Echeck Processing 101

by Kay Fione Almost all business establishments nowadays accept credit cards. It's the way to go to enhance your business. However, there are people who do not like to own plastic money and instead prefer to pay by checks. Catering to this group could greatly expand your customers' base and dramatically improve your business. That's why you need electronic check processing. This service allows you to accept checks payments from anyone, convert these checks to the standard electronic format, and send them over to your processor via the Internet. In a few days' time, the funds get deposited in your account. It's that easy and convenient. But just some reminders, though. Before you start accepting checks payments, you need to sign up for an e-check processing service from an electronic check processing company. This service provider acts as a link between your customer and your bank account. It facilitates the transfer of funds from the customer's checking account to your merchant account. Here' s an example of a basic e-check processing transaction: <ol><li>A customer enters your store and shop for items. </li><li>He proceeds to the counter for payment, and issues you his check. </li><li>You run through the check in a POS ( Point-of-Sale) terminal to scan for fraud. If it is a good check, the terminal screen will tell you with a message so you can safely proceed. ( If the check is fraudulent, you can simply turn down the purchase transaction.) </li><li>Assuming that the check is good, you will then take a snapshot or “ image” of the check using the POS terminal and then covert the “ image into an electronic file or electronic check. </li><li>You send the electronic check file to your e-check processing company using your Internet-connected computer. </li><li>After this, you take out the paper check from terminal, stamp it “VOID” , and then return the paper to its owner. </li><li>The customer leaves your store happy with your goods. </li><li>Your e-check processing company will send or “ present” the e-check to the Automated Clearing House or ACH. The ACH approves the e-check. ( In case there's no sufficient fund, your e-check processing company “re-present” the check to the ACH twice on the ensuing month until you can collect the amount of the check. This “ re-presentment” service is free of charge). </li><li>In 2-3 days, the face amount of the check is deposited to your account. </li></ol> In a more advance setting, the customer can simply call you by phone , make his orders and then pay with his check by phoning in his check information. You just key in these information on a designated online form in your PC and then send it to your e-check processing provider. If you are on e-commerce, the process is basically the same. A customer visits your site. Then he browses and picks the products he wants. After that, he proceeds to the virtual check-out counter where he pays with his electronic check by filling up a secure online form with his pertinent check information. This completed data goes to your echeck processing company for approval. Upon confirmation of the transaction, the amount is deposited in your account within two working days. Just don't forget to deliver the purchased items to the customer. ( 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 business consultant for several echeck processing companies. 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/echeck_processing_101.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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