All the information you need to find a merchant account that best meets your needs !
     
     
graphic   graphic
 
   
  MERCHANT ACCOUNTS CREDIT AND DEBIT CARD PROCESSING E-CHECK PROCESSING ELECTRONIC COMMERCE E-COMMERCE WEB HOSTING OUR SERVICES
   
 
graphic   graphic


E-Check Processing FAQ

E-Check Processing FAQ

1 Can I accept checks over the Internet?
2 How can I accept a check over the Internet?
3 What is ACH?
4 How exactly is the money being moved?
5 What if the check is returned?
6 Will the money be taken back out of my account if the check is returned?
7 How long does it take for an electronic check to clear?
8 Will the funds be immediately debited from my account?
9 What will my bank statement look like?
10 Is this process safe for the consumer?
11 What if my customer advises their bank that the item was not authorized?
12 Is this process regulated by any government agency?
13 What is check verification?
14 What is electronic check conversion?
15 What is check collection or check recovery?
16 What is a check image?
17 What is check re-presentment?
18 Is it better to accept credit cards or checks online?
19 Why should I accept checks? Aren’t credit cards and cash enough?
20 What happens if the check processor is unable to convert my check information to an electronic ACH item?

Can I accept checks over the Internet?
Yes, most merchant accounts have the ability to accept checks over the Internet. Your customers enter their check account information into one of the payment forms used by our merchants and the check is then processed through the Automated Clearing House (ACH).

TOP

How can I accept a check over the Internet?
By simply capturing all of the information on your customers check and sending it to an Internet Check Processor, you can get paid electronically for the sale without having to ask for a credit card from your customer. Checking accounts already have electronic items submitted to them, such as insurance payments and other recurring billing payments. New rules on the use of the banking systems ACH Network allow a paper check to be converted into an electronic item and processed in the same way as other electronic items.

TOP

What is ACH?
The ACH Network is a financial settlement intermediary network used by banks to transfer funds to and from each other. The ACH Network has been used by banks for over 25 years and is a safe and secure payment system, processing billions of commercial transactions each year. Recently the ACH Network has introduced new rules that provide for more types of electronic uses of traditional checking accounts and 'checks'.

TOP

How exactly is the money being moved?
When the ACH/Check Processor submits your customer's check electronically for clearing, they also submit a Credit transactions assigned to your own bank account to pay you for the sale. Both of these transfers are accomplished over the ACH Network.

TOP

What if the check is returned?
Most ACH/Check Processors will automatically re-present the returned electronic check if the return is due to insufficient or uncollected funds. The more sophisticated services will also time the re-presentment to hit the checkwriter's account on the day after payday. Depending on the size of the item, some services will also call to verify the availability of funds prior to resubmission.

TOP

Will the money be taken back out of my account if the check is returned?
Depending on the service provider, the money may be taken back out of your account immediately, or you may be allowed to borrow, or float, the funds while the processor tries to resubmit the item to collect the funds. Other processors will not pay you until after the initial item has cleared.

TOP

How long does it take for an electronic check to clear?
Just as some banks will put a 5 day hold on deposits you make, it may take 5 business days to receive a returned item. There is no official notification that an item has cleared with the ACH System; rather, the lack of a return within the 5 business days can be construed to mean that the check has cleared.

TOP

Will the funds be immediately debited from my account?
No, check writers will continue to benefit from some of the float of a paper check, since the electronic check is processed through the banking cycle in approximately the same amount of time as traditional paper checks. Typically electronically checks are presented to the ACH system a day or more sooner than paper items, so that the consumer may see the item hit a day sooner than with a paper item.

TOP

What will my bank statement look like?
A complete description of the transaction is included in the check writer’s bank statement for reconciliation purposes, including check number, merchant name, nature of the payment, settlement date and amount. It will appear with other electronic payments, such as direct payroll deposits or ATM transactions.

TOP

Is this process safe for the consumer?
Companies that process payments electronically (checks, credit cards, ATMs) must follow government guidelines. In case of an error or dispute, consumers have 60 days from the posting date to notify the bank, the same time frame they have today with paper checks. Check writers retain the same rights they currently enjoy in disputing fraudulent items posted to their account.

