High-Risk ACH Check Processing: Expectations vs. Reality

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High Risk ACH Check Processing By Quadrapay

Myth Busted – High Risk ACH Check Processing

Just like credit card processing companies ACH and echeck processors also follow strict underwriting process. The underwriters and compliance team members at ACH processing companies prefer to work with low-risk merchants, but sometimes they may offer services to select high-risk ACH merchants as well. In this detailed article, we will talk about how high-risk ACH processing can work for merchants. Before we address the topic, let’s understand how ACH can add value to your high-risk business. For high-risk merchants getting Credit Card processing account is becoming extremely difficult. After the closure of account sometimes merchants are listed on Match/TMF list. It can affect the growth progression of the business. This is the key reason why many high-risk businesses prefer to switch towards high-risk ach check processing.

Expectations From High-Risk ACH Check Processing

The usual expectation of any merchant would be to get the API so that the solution gets integrated on the merchant’s website. Some merchants also expect the processing company to offer a virtual terminal to accept inbound Telephone/Mail orders. Businesses may also be interested in finding the possibility of getting recurring payments through ACH and Check processing Accounts. Some may also require voice verification. Most of the merchants would be interested in verifying the account number, routing number and availability of funds before processing transaction so that the NSF ratio does not elevate.

Reality Of High-Risk ACH Check Processing.

Fortunately, in reality, All the features mentioned above are available. These features help businesses in reducing the return ratio as well as extending the life of the ACH account. Let’s quickly understand the process of applying for a High-Risk ACH Check Processing Account.

  1. You will have to fill and send the merchant account application to the third party ACH processing company. This is the processing company that eventually covers the entire risk, and that is why it will evaluate all the details that you mention on the form.
  2. You will have to send the KYC documents to the processor. The underwriting team at the ACH processing company will check all your documents.
  3. Website Audit. The third party ACH processor will audit your website and will ask you questions if they have any. To improve the chances of approval, your site must be complete and should have all the essential pages like Refund policy, Shipping policy, Terms, And cookie policy. You must have an SSL certificate on the website. Preferably your site should have a toll free customer care number.
  4. Signing The Contract. If the processor is comfortable with your profile, they will send you an ACH merchant account contract. This agreement will mention all the clauses concerning the processing capabilities of yours as a business. Read all the terms before signing. This agreement will also mention the transaction charges as well as Weekly and Monthly charges. The processor will also clearly define the level of return ratio that it can handle on your account.
  5. Integration Of The ACH Check Gateway. After getting approved for high-risk check processing, you will have to integrate the solution on your website. Most of the times processors will send you a detailed integration guide. Some may also offer readymade plugins that are easy to integrate. After integration you can perform a test transaction. You will have to get this confirmed from the processor that they have received the test transaction. Once this is done you can accept live ach orders.
  6. Settlement. The processor will usually make weekly payouts to your account after deducting the transaction and other charges as clearly mentioned on the merchant account agreement. Some processors may also ask for a holdback of 1-week funds. Some may place a 5% to 10% rolling reserve.

Quadrapay Advantage With High Risk ACH Check Processing

Quadrapay works as an independent sales contractor for few ACH and check processing companies. We will be happy to connect you with these service providers. Send us an email on [email protected]. You can also fill the basic merchant account application form on the contact us page.

Bankim Chandra
Bankim Chandra
Bankim Chandra is a Merchant Account consultant. He works with merchants globally and helps businesses in getting reliable payment processing solution. He writes extensively on the internet about Payment Gateways, Credit Card Processing, Echeck Processing, Chargeback Alerts, ACH and Business Funding.