Evaluate to E-Check, Other Payment Systems are Costing Merchants

In order to drive the business growth of high risk merchants, the online payment processing system should be well-organized, cost-effective, expedient and easy to integrate with web services. Currently most of the leading payment systems are failing to provide a fecund disbursement mechanism that can minimize the risk of transaction for high risk merchants.

A major upgrading in this area is required to enhance the authority of electronic payment industry. Actually, most of the merchants are helpless to protect them self from fraud-risk of electronic payment system. Though, there are numerous tools available to merchants for fraud protection and over the past years the rate of fraud protection also dropped but still in case of online transaction fraud, merchants incurs huge losses considering it a prevalent issue globally.             

Customer empowerment – A cost to merchants

Actually, the problem is with NACHA and card associations that made easy for the customers to demand their money back they paid even after receiving the product or utilizing the service. Reversals in ACH E-check and charge backs with credit cards empower customers to easily get their money back from the merchants. This is good for them in case of fraud when someone else has used the payment instructions without authorization of customer.

Few customers take advantage and demand their money back from the merchants even they have not been such deceitful ID transactions. They also do this when they find any charges in their bank statement are suspicious or not accepted by them. They can easily get their money back into their bank account just by making phone call to bank or the cards issuer. However, E-check processing for tech support is now helping merchants to minimize such risks.     

Illegal chargebacks are costing industry massively  

This kind of money back demand is like illegal charge-backs, which is a prevalent issue high risk business costing more than $1 Billion to online merchants annually. To avert such transactions, there is a definitely a need to create adequate tools or protective payment processing system for this industry. Though, current online payment system is completely favorable for customer from fraud perspective but for the merchants it fails to address the jeopardy of defrauding.        

Here, the electronic payment system becomes a one-sided mechanism failing to protect merchants from fraud transactions translating an additional cost due to chargeback or payment reversal processing costing and also reduce the efficiency at various stages.

Advent of E-Check is the best alternate for merchants

NACHA and cards associations should strict the norms to process chargebacks by customers only when they have been defrauded. The checking system of such processing should be amended accordingly and each customer must be abided to sign the agreement under the delinquency penalty of mendacity, and get legalized a fraud claim official declaration before they get their money back of such false transactions.

However, with the checks the rate of return of unauthorized transaction is around 15% of credit card chargeback, while unauthorized returns rates through ACH processing is more secure, efficient and cost effective compare to other modes of payments.     

E-check emerges as one of the most potential payment system to meet the future demands of the electronic payment industry. E-check is becoming the preferred choice among the high risk business owners to carry out online payment processing more efficiently, with the worldwide availability to customers and business owners to deliver a more unbiased and justifiable electronic check payment processing services for all types of high risk merchants.