eChecks. Are they worth accepting?

[tappel]

I'm thinking they are not, but I'm wondering if anyone has experience accepting eChecks as payment.

I currently take credit cards (via Authorize.Net) and PayPal. I also take personal checks and money orders. However, paper payments account for a minute fraction of my total sales and are barely worth the trouble of running to the PO box and then to the bank. Also, while paper payments account for a tiny portion of sales, they are the most likely type of payment that I never receive.

Any thoughts appreciated.

Tom

[Deb]

A lot depends on your target market... We accepted them for a short while a few years ago and ended up dropping the option. We still accept checks/money orders via the PO Box and that seems to work out fine for those who choose to use that method of payment. Of the ones that were paying by check when we accepted online checks, only a small fraction chose to use the online check payment option.

Most, in today's world, have a debit card that comes with their checking account. This enables them to make credit card payments straight from their checking... e.g. "online check" in a strange sort of way thanks to the credit card providers placing their stamps on the debit cards. For those that prefer to send their check via the mail, the majority do so because they have chosen to not use online payment options regardless of the type.

If your check sales are low, I personally wouldn't imagine the addition of online check payments increasing your sales...though it might add a bit of convenience for your clients which is good as well as a higher cost for you which isn't good.

If adding the option wont come at a great expense to you then I would suggest doing so for a period of time so that you can test the waters. If it doesn't work phase it out. If it does help, then you'll be glad you gave it the opportunity to prove itself.

[tappel]

Thanks for the help, Deb. Yeah, I can see no reason to go the online check route. I've never been burnt because I take personal checks, other than those people who just never send the payment.

Tom

[dank]

I think I've established myself as an expert in the area of [being a victim of] online fraud, and e-checks are about the only area I haven't had fraud issues with, although the sampling is rather small.

Dan

[LeeH]

ABSOLUTELY!

Here is why I will not stop accepting iChecks or EChecks…IMPULSE BUYING. You have to make it easy for people to spend their money. Echecks are a hassle because what we do is verify every check with the bank before trying to process it. If it does pass our check we will notify the customer that they must choose another form of payment.

If you are not accepting this form of payment you are missing sales.

Lee