Pharmacy credit card processing can be expensive, especially as banks become stricter with pharmacy merchant account guidelines. Most online pharmacies have had to shut down because of a lack of payment processing services. Other pharmacies have resorted to using high-cost solutions through 3rd party providers. Pharmacy echeck processing is the best way for a pharmacy to accept payments and reduce their risk of losing payment processing services. E-checks are similar to paper checks, but are handled in a full electronic manner. Funds are quickly debited from the customer’s account, allowing businesses to process and ship orders in a quick process. Today, most personal transactions are done by through checking accounts; whether it’s echeck or debit card. Fortunately for customers, they will not notice a difference while the merchant will see a decrease in payment processing fees.
Partnering with Allied Payments
- Allied Payments is a leader in eCheck processing for higher-risk businesses. Focused on finding reliable solutions, eCheck payments have consistently remained a stable and secure means of accepting high-risk payments with no exposure to the payment card networks.
Accepting Pharmacy Echecks
Over the past few years, it has become increasingly challenging for pharmacies to set up payment processing services, especially with affordable rates and fees. These changes have created a demand for alternative payment methods, specifically, check processing services.
Many of the troubles facing online pharmacies are in direct response to increasing government regulations imposed on Visa and MasterCard. Fines and other penalties faced by these companies have only made it harder for online pharmaceutical merchants to operate.
Another challenge facing online-based pharmacies is the banks and payment processors underwriting the merchant accounts. Many of the fines and restrictions faced by Visa and MasterCard are directly passed to the payment processor or bank. This is been the major reason why underwriters have become stricter with the businesses they accept.
Using eChecks has become one of the best ways for merchants to avoid many of the challenges and problems facing credit card transactions. Aside from easier terms and fewer restrictions, the fees charged to merchants for eCheck is significantly lower than what others would pay to accept credit cards.
Using echecks, customers will receive the same type of reporting as a credit card merchant account. Detailed lists of the various types of transactions includes sales, refunds and chargebacks along with details settlements help merchants manage their finances.
With nearly all of the same functions in about the same amount of time, except with much lower costs, the use of e checks has taken off in the online pharmaceutical industry.
How to Accept Pharmacy eChecks
Similar to pharmacy credit card processing services, accepting a check online can be simple. There are a few ways merchants can easily accept pharmacy echecks.
Payment Gateway:
Used by most e-Commerce merchants today, a payment gateway allows customers to input their payment information securely for submission to the processor. The customer is shown a blank check and required to fill in all of their information. This is a preferred method used by merchants since all information is maintained by the customer and processor.
Virtual Terminal:
Merchants that obtain customer banking information from the customer directly can use a virtual terminal. Through the echeck virtual terminal, payment information is securely transferred to the echeck processor for immediate authorization.
Batch Upload:
Merchants that collect customer banking information can send the payment information from their computer. Uploading a file with complete customer payment information, the echeck processor can convert each transaction into an echeck and process the sale.
Once eCheck information is received, it normally takes between 3-5 days to clear depending on the bank. Merchants will be alerted of a cleared transaction by receiving a notification of “collected” by the payment processor. Merchants will experience lower fees than accepting credit cards and consumers will not have to pay foreign transaction fees. The risk of merchants is also substantially less with eCheck as chargebacks are more difficult for customers with shorter time frames and more steps.
Pharmacy eCheck Payment Gateway
Payment gateway integration of eCheck services is possible with almost every major payment gateway provider. At Allied Payments, we have the ability to integrate with; WooCommerce, Shopify, Magento, Opencart and Prestashop among others. This flexibility allows merchants to simply add eCheck to their shopping cart functionality without any major changes required.
All payment gateway transactions are fully secure, eliminating the risk posed to merchants and customers. Using SSL encrypted servers helps merchants protect themselves from any type of hacking that could jeopardize their customer’s account information. Most customers today know that they should only provide sensitive information online through SSL protected webpages.
Using a PCI Compliant gateway is also important when maintaining the integrity of a payment gateway. When connected with an SSL website shopping cart, a PCI Compliant gateway will protect the transfer of sensitive banking information from the shopping to the gateway. Merchants that work with a non-PCI Compliant gateway provider run the risk security breaches and significant losses due to fraud.
The API provided to merchants working with Allied Payments allows for quick website integration into the payment gateway. This API integration will allow online pharmacies to accept orders directly from their website for automated check processing. Without the need to manually enter orders or upload transactions on a daily basis, merchants can focus on fulfilling orders and marketing rather than managing payments.
