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E-Chex offers three levels of Service Accounts: Check Verification, Electronic Check Conversion without Guarantee, and Electronic Check Conversion with Guarantee. For more information on which service account best fits your budget and needs, refer to the chart below.
Electronic Check Conversion Overview
Successful merchants offer the greatest variety of customer payment options. One of the most frequently requested is payment by check.
Checks have always been an expensive payment method. Merchants are required to fill out deposit slips, make trips to the bank, collect bad checks and suffer the loss if the check is uncollectable. Recently the banking system changed the rules that applied to how checks could be processed. These rule changes allowed checks to be converted into debit items at the point of sale. The local branch of the bank is now on the merchants counter top rather than on the street corner. With specialized POS equipment, check information is transmitted to a host computer and then the actual check is given back to the check writer. These simple changes have revolutionized the way checks are handled.
The successful merchant is not only interested in checks clearing but also in the ease of acceptance at the Point of Sale. The E-Chex program is virtually transparent to both the consumer and the sales clerk. Since E-Chex does not request basic information usually found on pre-printed checks, ID requirements are minimal, resulting in speedier check out times and improved customer service.
A check presented for approval is electronically transmitted to our files which function much like a credit bureau, to collect and disseminate information about abused checking accounts.
Declines only occur as a result of negative information on file. Merchants refer declined check writers to a customer service representative who is experienced at handling that type of inquiry with tact and diplomacy.
In the event the check is returned by the bank, the merchant will never know that is was dishonored. Once an approval is obtained from our host, the merchant is guaranteed the funds will be in their account in about 48 hours.
Within seconds our system will approve or decline a check. If we approve it and the check is returned, the merchant will remain 100% funded with no interruption in cash flow.
Processing Options
E-Chex has developed proprietary software for multiple processing options. E-Chex offers three ways for a merchant to accept a check.
Our negative check file, (NCIS), contains 15 million records of bad check writers from all over the United States. By accessing this information, merchants can economically expose bad check writers before they take a bad check loss. Merchants are required to keep the checks after VERIFICATION and take them to their bank for deposit. E-Chex does not guarantee VERIFICATION transactions.
All checks are processed through an electronic check terminal, which compares the check against the NCIS negative check file. If there is no match, the check is accepted for electronic deposit. If it is returned by the check writer’s bank, the check is resubmitted twice before being returned to the merchant. A printed, signed receipt and batch report are required for these transactions.
Checks are processed the same as in the ELECTRONIC CHECK CONVERSION program. The difference is that the transaction, once approved, is guaranteed and paid regardless of whether or not the check clears. (STOP PAYMENT excepted.) A printed, signed receipt and batch report are required for these transactions.
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Service Accounts
