Ever since we entered the digital age, processing payments has been a part of the economy since day one. As the online revolution sprung forth, another opportunity presented itself in the form of online processing. The two main forms of processing are
credit card processing and
ACH processing (check processing).
As our busy lives shifted into the age of plastic over checks, the rise in electronic swipe machines that could handle the new form of payment became prevalent. And thusly, forms of electronic payments have advanced with online processing. Processing a credit card online is very simple because its the same exact process. You enter in the credit card number (or swipe the card if you have one available), and the information instantly gets sent to your payment gateway where the funds will be dispersed accordingly.
Online checking or ACH processing is harder contrived, but necessary to online processing. You dont want to deny anyone one of your products simply because you dont accept their form of payment, right? ACH processing is still the same process it is waiting behind an older couple at the grocery store while their arthritic hands sketch out the cost on the check. The wait for the full 7 days to process is still there, the process, unfortunately hasnt been sped up.
Its important to take this into account if you want to refund someone. Checks take 7 days to process, thusly if someone comes to you and wants to return an item 2 days after they paid for it with a check, you wont have their money for another 5 days. If you initiate the refund, then that means the money is coming for your bank account. Ive had a lot of people call me up wondering what was going on with the refund process. I told them to look at it as if you are sending an envelope to someone containing 5 dollars. The person you are sending the money to also sends you 5 dollars. However, you decide to overnight the envelope containing your 5 dollars, while the other person sends it ground shipping. At the end of the exchange, both people will have the same amount of money, but they receive it on different days.
Its also important to realize that by initiating a refund via checking, that it takes another 7 days for the refund to come to them. Whereas with a credit card they can get the money the same day. Its important to explain this to the person that wants to return the item and they have used a check. Most likely they wont understand how long it takes checks vs. credit cards and theyll get mad at you. Its important to remember that its not your fault and calmly explain the facts. If they are still not satisfied, you can refer them to a government website that explains it to them.
