Electronic Check Conversion: Electronic Check Verification
Use of Electronic Check Services are on an Upward Rise!
In today’s growing economy, things are inevitably changing within fractions of seconds. The change in payment methodologies over the time has given the corporate leaders a feel of which is the most risk free mode of payment. Although credit card usage is becoming the preferred method of payment, Checks at the current time, still lead the pack. Nearly twice the amount of growth in cash purchases and three times that of credit card growth. Nearly 61% of the buying public does not have a major credit card and 83% of all consumers write personal check while shopping.
Echeck Acceptance knocks down barriers to Ecommerce. With larger number of potential online shoppers reluctant to buy online due to concerns such as the possibility of credit card fraud, multiple alternate payment options have sprung up in the past years.
ACH and ECheck Payment are the most ideal modes of payment because they are virtually risk free, and also instantaneous, adding the convenience factor for busy businessmen. Check Services are programs that are implemented by businesses to assist them in quicker check processing, check guarantee, check collection and direct deposit. These options have eliminated the need for paper checks and have greatly reduced a business risk for fraud when accepting checks. And it’s also environmentally friendly compared to the whole process of creating paper checks from trees!
The most typical e Check Services are:
The entire process of check conversion is converting paper checks to electronic checks. There are two major types of electronic check conversion – electronic check conversion and electronic check conversion with check guarantee.
1) Electronic Check Conversion
Electronic check conversion electronically records the transaction through the check reader attached to the credit card terminal. Technology has made check processing services easier and faster. Electronic Check Conversion converts a paper-based check to an electronic transaction at the point of sale. It automatically declines a check if there is a problem with the account. This process helps reduce fraud as it is beneficial for businesses as they are aware of the negative marks in the last 90 days and decline the check.
2) Check Guarantee
This service is widely used by businesses along with check conversion. When a check your business accepts results in non-sufficient funds the check guarantee company will reimburse you the face value of the item depending on if it was accepted according to the guidelines they provided. These guidelines include things like whether the writers drivers license is on the back of the check, etc. If these guidelines are not followed they may refuse to pay, or if they do pay it may not be the entire face value. In certain situations they may debit your account later if they cannot collect.
3) Check Verification
Companies providing check services provide check verification along with check conversion and check guarantee. The process of check verification is highly beneficial, as it enables you to decide up front whether to take it or not by contacting the bank electronically to take the money instantly. This process of making a real-time query to a financial institution or check provider to verify the status of the account is quick and easy.
4) Check Collections
The most popular way to pay you when you own a small business is through checks. There are potential dangers to accepting traditional paper checks including the possibility of fraud or someone writing a bad check. While dealing with bad checks can be a pain, there are technological advancements that can make it easier for you to weed out the bad checks before they happen. Check collections providers can save you the hassle of chasing down the writers of bad checks, but you can often take a significant loss on the amount collected. ACH and eCheck are instantaneous, and virtually eliminate this risk.