"CONVERSION AND GUARANTEE” ELECTRONIC CHECK PROCESSING
• How does "ECC" work?
Electronic check conversion converts the
paper check to electronic format at the earliest point in the check flow
— the point of sale.
Authorization and settlement is similar to that of a credit card. The
process is as follows:
The check’s MICR line is read by an imaging check reader and converted into an electronic image. The image is then stored in the imager for deposit at time of settlement.
• Benefits of
Electronic Check Conversion
> Minimizes financial loss due to check fraud
>
Enhances customer
satisfaction with reduced wait time for check acceptance
> Increases cash flow with two-day merchant funding as opposed to
five-to-seven days for paper-based check processing
> Saves money by eliminating returned items and associated NSF fees
> Ensures daily funding for retail merchants with auto-settle feature
Merchant FAQ’s
• Why is Electronic
Check Conversion so popular?
Converting paper
checks to electronic check is a natural process, using prove technology
to make checks faster and easier to process.
It is also consistent with the support by the Federal government and
industry groups to develop and implement electronic transactions.
•
What are the
benefits to me as a
Merchant?
> Improves Cash Flow
and Cash Management
> Minimizes
Reconciliation Efforts
> Eliminates
Bank Fees
> Eliminates
Returned Paper Checks
> Funds are
available within 48 hours•
• What are the
benefits to my Customers?
Converting the
Customer’s paper check to an electronic transaction will not affect
their “float”, since the electronic check is processed
through the banking cycle in the same amount of time as a traditional
paper check. Reconciling bank statements is easier, since
more detail information is provided on the statement.
• Why
must the Customer sign the Authorization Slip?
Like credit cards, the Customer’s signature makes the
transaction promissory and authorizes Global to process the transaction
electronically.
• But is this process
safe for my Customer?
Companies that process
payments electronically must follow government (NACHA) guidelines. Your
customers will retain the same
rights they currently possess when disputing fraudulent items posted to
their checking accounts.
• How many images will
the equipment hold?
Approximately
150 images
• What if
the equipment won’t read the check?
The transaction can still be guaranteed via a separate key
within the credit card terminal. The check must be deposited and not
returned
to the customer.
• Can I void a
transaction?
Yes, it works just
like your credit cards. If the batch containing the original transaction
is still open you can void the transaction.
However, if the original batch is already closed, Merchant should follow
internal refund/return procedures as credits can not be
generated electronically.
• Will
Electronic Check @dvantage reduce the time it
takes to in closing out my cash drawer?
Absolutely! Terminal reports are generated at batch close.
Reports include the total number of converted items, voided items and
the
grand totals. No more running tapes to total the electronically accepted
checks.
• What happens if the
consumer wants to return
merchandise
and requests a refund?
If the consumer wishes
to return merchandise for a refund, the Merchant should follow internal
return/refund procedures.
Note: If the original batch is still open, the original
• What is
the average length of time, to process each
type of check transaction?
Electronic Check @dvantage = 30 seconds, from the time the
POS dial terminal connects to the host.
• Does
Global Guarantee all types of check that
cannot be converted to electronic
items?
No. Money Orders, Credit Card Checks, Cashier Checks,
Traveler’s Checks, U.S. Treasury, Federal Reserve Checks, Federal Home
Loan
Checks, State or Local Government Checks, etc are consider “Third Party
Checks”. Third Party checks cannot be converted to electronic
items, nor does Global guarantee these items. Business Checks cannot
currently be converted to electronic items, but Global does provide
Guarantee or Verification for these checks. Check signer must be on the
account, otherwise the check constitutes as a “Third Party Check”.
Check Writer FAQ’s
• Who can charge my
account with an electronic
check?
Only Merchants to whom
you have written a check for a purchase or service can process the check
electronically. Merchants must also
require that you sign a slip authorizing the transaction to be
electronically processed.
• Who gives the
Merchant permission to
electronically charge my account?
Your signature does.
Merchants are required to get your signature on an authorization slip at
the same time of your purchase.
• How
will this transaction appear on my bank
statement?
A complete description of the transaction is included in the
check writer’s bank statement for reconciliation purposes. It includes
the
Merchant’s name, settlement date and amount. It will appear with the
other electronic payments, such as direct payroll deposits and
ATM transactions.
• When will the debit
hit my account?
Generally, your
account will be charged in the same amount of time as a paper check
(approximately 2-3 business days).
• Will my
financial institution charge me a fee for an
electronic check?
At this time there is no known financial institutions that
are charging check writers for ACH transactions.
• How exactly is the
money being deducted? What is
the process?
The check is processed
at the point-of-sale as a standard Automated Clearinghouse Electronic
Funds Transfer (EFT) item. The ACH Network
is the national electronic funds transfer network connecting the nations
13,000 financial institutions. The ACH Network has been
operation for 25 years and processes over 5 billion payments annually.
This program is a natural extension of the capabilities of ACH.
• Can my check be used
more than once?
No, just like the
traditional paper check, each electronic check represents a single
purchase transaction.