Question about using E-checks for site payment
 

Is there anyone here using e-checking as payments for their websites? If so, how is the fraud / chargeback / nsf level doing?

We do EU direct debit which is similar except only for Europeans because many countries like Germany have done away with checks all together. We have very little fraud due to our verifying systems we have in place and we do have some chargebacks/nsfs. However, we have a fulltime staff in every country which fights every single one them... If you want to chat about what we can offer you just let me know... :pimp

One can simply use a valid ABA number along with a madeup account number to get through. There's no real-time verification for e-checks.

3rd party processors do some validation using various heuristics / blocklists, but that still leaves a lot that can get through.

Bottom line is use a 3rd party processor for echecks, and figure many bogus echecks will still slip through. And if possible, add some frontline fraud detection (IP block lists, site usage patterns, etc) prior to passing echeck transactions to the 3rd party processor.

Ron

My experience exactly.

Good info in this thread.