Electronic Check Presentment
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by Elizabeth Murrow
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<font face="Arial, sans-serif"><font size="2">Electronic
Check Presentment is the capturing of an electronic image of a check
at the point of a sale. The information taken is transmitted
electronically to the bank followed by a paper. Simply said, it is
the electronification of the paper-based check-clearing process. </font></font>
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<font face="Arial, sans-serif"><font size="2">ECP
works this way. An image of the check is taken at the point of sale.
It is then processed online by banks and clearinghouses. The
depositing bank then sends the paying bank all necessary information
such as the details of the check, the amount, account number and the
check number. </font></font>
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<font face="Arial, sans-serif"><font size="2">Using
an electronic check presentment will help you speed up check posting
and return information. It will also allow for saving costs in
processing, at the same time, reducing the risk of fraud and solving
issues related to insufficient funds. ECP uses a secure connection to
make sure that data processed is safe and intact. </font></font>
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<font face="Arial, sans-serif"><font size="2">Although
electronic check presentment offers a low cost solution in processing
checks, it does not completely eliminate the use of paper checks.
Instead, it offers a more efficient and quick method of clearing
checks. Check 21 Act permits banks to send a digital image of the
paper check which helps eliminate and save up a lot of money involved
in clearing billions of checks every year. </font></font>
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<font face="Arial, sans-serif"><font size="2">However,
in order to have an efficient and secure electronic check
presentment, the use of a strong and fast digital signatures are
needed. Paper checks are scanned through a machine every minute and
each image must be signed to ensure that the information on the check
can not be denied later. In order for the process to work
effectively, participating banks must be in agreement with regards to
exchanging electronic data and root certificates that will verify the
signatures. </font></font>
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<font face="Arial, sans-serif"><font size="2">Electronic
Check Presentment facilitates a rapid check processing communication
of clearing checks. This type of service has been in use for several
years. Like other processes, ECP has its own rules and regulations.
Ask your local providers about this service and how it can benefit
your business. </font></font>
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(<font face="Arial, sans-serif"><font size="2">Elizabeth
Murrow currently works for a payment processing solution company.
Being in the business for quite a long time now, she has been
continuously sharing her knowledge through various lectures and
blogging, including <a href="http://allaboutecheck.wordpress.com/">http://allaboutecheck.wordpress.com</a>
and http://www.echeckprocessing.biz. Born and raised in California,
Elizabeth now lives in Australia with her husband and two kids. She
likes to travel during her free time.)</font></font>
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