Payments for CNP Merchants
Card-not-present merchants in the U.S. can offer an automated account-to-account payment acceptance method through a hosted service available from iCheckGateway. Buyers enter their bank routing number and account number to make payments, which are settled through the automated clearing house (ACH) network.
Merchants usually pay a flat fee per transaction if they want additional authentication of the buyer and their credentials to help protect against payments returned for non-sufficient funds. iCheckGateway.com says the pricing is lower than the current Federal Reserve mandated fees tied to debit cards.
The company can provide sellers the option of promoting lower prices to buyers if they make an account-to-account payment instead of using a credit card. Merchants receive a boost to their cashflow when using the ACH we can offer accelerated settlements cycles for some merchants depending on underwriting diligence and merchant use cases. Debit and Credit card transactions can settle faster than ACH, however ACH offers a fully automated alternative to the cards that is significantly faster than manual or paper processes.
Because credit card processing is so competitive, acquirers are constrained from boosting their margins with merchants. ACH payment acceptance can add 25 basis points per-transaction.
iCheckGateway.com handled nearly $6 billion in purchase volume in 2020 and over 80% was ACH payments. The company grew more than 35% last year.
INTERVIEWED FOR THIS ARTICLE
Jason Estes is Chief Executive Officer at iCheckGateway in Fort Myers, Florida, firstname.lastname@example.org, www.icheckgateway.com.
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Find this article here on Nilson Report ACH by iCG.
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