Don't Overlook eChecks for eCommerce Payments
There’s a good chance you have the wrong impression about checks as a form of payment. After all, why would someone pull out their checkbook when they could pay with a credit card or mobile wallet? The truth is, echecks remain not only a viable but a preferred payment option for many consumers.
In 2018, online ACH payments were up 14.2 percent to 5.9 billion, with a total value of $2.9 trillion. The newly introduced option of same-day ACH processing saw $159.9 billion in payment volume during 2018, up 83 percent over the year before. Over the next 10 years, NACHA projects that same day ACH volume will grow to 1.8B transactions annually.
Merchants find value in echecks for a variety of reasons.
The vast majority of leading online retailers accept echeck payments. There’s every reason to believe that your business would benefit from accepting echecks as well. With eChecks you can:
- Lower your processing costs
- Convert recurring customers to a less expensive payment option
- Avoid declined recurring payments caused by expired cards
- Reach more customers
- Separate yourself from the competition
Legacy eCheck Solutions Have Issues
With all of these benefits, why aren't more merchant's offering echecks as a payment option? Unfortunately, there are a number of issues that come along with most echeck processing solutions.
- A higher risk of fraud. No reliable way to authenticate echeck customers, or validate account numbers.
- The risk of NSF (non-sufficient funds). Funds aren't guaranteed.
- A delay of several days between payment and funding impacts the merchant's ability to fulfill orders immediately.
- Poor customer experience, from having to enter bank routing and account numbers, to delayed fulfillment and shipping.
A New Approach to eChecks for eCommerce
Vesta and Plaid have forged a new partnership that delivers exceptional value to merchants looking to add electronic checks to their list of available payment options. The solution combines the data enrichment and real-time balance information provided by Plaid with Vesta’s zero-fraud guarantee. But that’s not all. Vesta strengthens the solution by including a guarantee against nonsufficient funds (NSF) for all approved transactions enabling merchants to offer immediate fulfillment now that echecks no longer carry the risk of fraud loss or NSF.
Vesta is a fintech pioneer in fraud protection and fully guaranteed payment technologies, helping online merchants, major telcos, payment processors, and acquirers optimize revenue by eliminating the fear of fraud. The company’s flexible, scalable solutions enable companies to grow their businesses by focusing on revenue rather than risk, delivering secure, frictionless transactions that maximize acceptance and improve customer experience – all backed by a zero-fraud-liability guarantee.
Plaid is focused on democratizing financial services through technology. We build beautiful consumer experiences, developer-friendly infrastructure, and intelligent tools that give everyone the ability to create amazing products that solve big problems.