E-Check conversion rates

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Delta223

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Aug 14, 2009
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While the rebill fiasco with credit cards settles down, I'm looking for other solutions to keep re-billing. E-Check looks like a viable option: fee's are much higher (7-8%) but these days you can't be picky.

Only concern is how much does it affect conversions? I'm sure it's not going to help; for you guys running e-check payment option exclusively is the conversion hit pretty bad?
 


Lol seriously? You think dealing with chargebacks is bad wait till you're dealing with people after you just took money directly out of their account without them knowing it.
 
Its actually better in that regard; chargebacks are MUCH easier for the customer to initiate than trying to reverse an ACH (E-Check I'm not sure but I believe its the same) Although I'd rather accept CC's, this is the one benefit of direct debiting bank accounts. And since I don't run a scam offer I'm not scared of big legal issues.
 
you should look into check21 processing - you can get an account on which there will be no % fees, just flat fees for each debit you attempt. also, if your rebill isn't too scammy you should be able to get it approved somewhere just fine. most of the hype is.. well, hype.
 
echecks are good, some people find their offers converts about the same..

I know the echeck (ACH/check21) solution that you guys need... and can be lower than what Delta said depending on your biz.

PM me if you're interested.
 
Paying above 4% for echeck is crazy, I usually charge for our solution somewhere in the 2-4% range depending on volume and other factors.

PM me if interested
 
hmm 2-4% is extremely nice, but not a realistic rate that any of these type of rebill offers people run here would receive, due to the amount of risk.

Its a low rate but the account will not stay opened for long as the accumulated response on the transactions will raise a big concern and the account closed. The merchant who setup such a low rate, most likely doesnt understand your process or the business enough, and will not appreciate the irregular high returns and number of complaints which will be the cause for closing.

Ofcourse 2-4% can be a realistic rate for a non high risk merchant whos account doesnt have any negative notions about it.

It all depends on the business, and the ones here are high risk and require special merchant care for the business to succeed.

You need an extremely reliable check processor, and an account at 2-4% is likely not a proper account able to sufficiently handle the type of risk created with certain ecommerce product check rebills.

Jay, I don't mean to sound negative about what you mentioned, but just trying to make it clear how those rates are not for the high risks here.

PM to discuss or about getting a reliable account setup.
 
All the spammers come out. Go fuck yourselves and advertise if you want to get your name out. Posting that you "know" of a solution, when it's clearly your own solution doesn't fool anyone here.

As for conversion rates, how many people do you know that are willing to take out a check to buy anything online? This thread has fail written all over it.

Fuck this, I'm getting back to watching the Olympics.
 
There will be problems with chargebacks. Banks will not like that. Accounts will get shut down.

It may be just like what I've heard about Preston Million raping and murdering a retarded handicapped girl in the 90's..not pretty.
 
bgd2010 said:
There will be problems with chargebacks. Banks will not like that. Accounts will get shut down.

It may be just like what I've heard about Preston Million raping and murdering a retarded handicapped girl in the 90's..not pretty.
Click to expand...

Wait so was Preston Million charged and then dismissed after raping and murdering a retarded girl? Was it because of a technicality or are you just not sure? I'm guessing you're not sure......... ..... .... unless you like tort lawsuits
 
bgd2010 said:
There will be problems with chargebacks. Banks will not like that. Accounts will get shut down.

It may be just like what I've heard about Preston Million raping and murdering a retarded handicapped girl in the 90's..not pretty.
Click to expand...

Have you actually processed check21 before? Or do you just talk out of your ass?
 
I'd like to hear more about these solutions, I've lost my 3rd processor, and guess what guys? I have 0 chargebacks!

Rebills in general are under a microscope, and if they find one single thing that they don't like, they're cutting off processing.
 
@flysarescary nah just what i've heard
@productionhead i talk out of my ass all the time. i have also run rebill/continuity traffic, have done a couple jv's with merchants and am intimately familiar with the processing. unless the processor knows what pubs are doing and has ways to get around the chargeback issues, ach is not really a viable solution. Check21 maybe but that gets pricey and lots of processors will still not be super excited about the business.

even if chargeback's aren't excessive the NSF fees will probably be a killer and break the biz model, depending upon the type of offer and type of traffic.
 
No offense to anyone, but you would think in a thread like this.. only people who actually know about processing checks would be chiming in and handling the discussion. I figured it would be experienced people or someone in need, but all i see is someone who's an experienced poster, seeing as they have over 1,000 posts. What a joke and a complete fail providing 0 knowledge on the processing of echecks.

"how many people do you know that are willing to take out a check to buy anything online?"

Gee I wonder.... the thousands of people that do it every day online?. Did you know that there are millions of people that do not have credit cards? Did it ever strike you that maybe you could take on more orders if you included a echeck payment option along side your CC? Did you know you will increase your conversion because you have users screaming at your website "I DONT HAVE A FUCKING CREDIT CARD". Did you know that since you have 0 cc merchant account, your conversion is 0, if you apply an echeck method your conversion wil sky rocket.

Its looking to me like people here do not know that much about high risk processing, at least for checks.

The smart people here should know about cashadvance offers, which do not use cc as payment method and have a ridiculously high conversion. If you want to discuss a campaign for echeck or a processing solution let me know. Just don't pay attention to the people that have insane high numbers of posts because most likely they are just trying to build it up by posting whatever they can regardless if its true or not, they must love to have their mumbo jumbo heard.

FYI bgd2010, NSF fees are regular return items, they are not hostile returns so they will not hinder your account. Also if your with a legit merchant who isnt trying to rip you off, NSF item returns have a much lower fee than hostile returns. You don't want to pay a flat fee for returns..
 
You need to read the post again. I specifically said "even if chargebacks AREN'T excessive"....thanks for the lesson though.

NSFs wont fuck your merchant account but they'll certainly break the business model financially.

Re payday loans: Your comparison is not valid for one simple reason - in a PDL transaction you're primarily providing ach and account info to get money put in, not take out. you're also dealing with a underbanked/unbanked consumer who either has no access to credit or has so obliterated their FICO that they have gotten used to providing bank account number. 40% percent of online payday consumers are sub 550 fico - thin file or no file. Asking consumers for their bank account info to give them money is entirely different than asking them for their bank account info to take money from them.

Now, if you're talking about rebills on the back of a pdl app that's an entirely different ball game. In that case you need to be ready for a 30-50% percent NSF rate, not counting prebill cancels and chargebacks. If your merchant account and business model can't handle that don't even bother showing up.

Of course that's less of a problem if you're placing an opt in on page 1 of an app vs. buying on the bottom of a ping tree, because in scenario #1 you're at least marketing to consumers who still have a chance of getting a loan.
 
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