| If you are a merchant with an existing echeck | | | | scans checking accounts and gives warning message |
| processing service, you learn that receiving paper | | | | against customers that have issued bad checks in the |
| check payments is a breeze. Just convert the checks | | | | past. |
| to electronic form and then click " Send". In a matter of | | | | 2.) CHECK GUARANTEE |
| days, you will soon have the full check amount | | | | For a very minimal fee, check guarantee is a service |
| deposited in your account. Under ideal condition, of | | | | where the checks you received are checked against |
| course. Meaning, the customer transacts honest | | | | a negative database and thus protect you, in real time, |
| business with you and has adequate funds in his | | | | against bad and fraudulent checks. |
| checking account. | | | | It offers an extra layer of protection for the |
| But wait . What if the check contains no sufficient fund, | | | | merchants. |
| or that it is a fraudulent one? These things happen | | | | 3.) CHECK COLLECTION |
| daily in the business world, you know. Some are done | | | | This is another type of useful echeck processing |
| inadvertently because sometimes the check writer | | | | service. Suppose you have a customer who issues a |
| does not know his or her checks no longer have | | | | check payment for you. At the moment of writing that |
| sufficient funds. Others are perpetuated by deceitful | | | | check, the customer has enough funds in his checking |
| customers. You will incur losses if you are not alert to | | | | account. But when the bank tries to debit the amount, |
| these unfortunate incidents. | | | | his checking account no longer has sufficient funds. In |
| Protect yourself against such unlikely events by | | | | other words, the check bounces. |
| subscribing to additional echeck services. These are : | | | | If you have check collection service, the bank will |
| 1.) CHECK VERIFICATION | | | | forward the bounced check to your processor. The |
| A customer walks in to your store, selects items, and | | | | processor, in turn, will send it to the collection team |
| then issues a check as payment for his purchases. | | | | who will personally get in touch with the issuer through |
| Unknown to you, this particular customer has a history | | | | mails or telephone calls to collect the face amount of |
| of issuing bad checks. If you don't have check | | | | the check for you. |
| verification service, you would have gladly accepted | | | | 4.) CHECK RE-PRESENTMENT |
| the check and incur losses. | | | | If you receive any bad checks, your bank will send |
| But with check verification service, you run the check | | | | them to your processor. Your echeck processing |
| into your POS terminal and, in a matter of seconds, | | | | company will present the check again for two times, or |
| you will receive a warning message that this particular | | | | re-present them, to the Automated Clearing House until |
| checking account has been placed on a red status. | | | | you get the payment. The amount is credited to your |
| You can then act accordingly based on that alert | | | | bank account. |
| message. | | | | Merchants will surely gain a lot by subscribing to these |
| Check verification service is basically running a check | | | | extra echeck processing services. |
| against a nationwide database of checking accounts. It | | | | |