Colin,
I applaud you guys on your efforts. It is really back to the math.
Do these "costs" add up to more than the revenue lost when you take the steps you take to basically guaranty good checks. For the majority of paysites in this business the answer is no.
This is called throughput. It is no different than a CC company scrubbing like crazy.
Sure, there are a lot of paysite owners that cry and whine about how ACH works and there are always things that can be done to address that on a merchant by merchant basis. Most of these merchants react this way more on emotion or principal than economics.
We have the means to verify DL and SSN, force email activation and even do micro deposits if a merchant wants it. We have been around in the industry a long time.
But, usually once a merchant understands that we charge on cleared checks, that we provide the tools to eliminate bad checks without losing throughput and that we can originate more ACH than our competitors with little risk, they see the light.
I am heading to the Keys to go spear fishing. When I get back we can talk about it some more.
