What Is Electronic Check Processing or e-check?

Electronic check processing is the simple process of taking your customer’s paper check and converting it to electronic form. Then, the funds the customer owes you are transferred from the customer’s bank account into your business bank account. The transfer takes place using the Federal Reserve Bank’s Automated Clearing House (ACH)system. It’s not only a safe way to accept payments but also faster. Instead of waiting several days for a paper check to clear, you can have the money in your account in just two business days. The e-check Costing involves in the -echeck gateway

Application Fee
The Application fee  of the check gateway or Card Gateway is always being charged by the agent/consultant just to get the genuinity of the merchant, While working on the merchant profile. These guys complete the merchant profile, make them compliance for the instant bank approval.
The application fee is is a very small amount Which is upto 300 USD being charged by the Agent/Consultant.

Setup cost
The setup charges for check gateway  depends on PSP to PSP, few of the PSP do charge a setup cost upto $500 USD. However most of the PSP do not charge any setup cost for the same.

Rate is also known as TDR (Transaction Discount Rate) or MDR (Merchant Discount Rate). This rate is being charged  from the PSP or bank to process echeck-payment. for USA merchants this rate will never go higher than 5 % however for Indian or International merchants this rate goes upto 12% depend on the risk factor of the business.

TXN Fee (Per Item)
This is a fixed cost being charged by the PSP for ACH. This amount will be charged for each check transaction send by merchant to PSP. The txn fee for USA merchants will be about $1, however for Indian or International merchants this rate goes upto $3 per item.

Rolling Reserve
Rolling reserve an particular amount hold by the Processor/PSP for security purpose as most of the processor do hold 5% of total sales for 3 months in case of low risk merchant and 10% of total sales for 6 month in case of high risk merchant. Merchant will get this amount back as per their terms i.e. 3 Months or 6 Month respectively.

Monthly fee
Most of the processor do not charge the monthly fee for check gateway, however some of them do charge about $20 USD to $50 USD per month.

Payout Cycle
Payout cycle for check gateway vary on the transaction amount charged by the merchant. Mostly it is weekly with one week arrear or Payment of approved check from Monday to Friday will be paid on following Thursday or Friday. HighRisk Gateways do offer the e-check gateway from different PSP/Bank. Our rate is always unbeatable with Genuine solutions. HighRisk Gateways do have  own underwriting procedure which assure 99% approval in real time. You can start processing in just 2-3 days.

Return Fee
In case of returning a check for any reason such no enough fund in the account or stopped by account holder…..etc. This fee is always below 50 USD.

Wire Fee
Wire fee is being charged by the PSP while sending the fund to your bank. This fee is also being charged by the bank to send the fund.
This fee is about 5 – 60 USD on per payout basis.

Check gateway normally takes 5-7 days for the approval and 2-3 days for live gateway. After getting live gateway details, you can integrate the gateway on your website on also can send the txn by VT is provided by PSP. This cost is always on the merchant part. They can contact their website developer for better help.

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