Adult Payment Processing

Adult Payment Processing is not limited to only credit card and debit card transactions.  Merchants have increasingly been turning to alternative methods to processing transactions. One of the largest adult payment processing segments has been electronic payments through checks. Check processing services has attracted merchants by providing long term, stable accounts with lower transaction fees.  Customers have also been attracted to making payments using checks as it simplifies their finances by reducing credit card transactions and lowering credit card bills.

The 2 types of Check Processing Services are:

Adult ACH
Adult Check 21

Adult ACH Processing, also known as the Automated Clearing House, is an electronic network used in the United States for financial transactions.  Every year the ACH Network handles billions of transactions that account for everything from bill payments to payroll  transactions. An ACH transaction is a simple electronic transfer of funds between 2 financial institutions.  ACH transactions are monitored and regulated by the financial institutions that are members of the NACHA organization.  While the Federal Government does not oversee these transactions, their Federal Reserve member banks account for about 60% all ACH transactions.  Guidelines for these transactions are strict and closely monitored.  Financial Institutions and Merchants are subject to any fines or fees assessed from NACHA or the Federal Reserve.

Adult Check 21 Processing is an alternative payment solution for financial institutions.  The Check Clearing for the 21st Century Act (Check 21) was put into effect in 2004 as an alternative solution for our vulnerable ACH system. Check 21 was designed as a way to reduce the dependency financial institutions have for physical checks by allowing for the electronic processing of checks.  Digital images of checks are created and then used between banks instead of sending physical checks.  Many merchants have opted for Check 21 due to the less stringent guidelines that ACH transactions follow.  This has allowed for merchants to process a wider array of transactions without having to be concerned about having payment accounts closed.

Accepting Check Payments

ACH and Check 21 provide both reliable and affordable options for merchants looking for adult payment processing services.  Depending on the business’ billing model, Check 21 might be a more suitable solution for the merchants needs.  Working with a qualified payment processing company, merchants should be able see their options and determine the best solution for their needs.

Payment Processing FAQs

For more information on check processing services, check out answers to some frequently asked questions from the governing bodies.
Federal Reserve Check 21 FAQs

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