For a small business owner, there are a lot of struggles that need to be surpassed. Implementing a reliable and adequate payment processing solution is also one of the tasks. It is always important to maintain cash flow. Every business should offer diversified payment methods to their customer to choose with the one they are comfortable. But now you don’t have to worry. We at TheEcheck provides you with the advantage of merchant check processing services. We also offer a simple application procedure so that you always have a hassle-free experience.
Contact us today for the merchant account and payment processing solutions at +1-855-403-3855.
What Makes Merchant Check Processing Services Better Compared To Paper?
Electronic checks are also termed to be as echecks. These are the digital forms of traditional paper checks. Echeck utilizes the network of ACH system (Automated Clearing House) to debit the funds directly from the customer’s bank account and credit it to the business merchant acquiring a bank account. As because the echecks are in digital form, they tend to get processed faster and get settled quickly in the bank account. Paper checks are likely to get obsolete soon in the future. With the help of echeck, a merchant can easily accept payments without going to the bank and then deposited in their acquired checking account. According to a report, it stated that nowadays, more and more purchases are being made online. This includes the usage of the new digital form of direct payment services which are quick and easy to process.
How Does Merchant Check Processing Services Works?
To retrieve the funds through echeck services, a business merchant needs to obtain some vital information from the customer. This includes checking account number and the bank routing number. This process can be done either by phone, online or even in person with the help of paper form. After this, the funds are verified with the customer’s bank account, and then the debit happens over the ACH network.
These are the parties involved in merchant check processing services:
- The Initial Originator: This is the business merchant that takes the echeck. This includes the process of information retrieval from customers and providing it to the payment processor.
- The Business Bank: A business originator bank is also referred to be an ODFI (Originating Depository Financial Institution). This places the ACH data and aggregates the payment from several customers. All these payments are transferred in the form of batches to the ACH operator.
- ACH Operator: This operator shortlists the request for fund transfer and then settles the funds into the business merchant’s bank account.
- Customer’s Bank: At the customer’s bank account, an RDFI (Receiving Depository Financial Institution) retrieves all payment requests. After the process of verification, the funds get transferred and get settled in the business owner’s bank account.
There are a lot of benefits a business owner can take advantage of merchant check processing services. You can get in touch with our team at [email protected].