a 10%reserve for the aggregator account only. There is a one-time setup cost of $199 for either account.
- Do returns affect my account?
Yes, like chargebacks to a credit cardmerchant account, returns can affect your account particularly if they fallunder the category of fraud. Keep inmind that fraud most often means the customer does not recognize the charge andis claiming non-authorization. As weaddress is “Best Business Practices”, thisis something you have a great measure of control over.
- Why should I process with eChecks if I take credit cards or paper checks?
With a huge trend towards consumer use ofelectronic checks, you limit your billing potential by not offering analternative that many people prefer. Ifyou are currently taking paper checks, you remove the manual processinginvolved with this (waiting for the check, taking it to the bank, waiting forthe check to post to your account, delays due to lost or stolen checks, etc.)plus provide a more convenient solution to your customer so they can moresecurely and quickly shop from home. Nowthe biggest factor is the cost savings which is much lower than credit cards!
- What network is used to process electronic checks (eChecks)?
eChecks are processed through the AutomatedClearinghouse (ACH) network which is governed by Reg E and NACHA rules.
- Does the ACH network have an “authorization” like the credit card networks?
No, with ACH, there is no means to confirmthat a consumer has sufficient funds in his account nor is there a way to holdthe funds.
- Are eCheck transaction processed over the weekend?
eCheck sales and refunds can be processedany day of the week but the associated funds only settle on open banksdays. For example, eCheck funds will notsettle on Saturdays or Sundays or bank holidays.
- What types of accounts can be debited or credited using eCheck payments?
Consumer checking or savings and corporatechecking or savings may be used.
$30,000+ Monthly Volume
Active Company Website
Share Business Details
Business Bank Account
High Risk Account Approvals
Rates As Low As 3%
Approvals Within 48 Hours
Weekly Payout Available
Max Chargeback Rate 4%
Minimum Setup Fee $199
Max Return Rate 6%
1475 Buford Dr STE 403-747
Lawrenceville, GA 30043
© 2018 MerchantTotal.com All Rights Reserved