TOP

What if my customer advises their bank that the item was not authorized?
Consumers that claim that an item was not authorized must file an affidavit with their bank stating this explicitly. Once this has occurred, and the item is returned to the check processor, the merchant will be debited the amount of the item. No further ACH submission of this item is allowed. Any claims by the merchant must be pursued in court or by other means.

TOP

Is this process regulated by any government agency?
The electronic check conversion process is governed under Regulation E and UCC 4, which govern all electronic processing and check transactions.

TOP

What is check verification?
Check verification is a low-cost service that verificies checks you might accept from a customer. Checks are verified against a database, and with ECHO's XpressVerification service, you benefit from our proprietary database, National Check Network(R) (NCN). NCN contains 17 million negative records and 70 million positive records against which your check will be confirmed. If the account number corresponds to a problem account (an account where checks have bounced and not been repaid) you are notified through the system response. Read about XpressVerification on our Web site, or visit our NCN site for information on NCN and its application for collection agencies and major accounts.

TOP

What is electronic check conversion?
Electronic Check Conversion, or "ECC" greatly reduces the cost, time, and risks associated with check acceptance at the point-of-sale (POS). It converts paper checks into electronic items, so you don’t have to deposit checks at your bank. This means that you get your money faster and you can detect problems with specific accounts sooner.

TOP

What is check collection or check recovery?
Check collection (sometimes called recovery) is a service that uses traditional means to collect on checks that have been returned unpaid. When your merchant accountreceives the returned check, some merchant account roviders will make telephone calls and/or send letters to collect from the consumer.

TOP

What is a check image?
During the electronic check conversion process a digital image that is available on-line at a secure Web site. While the transaction data is processed through the Automated Clearing House for fast and secure processing, a parallel process at the point of sale captures an image of the check and stores it in the MICR reader/check imager. The check images are then transmitted to the on-line image repository where merchants can retrieve them by logging in with a PIN number and User ID. Merchants generally use the images for two purposes: 1) collection of bounced checks; 2) copying the customers name and address information from the check for use in a mailing list or other marketing purposes.

TOP

What is check re-presentment?
Check re-presentment is an automated, consumer friendly, electronic process to collect returned checks. For the merchant, the check acceptance process at the point of sale is virtually the same. You’re not bothered with collection issues, instead, your bank mails us all your returned checks. We re-present them up to two times electronically through the Automated Clearing House (ACH). The second re-presentment is on the 1st or 16th of the month to increase success rates.
You are paid 100% of the face amount of the check upon collection. Funds are electronically credited to your account twice a month.

TOP

Is it better to accept credit cards or checks online?
Accepting credit cards and checks on-line both have advantages. Credit cards are generally the most widely used payment choice for on-line transactions. Therefore, accepting them means you open up your business to the widest possible market of buyers. Consumers like credit cards because they are secure, offering an easy means of protecting themselves from unscrupulous merchants. Plus, they have the obvious advantages of allowing merchants to put a purchase on credit while lending increased credibility to your business.

On the other hand, checks continue to be the most popular form of payment in the off-line world, and are increasingly popular on the Internet. In 2001, $11.5 billion was processed from Web sites through the Automated Clearing House, 54 million items, and the number is growing fast. Millions of U.S. households do not have credit card accounts, so selling to this group means providing checks as an alternative.

TOP

Why should I accept checks? Aren’t credit cards and cash enough?
Since the 1970’s, pundits have talked about a “checkless society” where payments are all made electronically. Nevertheless, this is far from true even today. The Federal Reserve Bank reported that more than 50 billion checks are written per year. Another study showed that 71% of consumers plan to write more checks or about the same number this year as they did last year.

Obviously, people want to continue using checks for various reasons, including the cash management discipline they provide, avoiding the debt-increasing factor of using credit cards, and, if nothing else, habit. As a merchant, you want to accommodate your customers’ choice of payments, so clearly accepting checks is important for you.

TOP

What happens if the check processor is unable to convert my check information to an electronic ACH item?
This may occur in a very small percentage of cases and for various reasons. In those cases your merchant account provider will usually print a paper check draft with your account information and deposit it just like a regular check. You will be paid electronically once the paper item has cleared.

TOP

 
2002 FindMerchant - Merchant Account Info, All Rights Reserved
 
 
ADVANCED TIRE & AUTO, INC.