FAQ

Why Instant eCheck™?

The recent credit crisis has forever changed the way consumers purchase goods and services. The Federal Reserve stated that in February 2009, consumer credit card spending suffered its biggest decline in over 30 years. The crisis has made it more difficult for the average U.S. consumer to even get approved for a basic credit card. Moreover, interest rates on credit card debt are constantly increasing. As a result, many U.S. consumers still prefer paying by check - it is cheaper and checking accounts are much more easily obtainable. Simply put; businesses must adapt to these changing times. Offering your customers the option to pay by Instant eCheck™ could increase your online sales significantly.

Why choose Payment21.com over credit/debit cards or PayPal?

In today's economic climate, companies are making more conscientious cost cuts and Payment21® is aware of this. Instant eCheck™ processing facilitates less expensive payment processing than credit/debit cards. Furthermore, Payment21® provides superior fraud prevention and offers leading industry tools including identity validation, account verification, and cross-border settlement. Online check payments are an alternative payment method meaning that merchants add Instant eCheck™ to their cashier page in addition to offering credit card payment options. While credit cards continue to be the top choice overall, an increasing number of consumers are demanding multiple payment options. A YouGov Independent Survey in 2009 showed that 50% of customers will abandon a sale if their preferred payment option is not available. According to a 2006 study by the University of Karlruhe, when customers are given a choice of three or more payment options other than credit or debit cards, there is a 12% increase in sales conversion as compared to when they are offered only one option.

Does Payment21® offer credit card processing?

No, our core business is Instant eCheck™ processing via ACH and Check 21 drawn from U.S. banks.

ACH transactions and Check 21 items: What's the difference?

There are some very important differences between ACH and Check 21. Understanding these differences can help you, as a merchant, to decide which best fits both your needs and the needs of your customers. One key difference is the way Instant eCheck™ payments are cleared. When a customer payment is made to a merchant and is forwarded to Payment21®, we have two options of clearing the funds with the U.S. banking system: it can be done through the ACH-network or through our Check 21 channel.

To clear funds via ACH, we must use an Automated Clearing House (ACH). There are several ACHs in the U.S.A. - typically owned by groups of banks. The ACH clearing process may take up to 5 days. With Check 21 it is different. Payment21® transmits the Check 21 items to its banking partners who send the funds directly to the FED for clearing. This process is faster. It may happen instantly but never takes longer than 72 hours. Check 21 is capable of processing cashier's checks, money orders, personal checks and business checks - while ACH only deals with consumer checks.

Disputes are also handled differently. With ACH, a customer has up to 60 days to file a dispute and can do so over the phone. With Check 21, a customer has 40 days to file a dispute. All disputes must be made in person at the customer's local bank branch. So, while it isn't possible to definitively pick ACH over Check 21 or vice-versa, merchants must carefully consider the differences between the two before opting for one or the other. And with fewer and fewer consumers using cash but opting instead to pay with checks and cards, businesses must implement a suitable electronic payment processing system to better serve themselves and their customers.

Does Payment21® offer an international solution?

Currently we process only checks drawn on U.S. banks. We serve merchants located in the U.S.A. and worldwide.

It appears that you're a clearing house - correct?

No, we are not a clearing house. We are a Payment Service Provider offering clearance of ACH transactions and Check 21 items.

What are the rates?

Click on "Get Quote" for more information. Complete pricing details are displayed in the registration area. Custom tailored rates are available upon request.

As a merchant, when can I expect payments?

With Check 21, clearance times are usually the same day or the following day. Settlements are made weekly or monthly depending on your sales volume.

How do I know my transactions are secure?

Payment21® utilizes the latest in Secure Sockets Layer (SSL) technology, which are cryptographic protocols that provide security for communication over networks such as the Internet. Simply put, you have no real security concerns with Instant eCheck™.

What type of business is accepted?

We accept most businesses, provided they are legal under U.S. law. Certain industries involving violence, unlicensed gambling and pharmacy are prohibited.

How do I sign up?

Click on "Create an Account" on the homepage of this site to begin with the 5 Step Sign Up.