High risk echeck merchant account


High-risk echeck processing is growing by leaps and bounds. That’s because of several factors, among them the inability of high-risk merchants to get a credit card processing solution. Some industries aren’t eligible for credit card processing based on Visa and MasterCard regulations.

For those merchants, echeck services are a viable, fast and economical alternative. Echecks integrate into most payment platforms. Getting paid is every merchant’s top priority, and echecks make that easier than ever.


Next to credit cards, echecks are the most commonly used sources of online payments. They are the electronic equivalent of paper bank checks. Anyone with a checking account can pay via echeck.

Merchants that accept credit cards should also consider accepting echecks. Many customers prefer this payment method, as it is less vulnerable to fraud than credit and debit card payments. There are also customers who do not have credit cards, but most people have bank accounts. Few merchants accept personal paper checks because of the inherent risk. That risk is nil with echecks since verification takes place. Paper checks can bounce. Echecks can’t.

Offering echeck payments is a simple and effective way to boost sales. Depending on your business, it opens up the market to those without credit card access. That might increase your customer demographic considerably. Other advantages include:

    • Free application
    • Low processing fees
    • Access to a sizeable banking network
    • Quick approvals–start accepting echeck payments right away.
    • No processing capacity limits
    • Echeck verification for fraud prevention
    • Accept echecks for online, phone, and mail payments
    • Receive payments within one day
    • No interchange payments
    • No need for receipt or signature verification

Paper check acceptance means making trips to the bank for deposits or taking photos of the check if using your bank’s app. Online check payment processing means you can avoid those time-consuming steps.

When payment problems occur, human error often plays a role. Echecks leave less room for humans to make mistakes.

Time is money. Echecks save both.


Automated Clearing House (ACH) is the U.S. bank network used for moving money electronically between bank accounts nationally. The National Automated Clearing House Association (NACHA) oversees all ACH payments. In 2020, approximately $62 trillion went through the ACH system.

What’s the difference between high-risk ACH processing and high-risk check processing? The terms are often used interchangeably, but they aren’t exactly the same. Both are forms of Electronic Fund Transfers, or EFTs, a term applying to any electronic payment.

As noted, echecks are equivalent to paper checks and work the same way. The distinction is that the bank starts ACH payments and transfers the funds from the customer’s account to the merchant’s bank account. The process is faster because funds move from one bank to another. ACH processing is available 7/24/365.

Which type of online check payment processing is right for your business? The answer depends on your individual situation. For example, if you are an international merchant, you can accept echecks, but not high-risk ACH payments because ACH is only available for U.S.-based payments.

Overall, ACH processing is less expensive for merchants than other payment options. That’s especially true compared to credit card costs. It’s also user-friendly. For those merchants offering subscription or recurring billing, ACH echeck processing makes sense. The customer “sets it and forgets it,” and you, as the business owner, receive the payment automatically.

However, there are some high-risk industries that ACH does not accept. There are individual merchants who will not qualify for ACH processing because of their history, such as poor credit. For these industries or individuals, high-risk echeck processing remains an option. NACHA does not oversee echeck processing, so it is not subject to its regulations.


High-risk merchants with a history of excessive chargebacks often find themselves unable to qualify for credit card processing. The nature of their businesses means more chargebacks are inevitable.

Chargebacks are a losing battle with the buyer’s credit card issuer. Credit card consumer laws overwhelmingly favor the buyer. Even in those instances in which the chargeback resolves in your favor, you stand to lose a lot of money in fees.

Reversing a chargeback doesn’t work out that well for merchants, since it’s still a stain on their record even when they’re in the right. In the worst-case scenario, you lose your product, money, and time. With too many chargebacks, you could even lose the ability to process credit card payments.

There are few chargeback risks with echecks because the buyer – not the merchant – assumes all risks. That reduces fraud.

It’s inevitable that some customers that pay by check will try to dispute charges with their banks. It is a lot harder for customers to succeed in those disputes once the funds leave their accounts.

Deauthorization is the term used for echeck chargebacks. Getting a deauthorization is a specific, relatively complicated process that requires a lot of documentation. The customer must deal with their own bank, and by law, must do so within 40 days of making the transaction. That compares to 180 days, or six months, for credit card chargebacks. The person disputing the charge might have to submit affidavits. The hassle factor weeds out those disputing smaller amounts.


Echeck payments work similarly to credit cards. Simply enter the customer’s name, checking account number, and routing number into your online echeck portal for online, phone, or mail order payments.

After the system verifies the veracity of the account and sufficient funds, the echeck merchant receives an electronic deposit into their bank account promptly. The average time is one business day.


With credit card payments, high-risk merchants may notice various limitations. A cap on the number of credit card transactions processed each month or amounts transacted can really affect your bottom line. You end up making business decisions not necessarily on what’s best for your business, but what credit card processors will allow. With high-risk check processing, those limitations don’t exist.

Because merchants can pay vendors automatically with echecks, cash flow improves. With paper checks, a merchant must go through the time-consuming and cumbersome process of reconciling them. Echeck payments appear in your account immediately, so much of that paperwork disappears. Associated costs, such as envelopes, stamps, and printer ink, are no longer necessary. Along with boosting sales, using echecks helps keep vendors happy. It’s a win-win all around.

High-risk merchants can overcome payment processing limitations with the addition of echeck services.


At Easy Pay Direct, we offer online check payment processing services for high-risk businesses.

If you’ve had issues with qualifying for credit card processing, high-risk echeck processing can make running your business much easier. Find out how echeck services can help your business grow while increasing your customer base. For more information, please contact us at 800.805.4949, or get started here.