Using a payment gateway will also give merchants access to the echeck virtual terminal. The virtual terminal is commonly used by merchants handling phone and mail order sales. This means that customers do not have to go on the website to enter their payment information, rather the payment information can be accepted at the time of sale and charged immediately. This can also help mitigate risk by having every order verified by the merchant to curb fraud or other potential problems.
Merchant Concerns with Pharmacy Payment Processing:
One of the largest problems that pharmacies face when accepting payments is fraud. While most payment gateways have their fraud protection programs, this does not always prevent losses. These losses can come in the form of chargebacks, and in great enough quantity, they can lead to merchant account termination.
To combat chargebacks, many merchants have resorted to various practices to help reduce instances of fraud. These fraud prevention programs include ways to check a customer’s IP against their billing location or other transactions from different users. Stopping fraud saves both banks and the pharmacies large sums of money and can help merchant accounts remain open.
In many instances, the use of a virtual terminal is directly tied to fraud. While most merchants will work to ensure that the transactions they are putting through are completely legitimate, the instances of theft and fraud of customer account information has become troublesome. This has restricted many payment processors from offering any type of virtual terminal solution to pharmacy merchants unless they have a proven track record.
Start your Pharmacy eCheck Processing
Contact Allied Payments today to start your echeck processing services. We have solutions for both domestic and international merchants looking to process payments in the USA. Our team of Pharmacy eCheck professionals will help you get answers to your questions and the services that you need.
Frequently Asked Questions (FAQ)
What is pharmacy eCheck processing?
Pharmacy eCheck processing is a secure payment solution that allows pharmacies—especially those categorized as high-risk—to accept payments directly from customers’ bank accounts via electronic checks (eChecks). This method helps reduce chargebacks and improves approval rates for online and mail-order pharmacies.
Why is a pharmacy considered high-risk for payment processing?
Pharmacies, particularly online or mail-order ones, are often labeled high-risk due to factors such as high chargeback ratios, regulatory scrutiny, controlled substances, and potential fraud. Traditional banks may decline these businesses, making specialized high-risk eCheck processing services essential.
Can eChecks be used for both online and retail pharmacies?
Yes, eChecks are a flexible solution that works for both online and physical pharmacy businesses. Customers can authorize payments online or in-store using their checking account information, offering convenience and reducing reliance on credit cards.
Is pharmacy eCheck processing safe and compliant?
Absolutely. Reputable eCheck processors like AlliedPay use secure, encrypted gateways that comply with NACHA and banking regulations. They also provide risk management tools to ensure your transactions are safe and fully compliant with federal and industry standards.
How long does it take to set up eCheck processing for a pharmacy?
Most pharmacies can be approved and set up with eCheck processing within 24 to 72 hours, depending on documentation and underwriting requirements. AlliedPay offers fast onboarding with minimal friction to get your business up and running quickly.
What are the benefits of using eChecks for pharmacy payment processing?
eChecks provide several benefits for pharmacies:
- Lower processing fees compared to credit cards
- Reduced chargeback risks
- Increased customer trust
- Faster settlement times
- Broader approval for high-risk merchants
Do customers need special accounts to pay with eChecks?
No special accounts are required. Customers only need a standard checking account and routing number to make a payment via eCheck. It’s a simple and familiar process for most U.S. customers.
Can I use eCheck processing as a backup to credit card processing?
Yes. Many pharmacies use eChecks as a primary or backup payment method to maintain steady cash flow, especially when facing disruptions in credit card processing due to high-risk status or merchant account freezes.
Will eCheck processing help my pharmacy reduce payment declines?
Yes. Since eChecks pull funds directly from a customer’s bank account rather than relying on card networks, they often result in fewer declines, especially for high-ticket or subscription-based pharmacy orders.
How can I apply for pharmacy eCheck processing with AlliedPay?
You can start by filling out a simple application on our contact page. Our team will review your business details and guide you through the fast, secure onboarding process.
They’re a well-run, trustworthy company, and every time I’ve reached out with a question, they’ve been thorough and thoughtful in their responses. You can tell they truly care about supporting their clients.
Our business is often considered “high-risk” by many processors, so finding the right partner can be challenging. These guys made the whole experience smooth, and I feel very confident working with them.
If you’re a business owner looking for a solid, reliable merchant services provider—especially if your needs are a bit more specialized. I highly recommend them.
Thank you Charles
