Changing Paper Checks to an Electronic Item Benefits You and Your Customers

Now you can take advantage of electronic commerce to increase employee productivity and to improve customer service.  Electronic Check Conversion™ (ECC) converts a traditional paper check into an electronic item at point-of-sale and processes it through the Federal Reserve's Automated Clearing House (ACH).

Electronic Check Conversion™ saves time and money while reducing the risks of NSF checks.  A check is now as hassle-free as a credit card transaction.  It's more efficient and secure.  And it lets you focus more on your business and taking care of your customers.

Ending the Paper Trail with ECC™

During the 80s, technology revolutionized the payments world.  No one uses a manual imprinter to accept credit cards any longer.   Instead, merchants handle credit card transactions through EFT (Electronic Funds Transfers) using VeriFone or similar terminals.  Paper checks have remained non-automated...until now!

Here's how ECC™ works:  When a customer makes payment with a check, it is stamped as an electronic item.  The paper check is then run through a check reader where MICR (Magnetic Ink Character Recognition) information is captured.  The amount is entered on a terminal keypad.  The check is approved, a receipt is printed for the check writer to sign authorizing the electronic conversion.

The transaction is electronically transferred through the ACH system where funds are debited directly from the customer's account and deposited automatically into the merchant's account usually within 48 hours.

Electronic Check Conversion™ FAQs

Q:  How is Electronic Check Conversion™ different from a debit transaction?

A:  Debit transactions are processed through ATM networks, where a card number is required to link to the correct bank for payment.  Check conversion employs existing infrastructure using MICR data from the check and running it through the ACH network.

Q:  Does this mean checks will go away?

A:  Absolutely not.  Consumers write more than 60 billion checks in the U.S. annually.  Experts believe that total will grow to 70 billion by the year 2000.  Checks are here to stay.

Q:  How have consumers responded to check conversion?

A:  With thousands participating in multiple programs, the National Automated Clearing House Association (NACHA) has indicated that consumers have been "neutral to very positive" toward check conversion.   Broad acceptance of this system is viewed by industry leaders as natural progression.

A:  No.  Unlike debit cards, funds are moved within 48 hours of the purchase.

Q:  Will the customer's checking account be secure?

A:  Yes.  By law, financial institutions regard customer information as highly confidential.  A traditional paper check is handled by many people in the payment process before it ever gets to the bank.   Check conversion means only the customer and merchant ever view account information.

Q:  What if a customer has a problem with his or her statement?

A:  By regulation, a customer has up to 60 days from the statement date to notify the financial institution of any discrepancy.

Electronic Check Conversion™ Works Harder!

Faster check processing.

Funds can be centralized, while converted at each retail location.

Checks are electronically deposited in your account.   No more trips to the bank.  No more deposit slips to complete.

NSF and other returned items are discovered faster, expediting the collection process.

Quick detection of check fraud stops bad check writers.

Eliminates lost or stolen checks before deposit.

Check verification at no additional cost.

Reports can be customized to meet the needs of the end user.

Reporting and tracking from database accessible to the merchant 24 hours a day, seven days a week.

Electronic Check Conversion™ with Check Collect™

When your customer pays by check which is converted to an electronic item at the point-of-sale, occasionally those items may "bounce" even though they are verified for approval.  With Electronic Check Conversion™, you have an added advantage:  our automated electronic recovery system called Check Collect™.

Eliminates NSF bank fees.

Collected and released checks are paid weekly

Helps retain your customers with "behind the scenes" recovery rather than annoying calls and letters.

Your customer avoids the embarrassment of dealing with a "bounced" check!

Licensee of National Bank Drafting Systems, Inc. 

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