In the modern digital economy, businesses and consumers expect payment options to be fast, reliable, and secure! Consumers can select their products, enter their payment information at online check-outs. As well as, have a product shipped directly to them overnight or the next day. Businesses have had to adopt automatic billing to make payments as seamless and simple as possible. As the demand and expectations for transactions become increasingly seamless, businesses are faced with a challenge: How can businesses keep payments secure and affordable while still meeting demands of consumers?
Say hello to eCheck payment solutions! eChecks are electronic versions of digital paper checks. From small businesses providing services to non-profits to associations that rely on members for their revenue, adopting eCheck payment solutions can be the best thing you ever do!
Modern Payment Problems Need Modern Payment Solutions
Despite the conveniences credit cards and digital wallets seem, collecting payments is still filled with major frustrations for many businesses. As everyone knowns, the transaction fees are already cut into thin margins. Overheads for chargebacks can be excessive and can lead to further costs in administrative time and unaccountability. For businesses that utilize mailing invoices or accepting checks in person, the timing is unpredictable. Cash flow only starts to develop after using their products, delaying operations until receipt of payment.
Once thought to be a simple solution, recurring payments can become complicated when credit cards expire or fail. And, add to that the fact that some clients don’t want to enter their credit card number online! Clearly, the traditional digital payment options are not meeting all the potential needs of your business, leading to customer hesitancy.
This is where modern solutions to modern problems are needed. Businesses are looking for smarter ways to get paid. They want something faster, more secure, less expensive, and flexible for one-time recurring payments. eCheck payment solutions fit the bill, offering a superior and more well-rounded approach to getting paid.
What are eCheck Payment Solutions?
eChecks are an electronic payment solution for businesses and facilitate the business collecting electronic payments. They collect via similar process to the act of writing a check and make a deposit – and doing so electronically. Instead of writing out a paper check, the customer is prompted online. First, they need to provide their bank routing and account number in a secure manner. This bank account information is then electronically routed and processed through the Automated Clearing House (ACH). Which is, the financial network banks utilize to move bunds, almost exclusively, between accounts in a safe way.
The customer provides an electronic authorization – there are many forms to facilitate this. The customer agrees to the transaction by signing either electronically or otherwise. The transaction is processed in a matter of days. This means that the money is coming straight from the customer’s checking account – eCheck is not convenient for checking payments. Additionally, no physical check stock, no stamps – no use of the postal service or in-person interactions necessary.
What makes eChecks unique is that it takes all the comfort and trust of conventional checks with them. Secondly, it then merges it with the technology. eChecks are completely legal, regulated by federal law, and accepted by banks and businesses everywhere. By utilizing the ACH concept as a primary classification, lenders utilize all of the safety and security of traditional checks. While still allowing for the safeguards and process improvements that customers seek. Many businesses are converting from traditional payment acceptance models to electronic payment solutions like eChecks.
Why More Businesses Are Switching to eCheck Payment Solutions
1. Lower Transaction Fees
One of the most popular attributed of businesses moving to electronic check processing is the money involved. Credit card processing has transaction costs involved which add up quickly. Especially when large transaction amounts or high transaction volume is present. eChecks provide businesses with a much cheaper alternative to processing electronically compared to credit cards. Certainly, businesses that are looking to maintain margins and reduce operating costs: ensuing a more relevant effect to the budget as a whole.
2. Fewer Chargebacks
Chargebacks can be both frustrating and expensive with credit card transactions. Not only does a chargeback reverse revenue, but it often also incurs fees and chargeback penalties with payment processors. eChecks are different. eChecks require direct authorization by the customer and run through bank established security protocol to ensure a much lower chargeback. This gives peace of mind businesses and presents less financial risk.
3. Faster Processing
Traditional checks can take days to arrive in the mail and even longer to clear the bank. This is not the case with eChecks. Once applied, payment will typically be processed in a couple of business days. By expediting the process to access funds, organizations can avoid waiting games when invoicing for payment and speed up cash flow overall.
4. Recurring Billing Compatibility
Because eCheck payment solutions require owner accounts, they are also great solutions for businesses that require consistent, recurring payments. A credit card can expire or become declined for account issues, but a bank account is stable. eCheck payment solutions are perfect for membership and subscription-based business models, or any kinds of ongoing billing model. Automated recurring billing through eChecks eliminated admin work and strengthens customer retention when payment is made.
5. Better for Clients
Clients look for convenience, trust, and flexibility when paying. eChecks deliver on all three. Many customers even prefer to pay directly out of their bank account rather than use a credit card. Especially for larger payments or on a recurring basis. eCheck payments remove the need to handwrite checks and eliminate the chance of bounced payments. As well as, provide a secure, trustworthy way for clients to authorize the payments. This is an easy, consumer-oriented option that inspires customer confidence in your business.
Ideal Use Cases for eCheck Payment Solutions
eChecks can be beneficial for nearly any type of business! They are especially suited and perfect for small businesses that are membership-based like gyms and nonprofits. Due to that they receive recurrent donations and are professional services that bill clients monthly. Organizations engaging in education, medical practices and home service businesses that deal with larger or recurring payments can be more than satisfied with the low fee and reliable cash flow. Subscription-based businesses – particularly those that bill monthly – can rely on eCheck solutions with virtually no risk of declined payment.
Are eCheck Payment Solutions Safe?
Yes, eChecks are safe, and a lot of people think eChecks are more secure than any other form of digital payment. eChecks are processed via ACH, an established and federally regulated system utilized by banks to transfer billions of dollars each business day. eChecks are processed securely using muti-layer encryption, tokenization, identity verification, and additional unique controls to protect that data at every possible risk stage.
Money goes directly from bank to bank, and that means you don’t run the risk of a third-party misusing or mishandling your sensitive dat. The banks all have their broad-based added risk protections that help you identify and flag payment fraud quickly. With eChecks, there is added fraud tracking and prevention to take that extra caution to protect your business.
Furthermore, people feel safe providing their bank information to an automated and secure system that looks like the trusted paper check they always used to think about.
How GMS Makes eCheck Payment Solutions Easy
At Gulf Management Systems, we understand that launching eCheck payment solutions for businesses doesn’t need to be stressful or overwhelming. That is why we built a platform that can easily connect to your existing systems, so you do not have to change how you conduct business to begin processing eChecks. When you use a Customer Relationship Management (CRM), membership portal, or internal billing software to collect payments, we can link it all together without a hitch.
From our tools, all have automation of recurring billing that you set and forget. You never have to follow up for monthly payments again or resend a bill. Our custom-branded payment pages will allow your customers to pay quickly, ensuring a seamless experience, while you keep all the leg work under your brand control. eCheck payment solutions are the most cost-effective, reliable, and secure way to accept and process payments from clients, with absolutely no compromise in convenience for you or your clients.
GMS provides a real-time reporting dashboard that gives you visibility on all transactions under your account, this will help you stay in control of your accounts receivables, manage your cash flow, and also see the trends in billing. You are getting much more than just a technology provider with GMS; you are getting a partner that will accompany you to make your payment process simple and uncomplicated.
Book a FREE Consultation today and let us show you how easy it is to upgrade your payment process with eCheck solutions built for the future.
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