Check Processing

Increasing the ability to accept payment and improve the speed of payments is a way that merchants of a high risk business can increase their profits.  The use of high risk check processing services is an added payment feature that can improve the speed of payment acceptance verse the use of a high risk ach processing platform.

High risk check processing, also known as Check 21, originated from the Check Clearing for the 21st Century Act that was designated as an alternative to the antiquated ACH processing system that had been in use for decades.  The new system allows for improvements to the time in which check information is received, processed and payments are disbursed, increasing the overall speed checks are sent through the banking system.

Under the new check processing system, what use to be done by paper checks was able to be replaced by an electronic check to vastly increase the speed that the check can be sent from the merchant to the bank and the bank can fund the transaction.  Though the echeck process established by Check 21 is not as fast as a high risk credit card processing transaction, it is a significant improvement over the old check processing systems.

Merchants using the Check 21 check processing system have benefited from many of the improvements and features of the payment processing system.  With check processing, merchants are able to accept payment from customers who did not have a credit card or debit card, opening up the number of potential customers to an even greater audience.  The time that it takes for merchants to bill and collect payment from a customer is decreased significantly verse the older ACH system.  Merchants are also able to determine fraudulent and insufficient transactions much quicker with the rapid reporting that is available through high risk check processing services.

The Check 21 system has made significant improvements to the high risk check processing service through improved speed and simplicity.  For more information on check processing solutions for your business, please contact one of our Island Payments' representatives for pricing and available services.