While the majority of Internet sales are dominated by credit card transactions, online checks have become a cost effective and secure payment alternative for the U.S. market. .While the majority of Internet sales are dominated by credit card transactions, online checks have become a cost effective and secure payment alternative for the U.S. market.

Merchants who have incorporated a solid check processing solution in their Web sites reap the rewards of a recurring database that is independent of the rules and regulations imposed by VISA and MasterCard. This will be a vital revenue source as the news unfolds in the coming months about using credit cards for adult sites.

We are NOT all credit card worthy

According to a recent issue of Transaction Trends magazine, studies have shown that among adults over 18, only about 45 percent are credit worthy enough to get a credit card, while 95 percent have a checking account. In addition, many consumers may have no credit available on their credit cards. By not offering an alternative payment method, you are neglecting a significant percentage of potential customers.

How many potential customers are neglected? Try 75 million Americans! Recent data shows more than 75 million Americans do not currently hold or use a credit card. You can increase your sales overnight by offering an electronic check option to these customers.

Some other interesting facts about checks

Another reason merchants may benefit by offering electronic checks is how it relates to charge backs. Many don’t realize that the liability for merchants is much shorter with checks. Checks have only a 60-day window of liability as opposed to 180 days for credit cards.

It is easier for consumers to initiate a charge back with credit cards than to dispute a purchase made by check. To dispute a check, a consumer must file an affidavit. This process is lengthy and time consuming compared to simply calling your credit card company to charge back a purchase.

As the 1% charge back rule comes into effect by October 2003, checks will become an ideal billing option for your U.S. declined credit card transactions. The MPA2 program, a long time partner of Electracash, has integrated this very notion into its cascading billing program.

In summary, there are three main reasons why you as a Web site owner should look into online checks for your business:

· Increase your sales

Offer an alternative payment solution on your Web site. These non-credit card users will be happy that you have offered them an alternative.

· Cheaper to process then credit cards

Electronic funds transfer is significantly cheaper and will substantially increase your bottom line.

· Improve cash management and customer service

If you are STILL taking checks via snail mail, as many Web companies STILL do, you will typically wait for customers to send paper checks in the mail and then wait for the check to clear before shipping the order.

Electracash not only expedites the check settlement process quickly by putting cash in your pocket, but it also allows you to ship orders in a more timely manner. Some of the benefits you will receive by accepting checks with Electracash include no set up fee or administrative fees, same day notification on returned checks (NSF), third party collections available to merchants, technical support at no extra cost, and ability to cross-sell and upsell with checks at a competitive rate that fits your business.

If you’ve ever wondered how your business may benefit and profit by adding a check processing solution, now is the best time to find out.

Holly is the Sales & Marketing Director for Electracash, Inc. and can be reached at sales@electracash.com.