Echeck Processing:3 Errors In Check Conversion

by Kay Fione       Sarah, 28, a mother of three, goes to a merchant shop called Kids' Store. This retail store subscribes to echeck processing service. This means that it accepts checks as payments. After getting the needed items, Sarah writes a check as payments for her purchases. The cashier scans the check using a check reader terminal, writes the word “ void” across the check, and returns back the check to Sarah. Then she issues her a receipt.     This is the basic scenario of conversion from paper check to electronic check format or echeck.     But what exactly is electronic check conversion? As can be gleaned from the above example, electronic conversion means that the information on the paper check – like its account number, check number and the name of the issuing bank-- are all captured and stored in an electronic format. This data is then converted into a computer file. From the computer, this electronic check file can now be sent over the Internet to withdraw the amount from your checking account. And this process usually runs smoothly without a hitch.     However, there are occasions when problems arise. Here is the list of possible errors in check conversion. <ol><li>INSUFFICIENT FUNDS Supposing you purchase an item-- a business leather briefcase-- from a retail store and pay using electronic check. The item costs $150 but you had only $149. After a few days, your retail store will contact you about the unavailability of funds in your checking account. The merchant will collect from you the full amount of purchase price plus a little penalty fee. </li><li>CHARGED WITH THE WRONG AMOUNT Let's continue the example in #1. The total purchase price is only $150. You have the receipt on that. But the merchant charges you $200 for the transaction and withdraws the particular amount from your checking account. In other words, you were charged with the wrong amount. This is a common error and you can something about it. You can report the incident to : Federal Trade Commission Consumer Response Center 600 Pennsylvania Ave., NW Washington, DC 20580 Tel. 877-382-4357 (toll-free) You can also contact: Board of Governors of the Federal Reserve System Division of Consumer and Community Affairs Washington, DC 20551 202-452-3693 </li><li>DOUBLE-CHARGED FOR THE SAME TRANSACTION Let's use the example in #2. You bought a business leather priced at $150. You issue a check as payment. But after a few days, you discover that the sum amounting to $300 was deducted from your checking account. Apparently, the merchant charged you twice for the very same transaction. If this happens, you can file a complaint at the above stated agencies. ( See #2). Just a reminder, though. These check conversion errors are not deliberately committed. These occur out of unintended slips, human mistakes, and other aggravating factors. These errors can be duly corrected. But as a whole, check conversion brings great benefits for customers as well as the merchants. ( 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. Miss Fione serves as business consultant for several echeck processing companies, including <a href="http://www.echeckprocessing.biz/">www.echeckprocessing.biz</a>. She loves snorkeling and writes business articles on her free time. Kay lives with her husband and four kids.)</li></ol><a href="http://www.onlywire.com/submit?u=http://www.echeckprocessing.biz/echeck_processing_3_errors_in_check_conversion.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>

Apply Now, Instant Approval!

News and Articles

more...