Merchants are always skeptical about accepting E-checks due to the risks associated with check acceptance. Here Check Conversion procedure helps the merchants as well as customers by offering a faster, safer and cost-effective mode of check payments. More and more customers are accepting check conversion as a quick and easy technique to pay for products and services.Check conversion reformulate paper checks into electronic transactions–also known as e-checks. Check conversions are securely processed in real-time. Funds from authorized payments are deposited automatically into merchants’ accounts, usually within two business days. Following steps are involved in the conversion process : – a. When a customer make payment through a paper check at the point of sale, the merchant uses a magnetic ink character recognition. MICR is used to scan the check and capture bank account information. Some point-of-sale terminals also offer imaging capabilities, which capture address information for added security.
b. The terminal electronically sends the account data and amount to be paid to the check service provider for verification. c. The check service provider approves or declines the transaction. In case if it is approved, the customer signs a sales receipt authorizing the merchant to debit the amount from customer’s account.d. After the procedure, the check is franked, in simple words it is marked or stamped as processed–and voided and is returned to the customer, along with a copy of the sales receipt.In as little as two business days, an automated clearing house (ACH) deposit posts the amount of the sale to the merchant’s direct deposit account.E-Checks are advantageous for the Merchants in a number of ways. Like : – a. All converted checks are verified and that too without any extra charge. Merchants are guaranteed their funds from approved transactions, because returned checks are the responsibility of their check service providers.
b. Electronic batch closing eliminates the possibility of errors and impair the total time spent in preparing and reconciling deposits. c. And finally it results in improved cash flow due to constant closing and settlement.d. Merchants can either connect MICR check readers to their existing equipment/terminal or enhance their payment equipment by using terminals with integrated check readers that offer increased processing power and automatic check franking and reduces the excessive cabling at the point of sale. It also results in reporting features that facilitate bookkeeping.E-check acceptance enables businesses to maximize their sales, customer service and results in high profitability. It minimizes the risk and costs by incorporating check readers into point-of-sale processing solutions. Therefor, it hits your bottom line by increasing business and improving customer loyalty.To get information about Merchant Account Credit Card Processing Please visit www.paynetsystems.com
