Businesses today have five basic choices for traditional check processing. Those options are:
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Do nothing - accept checks with the risk of bounced checks and fraud.
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Accept checks and forward bounced checks for ECR (Electronic Check Recovery).
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Accept checks with Check Verification with ECR.
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Owner accepts checks with Guarantee Payment of check.
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Owner accepts checks with Point-of-Sale to Electronic Conversion.
Verification helps merchants separate good check writers from bad check writers allowing them to adopt a liberal check acceptance policy that will benefit both the merchant and their customers. Through a National Database that reduces the likelihood of fraudulent transactions verification enables merchants to make informed, reliable decisions regarding each check their business sees.
Benefits
- Reduces the risk of fraudulent transactions.
- Enables a more liberal acceptance policy.
- Enables customization of verification services to meet your needs.
- National databases with real-time information.
Converting a paper check to an electronic check is a process called truncation. It allows merchants to check for available funds, place "soft" or "hard" holds on funds (like a debit card) or even receive quicker access to funds. Truncation is gaining acceptance as a preferred method for processing retail checks. Save on individual deposit item charges, bad check fees, banking time & effort, deposit ticket costs, & cash flow delays.
Electronic Check Conversion Features
Seamless Process at Point of Sale:
- Customer presents personal check.
- Clerk keys the dollar amount and swipes check.
- Upon approval, customer signs sales draft authorizing electronic funds transfer.
- Clerk voids check and returns to customer.
- Electronic check is deposited at the end of day with credit and debit card transactions.
Electronic Check Conversion Benefits
Speed Access to Funds:
- Checks are electronically converted.
- Funds are available within two business days.
- There is no waiting to take the deposits to the bank or for checks to clear.
- Eliminate the hassle of recording paper checks and making manual deposits
