When operating an ecommerce business, it is important to recognize that the payment options you provide may affect your revenue. Consumers are diverse when it comes to their preferred method of payment. Plus, the expense of various payment methods can differ greatly. Most merchants will take major credit cards and never consider other options. However, allowing your business to accept e-checks as one of your payment options may save money and increase the amount of sales that your store generates.
Accepting traditional checks as a form of payment for purchased goods has become a somewhat outdated practice. Due to non-payments from insufficient funds, many business owners quit accepting checks altogether. However, e-checks reflect present day technology and work well with online purchases.
e-checks provide a payment process which serves as the digital counterpoint of a piece of paper found in a check book. Due to the fact that there is no paper with e-checks, this method of transferring funds is growing popularity among internet consumers. e-checks are processed in several steps. The consumer enters his/her bank account number, routing number, and amount to be paid. The e-check is then managed by a third party who sends the merchant a message, informing them that their payment is on its way. 3-4 days later, the check clears the consumers account and is transferred to the merchant.
Operating with the same security as more traditional online payment methods, e-checks provide customers with an alternative to charging. Also, e-checks allow the customer to hold onto their funds for a few additional days, earning interest. However, it may take them longer to receive their online purchase as most merchants wait until the check has cleared before shipping the goods.
For merchants, e-checks serve as a money saving option. Processing fees for e-checks do not exceed $5. Therefore, merchants can save substantially on larger sales that the credit card companies charge a percentage on. Also, e-checks ensure the merchant that they will receive full payment without any fraud or cheating from the buyer. Overall, accepting e-checks will provide more options to potential consumers and simplify an ecommerce business.