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Eliminate Your Paper Bank Deposits |
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Funds are Automatically Deposited into your Existing Bank Account.
Electronic Check Deposit - Convert paper checks received "by mail" or "in person" into electronic online NEXT DAY deposit.
Get More Info on Check 21 or
call us toll-free today at 1 866 608 6840
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for more information on our Check 21 solution.
What is Check 21?
Check 21 enables your company to implement the latest technology in check processing. You could actually convert a paper check received in the mail or at a payment location into an electronic check. The paper check is converted into an electronic image known as an IRD document and electronically sent to the receiving bank for presentment. You could literally make your deposits right from your own desk. Be your own Bank teller…
The electronic check is presented to the check writer’s financial institution and funds are transferred into the merchant’s existing bank account. The system can then provide a file used to update payment information in your in-house accounts receivable system, eliminating data entry.
Check 21 allows the merchant to avoid the time consuming processing of paper checks, banks run for deposits and data entry. In most instances checks submitted electronically are processed at the bank before other paper checks are cleared giving you quick access to valuable operating capital.
How Does Check 21 Work?
Merchant receives checks for payments of goods or services via mail or payment center.
- Check is scanned into the software, and data is transferred into the Check Software. Demo
- Check data is batched and transmitted to Creative Cash Flow Solutions for processing and presentment through the Federal Banking System.
- Check Writer’s account is debited, and cleared funds are deposited into the merchant’s existing account.
- Files are made available on our secure website for export into your in-house accounts receivable system.
Requirements
- Internet Access.
- Your choice of Scanner, see below. (from 1 to 90 checks per minute).
Let's be clear about one thing: Check 21 does not mandate check truncation; instead, it creates a new legal environment in which truncation can evolve.
It does this by sanctioning a legal replacement for checks, called the "substitute check," which can be generated from a check image file when the paying bank and/or the check writer insists on receiving paper rather than electronic check images as proof that a payment occurred and was settled.
Technically, substitute checks will need to be created by banks, according to regulations proposed by the Federal Reserve which implements the new law.
However, banks can enter into agreements with merchants (similar to the way things are handled in the ACH check conversion arena today) that allow merchants to capture check images at the point of sale and begin the truncation/electronic clearing process before those checks enter the inter-bank collection stream.
View more info on Check 21 or
call us toll-free today at 1 866 691 6840
(
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to speak to one of our representatives about what Check 21 solutions can do for your business.
It Beats ACH Check Conversion
POS truncation will prove to be a lot more popular than POS check conversion, for a variety of reasons. For example, a check imaged and truncated at the point of sale continues to be covered by check law even though it clears electronically.
In POS (ACH) check conversion, checks cease to be governed by check law because the payments, in reality, have been converted to electronic payments.
Federal and State EFT laws are more consumer friendly than check laws. Under ACH law, consumers have 60 days from the date they learn of a questionable transaction (presumably when they receive their monthly bank statement) to file a complaint with their bank. Check law allows consumers just 40 days to dispute transactions.
More checks are eligible for POS truncation in a post-Check 21 environment. Business checks, courtesy checks, cashiers' checks-any and all checks can be truncated. ACH check conversion is limited to traditional consumer checks.
Perhaps the most obvious advantage of POS truncation for merchants, though, is that truncated checks will clear and post more expeditiously than checks converted to ACH transactions. That means better availability and a better jump start on identifying fraudulent payments-a problem that is believed to be costing the merchant community $10 billion, or more, a year.
The ACH is a batch processing system. That means checks converted to ACH payments must be sent en masse by a certain cut-off each day (usually in the afternoon) to the bank that processes the items through the ACH. With truncation, a merchant conceivably could image and transmit a check payment to its bank at the moment of acceptance.
A merchant may choose (or have to because of technology constraints) to send truncated check images all at once. However, with truncation, a bank's cut-offs for check deposits can be much later than is the case today, because there's no transportation component to the deadlines. That means a larger share (possibly all) of a merchant's check deposits become one-day items.
In other words, when checks are truncated and electronically deposited, funds are posted to the merchant's account the very next day, even if the electronic files arrive at the bank after 9:00 pm. Most ACH payments post to merchant accounts two days after a check is converted at the point-of-sale.
The benefits of POS check truncation are too significant to ignore.
Benefits
- Concise Reporting On-line and in Real Time.
- In Most Instances, Electronic Deposits Take Precedence over Paper.
- Lower Transaction Fees.
- Lower Return Fees.
- Electronically Update In-house System, Alleviating Costly Data Entry.
- No Expensive Software to Buy.
- Accounting for Deposits Made Easier.
- Funds are transferred electronically.
- Merchant or bank does not have to process a single piece of paper.
- Centralized Bank deposits for multiple location companies.
- Files can be exported to update your In-house Accounts Receivable system.
- No lost or stolen checks to worry about.
- NSF checks will be reported within three (3) business days. Merchant can redeposit immediately and keep all fees.
- 24/7 monitoring of your account VIA our secure website.
- Checks submitted electronically, in most instances, take precedence over paper checks.
- Stored Images are Accessible 24/7
Check Facts
Some interesting stats on ACH transactions. From 2002-2003 the percentage increase in transaction type is shown:
- ARC (mailed payment check conversion) +718%
- POP (check conversion-POS) +22.5%
- RCK (NSF check recovery) +21%
- TEL (telephone) +176%
- WEB (Internet based) +198%
- PPD (consumer pre auth recurring one-time debit) -3%
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