ACHreturnsRX is a technology that aims to decrease NSF rates of ACH, echeck and Check 21 transactions by allowing the customer to validate their bank account balance at the time of the online transaction or purchase, via a log-in process through the RX platform.
ACH transactions are more widespread in the ecommerce space due to the low transaction cost compared to the high cost of processing credit card payments. However, the competitive price can be offset by the high rate of returns due to non-sufficient funds when the transaction hits the customer’s bank account.
According to a Western Clearing representative, via the RX, the merchant will be aware that the customer performs a payment via a bank account with insufficient funds to cover the purchase amount, and can also offer the customer other payment options, or cancel the transaction.
The project will continue in beta phase for another 60 days, with a full market launch by May 1, 2014.
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