4 Unexpected Echeck Processing Issues And How To Deal With Them

by Kay Fione     Florence Lee subscribed to an echeck processing service. She's into ladies' shoes manufacturing, and her business performs well. From a direct seller, she now has several shoe outlets in strategic shopping malls. Her expanding customers clamor for a more flexible payment options like paying by checks. Florence obliged. She got an echeck processing service for her business. With it, she can accept checks from her customers. If the customers go to her shoe stores with their paper checks, the check reader equipment will simply convert the paper checks into the electronic format. In addition, customers can likewise pay checks directly over the phone by giving out pertinent check information. Those who have computers can also pay checks via the Internet by visiting Florence's online store and filling in the secure online order form with important check data.     Echeck processing greatly improved Florence's shoe business. She acquired additional customers, and boosted up her sales. All the while Florence thought that her echeck processing service would l go smoothly. But she was wrong. Several glitches happened along the way.     Here are some of the unexpected echeck processing issues and the solutions: <ol><li>CHECKS BOUNCE Just like in paper checks, echecks do bounce for one reason or another. If this happens to your business, don't panic. Your echeck processor will “ re-present” the bounced checks until payments are received. When this fails, and you have check collection service, your echeck processors will contact the customers and collect the unpaid dues. All you have to do is sit back and enjoy your favorite tea drink. </li><li>FAKE CHECKS Customers come in various types. There those who are honest and conduct business fairly. They pay with good checks. On the other hand, there are also a number of dishonest ones who try to outwit you with their fake checks. In order to prevent this, you should get check verification service. This is a low-cost type of service where all checks are scanned against a huge database. Problem accounts are identified. If you receive a fake check, you will immediately be given discreet proprietary messages through your check reader equipment. You can then turn down the purchase transactions. </li><li>CUSTOMERS DISPUTE CHECKS There are instances where customers dispute their check payments, claiming that these are unauthorized transactions. Now, don't go berserk when this happens. The customer has 60 days to file an affidavit to their respective bank. As soon as the bank receives the foregoing affidavit, the disputed amount will be immediately debited from your account. You can pursue your claim in the court, if you want. </li><li>CHECK PROCESSOR FAILS TO CONVERT YOUR CHECK TO ACH ITEM In the world of electronic check processing, all checks need to be converted to Automatic Clearing House format. ACH is a group of financial intermediary network that governs electronic checks for the past 25 years. Banks use ACH to send and receive electronic checks. Paper checks need to be converted to electronic check acceptable ACH item format so that it could be processed. There are instances, however, that your echeck processing company fails to convert your checks. When this happens, your processor will simply print a paper check payable to you and deposit it in your merchant bank. In a few days, the funds are deposited in your account. </li></ol>     (Kay Fione is an electronic banking authority with years of solid experience. She finished her Banking and Finance course as an honor student at the University of Minnesota. She currently works as an executive in an Australian bank. She also serves as a business consultant for several electronic processing companies, including wwww.echeckprocessing.biz. She loves snorkeling and writes business articles on her free time. Kay lives with her husband and four kids.)  <a href="http://www.onlywire.com/submit?u=http://www.echeckprocessing.biz/4_unexpected_echeck_processing_issues_and_how_to_deal_with_them.html;t=check%20processing;tags=Check%20processing" target="_blank" title="Add this Article to Onlywire"><img src="http://www.onlywire.com/i/onlywire.ico" alt="" />Add to Onlywire!</a>

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