High Risk ACH Check21 Processing


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.

Category : High Risk ACH Check21 Processing | Blog

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.

Category : High Risk ACH Check21 Processing | Blog

The nature of certain businesses is such that they find it difficult to open a merchant’s account and face a lot of restrictions. Those involved in the travel business, internet based business and clubs etc are the enterprises that fit into this category. Thus, the only option for these entrepreneurs is to open high risk accounts with banks and other financial institutions offering such services. These accounts can also make use of the High risk check 21 service facility available to other accounts.

The check 21 services, the latest technology which has quickened business transactions have done away with the need for using conventional paper checks and Automated Clearing House Formalities.  The rates when compared are also significantly lower. Here the electronic image of a check called an IRD is sent to the bank electronically instead of carrying it physically to the bank to be presented. This technology is safe and reliable. All payments are settled the very next day and there are no middlemen involved. Reserves are not required either.

After the check is processed by the concerned person in the bank, funds are debited or credited into the merchants account. This technology helps to rationalize banking transactions and also leads to improved customer satisfaction. High risk cheque 21 services also helps to identify bad checks sooner compared to the older method where you have to wait for days before you know the status of the cheque. Thus the risk of fraudulent transactions is also reduced.

This facility enables a business to collect money from those entrepreneurs who do not have debit or credit cards. Thus high risk businesses have managed to rope in more customers, reduce expenses associated with cheque processing and increased credibility of the business by timely collection and payment of funds.

This facility also provides account management tools and online reports and detailed summaries. Thus the financial software of more and more firms is being equipped with this facility. According to a recent survey, more than 18.2 billion customers around the world, most of them having high risk accounts have resorted to using this facility. The convenience provided by this facility has increased the volume of online transactions.

Contributions to organizations, inter business transactions, club subscription charges, insurance premium payments, tax payments are some of the payments which can be made using high risk check 21 services. Likewise salaries, pensions etc maybe collected through this facility.

Category : High Risk ACH Check21 Processing | Blog

Check 21 is the cheapest, fastest and safest means of meting out check payments. When using check 21 facility, dealings are cleared utilizing the exchange of check images from bank to bank. Most of the high risk merchant service providers make use of this latest facility so as to hasten payments hence High Risk Check 21 processing is becoming the order of the day. People who write checks must necessarily be in the know of the Check 21 regulations.

Benefits of Check 21

  • One has speedier access to money which means one receives payments faster resulting in quick flow of cash.
  • Checkfile can be presented as late as 8 pm for clearing when compared to the time of ACH files.
  • Low risk of scam – the shorter the time required for dispensation the safer you are from fraud.
  • Online reporting system wherein a lot of reports can be gathered faster.
  • Check 21 is cheaper and faster as vendors utilizing the remote deposit capture do away with umpteen number of trips to and from the bank, thus saving on cost of transport also.
  • With the use of the remote deposit capture the manual process of preparing a check and the resulting errors can be reduced.

With the advent of the highly modernized Check 21 processing system, high risk merchant providers have found an exceptional option to the more restrained ACH rules.

High Risk Check 21 Processing is managed by certain laws regarding checks and the Uniform Commercial code that have nothing to do with the ACH rules. All the check 21 dealings are there when he receives the bank statement exactly in the same manner as they would have appeared if it were a paper check.

One very significant point that has to be kept in mind when writing out a paper check is to be very legible because when an electronic image of a check is taken, clarity is of utmost importance. This aids in steering clear of mistakes in the vendor’s account or his overdrafts. Also remember to keep a track of you check dealings and ensure that every check that is written is noted down.

Once vendors is armed with all the details of Check 21 he has to ensure that he sets up a High Risk Check 21 Processing account with a provider who will be dedicated  in learning the nuances of his business and suggest the best solution in accordance withy the vendor’s requirements. The vendor must ensure that he will receive excellent service, better processes of disbursement and rates that are greatly competitive.

Category : High Risk ACH Check21 Processing | Blog

Check 21 or the ‘Check Clearing for the 21st Century Act’ is a directive that facilitates the collection, dispensing and payment of electronic checks between the banks in the US. This ruling came into being on 4th October 2004, bringing about considerable modifications in the traditional mode disposal of checks. The paper checks are converted into E checks for easier dispensing and payment. High Risk Check 21 Solutions are extremely worthwhile for those high risk merchant service vendors as it diminishes the dangers of fake dealings.

High risk merchant service owners will be in a position to add on to their customer database and collect their payments on time and correctly. There is also the facility to safeguard the merchant from checks that bounce as it will be extremely easier to spot them, which was not the case with the conventional paper checks.

The check 21 introduces to the present day world a novel model giving the vendors an edge, but the down side of Check 21 is that in spite of the fact that it enhances the speed of transactions there is every chance that fraudulence in checks authorities will not find it very easy to punish the wrong doers because if by chance the paper check is destroyed or lost after imaging there will be no proof to scrutinize the fraud. This is one point that has got both the providers and the merchants quite worried. And both parties are hoping that there will soon be some answer to this issue. So it boils down to the fact  that if a check is not accepted by anyone because they suspect that it could be a scam what on earth is the point of holding the check in your hands!!

