10 Dos and Cons of Successful Electronic Check Processing

So you’re a merchant and want to accept electronic check payments for your business. This is commendable. It is a step in the right business direction. Provide your customers with ease, convenience, and more flexibility in payment options. In turn, they will patronize your business. When done correctly, electronic check processing will definitely improve your sales and expand your customer base.

However, you must follow established electronic check processing protocols and avoid practices that harm your business.

Here are some pros and cons of successful electronic check processing:

1.) ESTABLISH A MERCHANT ACCOUNT

As a merchant, you are required to have a merchant account. It is the starting point of your retail or online business. Go to your local banks and settle for the best merchant account offer.

2.) PUT A PREMIUM ON QUALITY PRODUCTS OR SERVICES

Remember that there are many established business entities competing for customer attention. By insisting on quality products and services, you put your business ahead of any competition.

3.) DON’T LEAVE YOUR BUSINESS TO CHANCE

Always do your research and think of ways to improve your business. Don’t sit back and relax on your laurels. Embark on winning trading strategies.

4.) SELECT AN ESTABLISHED, LEGITIMATE ELECTRONIC CHECK PROCESSING COMPANY

For your electronic check processing needs, choose a processor that has been around a long time. Go with an electronic check processing company that understands you and provides you with the best package at competitive prices.

5.) DON’T BE ROUGH WITH YOUR CUSTOMERS

Treat them with respect. If they have a valid complaint, try to address it in the shortest possible time. And remember, sometimes it is necessary to tilt your policy in favor of your clients. For example, if they want to return a defective product but your refund policy period has passed, go with your policy and refund customers. You will gain a good business reputation in this way. And as you know, a good reputation always attracts more customers.

6.) DO A FURTHER EXAMINATION OF CUSTOMER PAPER CHECKS BEFORE ACCEPTING THEM

This is actually a very basic trading rule. Make sure the check is filled out correctly.

7.) DO NOT RENT CHECK PROCESSING EQUIPMENT

If possible, purchase electronic check readers. You get considerable savings if you own proprietary devices. Only in case of extreme financial hardship, you should rent a check reading or writing equipment.

8.) SUBSCRIBE TO THE ADDITIONAL ELECTRONIC CHECK PROCESSING SERVICE

For a very nominal fee, check verification and other services can protect you against a host of e-check scams and fraud.

9.) DON’T LEAVE CONTROL AND VALIDATION TO YOUR PROCESSOR

Some retailers with a point-of-sale environment simply accept checks without scrutiny and leave the validation to their processor. Many mistakes could be avoided if the merchant took the time to examine the checks, scan them with an electronic check reader, and then pay attention to the discreet message displayed on the computer screen. If the eCheck Reader screen displays “Bad Check”, please decline the transaction. Never accept a bad check simply because the customer is your friend.

10.) DEVELOP AND FOLLOW GOOD BUSINESS TAX MANAGEMENT

No amount of great electronic check processing service can turn around a poorly run business financially. Good tax management means you spend less and save more of your earnings, then invest them wisely. Any business that generates more expenses than profits is doomed to fail. And on the subject of good fiscal management, be sure to strictly adhere to the terms of your agreements with your electronic check processing provider. Failure to do so will result in termination of your electronic check processing service and possible closure of your merchant account. And that, surely, would not be good business fiscal management.