Archive for January, 2010

The check 21 is an act passed in October 2004 that permits the collection, processing and pay outs of electronic checks among the banks in the U. S., simplifying and speeding up the process of checks and reducing time and manual effort. The Check 21 converts a paper check into an electronic check, thus enabling faster check processing, giving the retailers an edge.

Any online trader must necessarily have a mercantile account and credit card processing facility. Those who have a large volume of business like adult services, pharmaceutical goods, travels and tours and the like are considered high risk merchants and often banks and other financial services hesitate to deal with such accounts. This is when the high risk check 21 merchant account comes in really handy for the vendors. Such an account reduces the risk of fraudulent deals.

But with the numbers of high risk merchants on the increase, more and more service providers have come into the scene and are willing to process accounts for the high risk merchants, and as such they vie with each other to be premium providers of high risk merchant account services.

Most high risk merchants want to be in a position to acknowledge any form of disbursement from their clients other than just the usual credit and debit cards;  without which their business will only stagnate. But if the business falls into the high risk group, then even the banks doing the processing of such accounts are at a higher risk when compared with other business.

With the high risk check 21 merchant accounts the chances for fake dealings are greatly reduced and matters are further simplified for both the bank that is processing the account and for the vendor. Check 21  processing has no doubt improved the intensity of online trading and reduced the dangers of fraud.

High risk check 21 merchant accounts can help the business owner to widen his customer base and bring down expenditure to a very great extent. Such accounts are most advisable for both medium and high risk business services as it makes check processing very simple, assisting the vendor to better his customer relationships and function more effectively and confidently. Check 21 processing is a dependable method for the transfer of electronic funds and has become the latest tool in check processing

Well taking into consideration the many banks and financial services that have cropped up, it would be advisable for high risk merchants to do some really good research before selecting the most suitable service provider who will meet all the necessary requirements.

A high risk offshore merchant is an individual who operates a high risk commercial enterprise and for that purpose he requires to have a high risk merchant account. Since such an account may not be provided by any of the existing financial institutions within the country, the merchant may have to open it in some other country and this account is referred to as a high risk offshore merchant account.

The high risk offshore merchant account is offered by offshore banks which do not impose too many account restrictions as may be placed by the native banks. These accounts are tax-free in nature, are available round-the-clock for trading which can involve a number of currencies and also grant offshore benefits to the merchant.

High risk offshore merchant account is convenient since all that is required is the possession of an offshore trading company and a bank account in the name of the same company. However, due to the nature of the business the initial set-up cost along with the discount rate and the transaction fees is higher and one also needs to be prepared to make a cash deposit upfront or submit information as regards an ongoing cash reserve.

A trader who possesses a high risk offshore merchant account stands to benefit from it in a number of ways like tax, security, privacy and multi-currency international trading. In addition, the merchant can make a settlement in the currency of his choice and there are absolutely no restrictions in terms of the number as well as the size of transactions.

High risk offshore merchant accounts are generally the domain of the wealthy as well as the international businesses and while choosing an institution for opening this account the important criteria for the merchant are the credit rating of the bank, confidentiality and straightforward procedures.

Likewise, the offshore banks also have certain yardsticks which have to be met by the merchant prior to opening of the account. The first yardstick is the nature of the business as well as its potential for future growth and the second yardstick is the determination of the risk in terms of charge-backs, legal violations and financial liabilities to be incurred by the bank.

Sometimes a business owner may be fortunate enough to come across a golden opportunity for opening a high risk offshore merchant account with very low transaction fees. Although such offers are very rare, they can prove to be the requisite foundation for a successful commercial activity as they provide all the facilities without charging any fees.

This is the era wherein Paper money, Paper checks etc. have become outdated. Credit cards or ‘plastic money’ have taken over most transactions. Similarly, the conventional method of crediting a check and waiting for its collection etc is becoming obsolete by the day. Nowadays people make use of alternatives like High Risk Check 21 processing to transfer money.

Companies making use of ACH and check 21 processing option send an electronic image of a cheque called an IRD to the bank in place of a paper cheque. The concerned individual at the bank will evaluate the cheque and then proceed to debit or credit the client’s account accordingly. A lot of time can be saved in this manner. The time taken for processing is roughly 2 days and the costs incurred are comparatively less. Inter bank transactions are rendered more efficient and faster with this method.

High Risk ACH and check processing can be used to debit tax payments, club subscriptions, loan payments, online shopping bills etc. On the other hand you can also receive credits of your payroll, pensions etc through this method.

This method helps to increase the clientele of high to medium risk businesses. They will be able to transact with those customers who do not own credit or debit cards. Financial malpractices will also come down considerably. The transactions will take place on a timely and precise basis. This method identifies fraudulent cheques faster than the conventional method which will reveal any discrepancies only after the time interval taken for collection.

The increased usage of High Risk Ach and Check 21 processing has definitely lead to an upsurge in online businesses and related transactions. Due to the hassle free nature of this method more and more entrepreneurs have resorted to using it.

Businesses benefit from the quick cash flow generated by this method. The rules here are different from those laid down for ordinary cheques but the customer will receive a bank statement just as in the case of ordinary cheque transactions. Stress has to be laid on the manner in which you write out the cheque because the electronic image should be legible to avoid any discrepancy.

High Risk ACH and Check 21 Processing does have its disadvantages as well. It might be impossible to implicate fraudsters in case of any inconsistency because if the original cheque is destroyed then it becomes difficult to gather proof. So make sure that the cheques have outstanding protection features which cannot be copied.