Check Processing Solutions

Check Processing Solutions (Conversion & Guarantee)

Check Processing in the most unsophisticated form involves the person or business receiving the check manually and taking the check to their bank and depositing it.  From this point on, the way money moves between accounts is very similar to the way it does for the ACH process flow.

Click here to go back and review ACH processing

Electronic Check processing is exactly the same except by utilizing a service provider a business owner, or independent professional who routinely accepts many one-off checks can utilize an internet gateway or piece of hardware to transfer the check electronically.  Many B2B businesses, landlords, etc, receive checks on a regular basis of the same domination.  In this case recurring billing would typically be a more appropriate solution.  Click here to go to Recurring Billing.

Two common forms of Check Processing

• Check Conversion – Simple electronic conversion of check
• Check Guarantee – Electronic conversion of check with guaranteed deposit of funds

Check Conversion

Check Conversion also known as remote deposit capture allows you to accept customer’s paper check payments, then electronically process and deposit checks without having to go to your bank.

The benefit with Check Conversion is the time and energy saved in travel to the bank.  With some solutions Check Conversion also allows for the immediate authorization and approval of the debit from the customer’s account and a signature receipt much like a credit card transaction.  Special check reading hardware is required for this type of conversion however many dual machines that will both process checks and credit cards are available.

Check Guarantee

Check Guarantee is Check Conversion with the guarantee of funds for bounced checks.  This process typically involved a check reader and “image device” that captures a picture of the check and signature for use in potential disputes.  Service Providers typically charge percentage fees for handling the risk involved with these type of transactions.

The biggest difference with Check Guarantee is that “Electronic” checks which bounce are the responsibility of the processor, not the merchant.  This helps merchants save on individual deposit item charges, bad check fees, banking time and effort, deposit ticket costs, and cash flow delays.  Another big benefit with Check Guarantee is that it typically speeds up the process of electronic check conversion to between 24 and 48 hours.

Designing the Right Process for Accepting Checks Electronically

If you or your business routinely accepts checks or currently processing a large quantity of checks, Total Merchant Network will help develop an electronic check acceptance process that will help you save time, speed up funds transfer while minimizing cost.

Contact Total Merchant Network today for a free 30min preliminary needs analysis to help determine the right solution for your business.  Call us at 866.382.2819 or Click Here.