When you offer electronic payment transaction, you are exposed to risk such as fraudulent payments or use of unfunded e-checks. These risks may put your business in peril because you may incur large transaction losses which could affect your financials. You can effectively reduce transaction losses and boost risk management capability by using electronic check verification technology. If you are going to accept ACH payments, then you can use the ATM Verify system to minimize transaction risks.
Check verification using the ATM Verify system works in real time. This means you can instantly determine if the checking account is valid and has funds available. The reliability of electronic check verification is guaranteed especially if your businesses accept ACH check payments. The verification system harnesses the wide network of banks and financial institution that utilize the ACH payment processing method. By simply integrating the ATM Verify check verification system into your payment processing methods, you can effectively reduce risk faced by your business. That is because you can instantly verify the integrity of the check before accepting it.
The procedure used for electronic check verification is very simple. All you have to do is to input the banking information provided by customers on your ATMVerify. For example, if you are offering ACH payment processors in your ecommerce site or as part of your payment collection system, the customer will provide banking information for you. You can now verify the account before you proceed with the actual payment transaction. This step provides you with an easy and convenient method to avoid fraud and bouncing e-checks. Verification works in real time which means instant and accurate information can be generated by the verification system within seconds.
The verification system has three levels of alert. Once you input the information of the customer account in the verification processor, the system will notify you whether the account is positive, negative, or unknown. A positive alert tells you that the customer has an existing account in good standing and that the e-check bank account has funds. A negative alert means the account is non-existent, not funded, or currently in bad standing. This notification will enable you to decline the payment thus saving you from the transaction cost that will be charged against your account. An unknown status means that the account of the customer is not included in the verification network. So, you can encourage your client to enroll the account in the system.
Businesses lose a lot of money from failed transactions. Every time you use your electronic payment processor, your account will be charged with a transaction fee. If the transaction fails, then you lose money in the process. That is why if you are going to accept ACH payment processing system, you should use its check verification technology in order to reduce losses and minimize the risk to your business. This is also the reason why the check verification system can also be considered as your tool for effectively managing transaction risks.
Entrepreneurialism in business is the driving force behind success. While everyone may naturally associate entrepreneurialism with business, they are not necessarily linked concepts - a business person may not be an entrepreneur, while an entrepreneur might not be the finest example of entrepreneurialism in practice. Nevertheless it is critical to encourage this behaviour, for the health and well-being of the global economy.
Entrepreneurialism is all about taking risks. It's something of a clich?, but only because it's true. Without risks, business wouldn't succeed. Business wouldn't create jobs or pay wages. Without risk, business wouldn't get off the ground. That said, there's nothing in the entrepreneurialism handbook that says it isn't sensible to limit those risks as much as possible. In fact, limiting your risks in business is key if you want to gun for success.
For example, you can limit risk by the choice of business form you use. As a limited liability company, you can safeguard your personal assets against any company debts, allowing you to take more risks with fewer repercussions on behalf of your business. Short of fraud, or anything criminal, any activities that go awry might ruin your business, but they won't ruin you. However by trading in your own name, you are much more vulnerable should your business fail, and you could be personally risking your home, car and other assets against any business debts.
Likewise it is important to minimise risk on the financial side of your business. That means keeping a close eye on finances and cash flow, as well as maintaining a strict credit control policy to avoid too many bad debts and too much exposure to potential non-payment. Try to keep the money coming in and make a note of where and why it leaves - that way, you limit the risks of failing on a cash flow basis, which experts say is one of the most central reasons for new business failures.
Another particularly good way of limiting your exposure to risk in business is to strategically think about your business and its growth over the next five or ten year period. Grow your business only at a rate it can sustain and you will create a profitable, healthy environment in which your business might blossom and develop into something more substantial. Allow your business to stagnate, or pursue too violent a growth curve and you're creating a high-risk environment, in which your business might thrive or crumble with equal measure.
As a business person, whether or not you're brimming with entrepreneurialism, you shouldn't be afraid to limit your risk. You should be encouraged to take risks for the benefit of the economy and your own business success, but there's nothing to prevent a bit of common sense caution from helping to protect against the most serious causes of new business failure. Only if you can appreciate the risks and make alternative plans of action in case of failure can you be sure you're ready to do business with real money at stake.
Both Charles Maverick & Naz Daud are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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