How accepting eChecks can significantly drive down your merchant costs

February 23, 2015 by Jeremy Almond
Credit cards are the default method for ecommerce and mobile payments, but as any business owner knows, the transaction fees can add up quickly and eat into your profits. What if you could give your customers an equally convenient payment option with much lower transaction fees?


Many members of the PayStand community are doing just that, by turning on the “eCheck” rail as a payment option alongside credit cards in their checkout. eCheck allows your customer to pay by direct bank account debit, either by entering their bank routing and account number, or—(and this is really cool, if we do say so)—via their bank account login, if they use online banking. PayStand provides instant verification of funds so that you can confidently ship the item or provide the service being purchased.

Check out the monthly cost savings for eCheck vs. credit cards (even at PayStand’s low credit card rates), on a theoretical sales volume of $20,000:


Because eChecks have a 0% fee associated with each transaction, and a nominal fixed per-transaction fee, the cost savings on higher volume sales are substantial. In the above example, you would save $518 in one month running the same number of payments through eCheck.

Many of our merchants are encouraging their customers to pay by eCheck by passing the credit card fees onto them and displaying the cost savings of the eCheck alternative at the point of checkout. Here’s an example of a PayStand with both credit cards and eCheck as payment options at checkout:

The fees are automatically calculated and shown to the purchaser, giving them a strong incentive to use an alternative payment method. If they select eCheck, they can select their bank from a drop-down list and use their login to complete the transaction.  For your customer, it’s a much easier and more secure process than pulling out their credit card and entering all those digits.

PayStand's eCheck option saves merchants money

Customers can pay you securely using their online banking login

Using eCheck for Recurring Payments

When we first rolled out eCheck support, many of our PayStand merchants asked for the ability to charge recurring payments with eCheck, and we listened! PayStand customers now have the ability to set up automatic recurring charges from their bank account, with only a nominal fee attached to each transaction ($0.25 up to $100, $1.00 up to $1000, and $2.50 over $1000). Recurring eCheck payments are being used for online service providers, property managers, and especially nonprofits, which brings us to…

eCheck for Non-profits

When every dollar counts and expenses are scrutinized, accepting eChecks makes especially good sense. Non-profit Remember Nhu was one of the first PayStand members to turn on eChecks, and they’ve seen a significant cost savings as a result. For donors who formerly mailed in a check, eCheck provides a new level of convenience, and for those big end-of-year-donations, the savings on credit card fees really help their cause.

“The eCheck is an AWESOME feature—that really helps our donors to give ‘smartly’ and without credit card fees!! I would tell everyone to choose this method—if I could!! – Anne Moyer, Remember Nhu

Is eCheck Secure?

The security of your merchant and customer data is of the utmost priority at PayStand. We only work with processing and bank partners who meet our high standards for protecting sensitive data. To this end, PayStand does not retain your customer’s bank login information. Our bank login technology uses username and password to authorize the transaction (much like a pin code would authorize a debit card transaction), but this information is not stored on file. Bank login is the most secure way to initiate eChecks, because your customers can update their passwords with their bank at any point in time. Only the person with control over the account password can actually validate payment, and this password can be changed as little or as often as your customer prefers. Several banks also include a multi-factor authentication process which requires the initiator know the answer to key security questions.

eCheck is included at no extra charge for all PayStand subscribers

We invite you to check out how PayStand’s eCheck feature by requesting a demo today. You can set up your PayStand to accept eChecks exclusively or alongside credit cards, with or without passing along the fees to your customer. Whichever permutation you decide to go with, turning on PayStand’s eCheck is likely to lower your transaction fees overall.