Well one of the solutions for those following the check 21 regulations could be to ensure that the checks used have outstanding security features that are not copy survivable, meaning that the features of the paper of the check are as reliable as possible. It should be such that the features will assist fraudulence to be brought to the forefront at the point where the check is received. This could help to relieve the burden of legal responsibility to the bank that does the conversion.

But by and large the High Risk Check 21 is one of the regulations that has revolutionized the banking sector giving the high risk merchant service providers an opportunity to really grow in their business.

Category : High Risk ACH Check21 Processing | Blog

ACH processing or Automated Clearing House processing as it is rightly called is the means by which the vendor is enabled to bill the client through his bank account for the services that you have rendered. This is a dependable method for vendors to make their collections. This system has come into being since the early 70’s.  More than 95% of the people doing online business have checking accounts and if the type of business that the trader is doing is based on a monthly income from the client he will be in a real dilemma if someone delays a payment. Such matters can be dealt with through the High Risk ACH Processing account system. There is also the facility for verification through an ATM that can easily verify the validity of an E check.

In the case of high risk merchant services, it is absolutely imperative that the vendor has a High Risk ACH Processing system in place. It is nothing but an electronic means of transferring money wherein the dealings are conducted in more or less the same way as in the conventional methods. The U S Federal Reserve supported the ACH in its initial stages by providing computers and electronic assistance to help the banks.

It is not really very difficult to start an ACH account. Even the high risk merchant service providers who help traders to maintain their credit and their accounts have started offering to help with the setting up of High Risk ACH Processing accounts, making it more convenient for traders who can go to a merchant services provider for all their needs.

The advantages of ACH processing

  • An ACH processing System permits the electronic transfer of funds through the internet.
  • The transfer of funds is direct from the funds of the customer’s bank account to that of the trader. This is more commonly known as the EFT or the Electronic Funds Transfer.
  • ACH account processing has the facility to transform all checks to be into electronic checks.
  • Consumer dealings can be processed electronically. The list is endless.

One of the significant implementations of the ACH is the check processor that assists a business to bloom and grow. Combined with software that helps to verify the ATMs the trader or merchant can comfortably sit back and enjoy the payments pouring in. The customers are also greatly satisfied in the bargain making business thrive for everyone.  So in the interest of both the merchant and the customer it would be a great idea to set up a High Risk ACH Processing account.

Category : High Risk ACH Check21 Processing | Blog

Automated Clearing House (ACH) and check 21 processing are reliable systems for facilitating electronic funds transfer.Here,electronic checks are used instead of the conventional paper checks.

Check 21 is the newest technology in check processing. This enables the company to convert a paper check into an electronic check. The electronic image of the check, called an IRD,is electronically sent to the bank instead of physically transporting a paper check there.After the electronic check is processed by the bank’s check writer, funds are debited or credited to the consumer’s and merchant’s accounts.This way, transactions are processed more efficiently and with less time.

ACH provides a secure and private inter-bank clearing of electronic payments.Funds are processed,cleared,and debited or credited to your account within 2 business days.It is more cost-effective because it reduces check and credit card associated costs.

Debit and credit payments

ACH can accept many forms of debit and credit payments.For example,High Risk ACH debit payments can be done for club dues,business-to-business payments, contributions to IRA and other government benefits, insurance payments, mortgage payments, loan payments, tax payments, online purchases, and many more. While credit payments can be done for payroll, pensions, social security payments,tax payments,and others.Many financial transactions can be done through ACH.


High Risk ACH and check 21 processing systems are highly advisable for high risk to medium risk merchants because these reduce the risk of fraudulent transactions.From a business owner’s standpoint, ACH and check 21 processing will streamline processes and improve customer service.Because of these financial systems, businesses can accept payments from consumers who do not have credit and debit cards.

High Risk ACH and check 21 processing can increase client base,reduce expenses, and facilitate timely and accurate collection of payments.These systems also protect business owners from receiving bad checks because these can be identified sooner than with the processing of a paper check. ACH and check 21 processing protect your business and your clients from fraud. Today, more and more businesses have equipped their financial systems with ACH and check 21 processing.


In fact, according to the National Clearing House Association (NACHA), almost 18.2 billion ACH debit payments were made online in 2008. More and more businesses and consumers are utilizing this method which is faster, hassle-free, and cheaper.ACH and check 21 processing have definitely increased the volume of online transactions for many businesses.Not only that,ACH and check 21 processing have also greatly reduced the risk of fraud.If you want more security in your financial transactions,ACH and check 21 processing are the solutions.

Are you interested in getting these for your business?

HR Merchant Services has an automated system that can be readily integrated into your existing financial system.We offer world-class services with affordable rates and better technical support.We have an expert team of people backed up by years of experience.We can assist you in finding targeted solutions to your financial needs.Let us help you in your journey to success!

Category : High Risk ACH Check21 Processing | Blog