Patrick Smyth Managing Director at iSmartCheck http://www.ismartcheck.com

Who still takes paper checks on a COD basis?  A lot of businesses do.  And we want to help them streamline.

Recently we had the opportunity to work with a new client who still took paper checks as the majority of payments for his business.  This particular client had been doing this for years with great success, and was hesitant to change.  More importantly, his customers were used to writing checks the old fashioned way and when polled, a large sample replied that security was a great concern.

Here are some of the reasons that we gave our client for moving from paper to our Check 21 Electronic System.

1.       Cash Flow – our client was able to increase his cash flow and receive funds the very next morning into his account versus three to five days later with his old method of collecting checks and depositing them into his bank.

2.       Instant review and control of funds before shipping – knowing where his funds were at all times allows this customer to ship with the knowledge that he won’t have to deal with a check bouncing days after the product has been received.

3.       Real Time reporting – our client knows has access to real time reports instead of having to manual enter data as checks are processed at the bank in paper for.

4.       Reduced NSF and Collections – Knowing that funds are available before shipping means our client will enjoy reduced chargebacks.  And Check 21 is unlike ACH where the customer simply makes a call and reverses a charge.  With our system, the onus is on the check writer to prove that a check issued by them was not legitimately done so.

5.     Better Security – There is a much lower probability of electronic fraud as paper checks provide more accessible information such as bank, signature, address and routing information; signature can be replicated via digital imaging.  Our system works directly with our banking partners and is transmitted over secure, encrypted software.

6.       More efficient – as our client moves into the digital world of electronic checks, we expect the migration for new channels of business to be an easy one as more and more end users move into the digital checking world.

7.       Sustainability – while there is a proactive reduction of paper check usage from financial institutions, banks and credit unions for many reasons, we like to point out that not using paper helps the environment.

The second piece of the equation was convincing our client that his customers would be ready to adopt this format in favor of one they had been using for years.  We highlighted some of the key benefits.

1.       No cost to customer for E-Check – that’s right.  There is no cost to the client’s customers.  In fact, they save money because the cost of writing an electronic check is free.

2.       Greater level of security vs. traditional paper check – Traditional financial instruments like paper checks are now as or more susceptible to scams and fraud than the online methods and most paper checks can be processed even without verification.  And, there is a lower probability of fraud as paper checks provide more accessible information such as bank, signature, address and routing information.

3.       More efficient – more consumers and business conduct transactions online now giving the control and ability to track and manage process.  And who needs to take time out from an important sale to go write a check when a delivery is made?

4.       Reduce costs – less usage of paper checks means that our client’s customers need to spend less time worrying about getting cashier’s checks or reconciling paper checks at the end of the month when they receive their statements.  With our system, an image of the check they wrote with a full descriptor appears on their electronic bank statement online.

5.       Sustainability – no paper flow is good for everyone, especially Mother Nature

Our client was so moved by our ability to change his business for the better that he has already referred us to new clients.  With our system, you will be sure to get the following benefits:

•       Improve Cash Flow

•       Modernize Reporting

•       Lower NSF and Charges

•       Better Security

•       Better Controls

Please visit us at www.ismartcheck.com for more information and feel free to call us anytime for an evaluation of your business!

About

iSmartCheck™ is an electronic check processor that provides a better alternative to expensive credit card charges. Our conversion rates are better and our fees are lower. Bottom line is that you will make more money. Our Check 21 solution offers the fastest, safest and most cost effective way to process electronic payments from an expanding customer base, and is experiencing rapid growth in the growing eCommerce and Payments industries.

Payment Options

Americans have sharply reduced their use of credit cards, and some analysts believe the trend will continue even after the economy has fully recovered.

In recent months, a number of polls have indicated that consumers plan to reduce their credit card use, take steps to decrease delinquent payments to lenders and conduct more of their holiday shopping with debit cards, cash and checks.

This trend was confirmed last month by the Federal Reserve Board’s 2010 Payments Study.

Separately, a survey by Javelin Strategy & Research found that 56% of consumers used credit cards in 2009, down from 87% in 2007. Credit card usage could fall as low as 45% this year, the report said

So unless you have options other that credit cards, you are not converting all that you can be.  We suggest you check out Check 21 by iSmartCheck.

The Commercial Customer Benefits

• Reduces the time it takes to process checks.
• Deposits can be made without leaving the office.
• Eliminates travel expenses and courier fees.
• Deposits can be made daily.
• Many banks have extended deposit cutoff times.
• Provides for faster access to funds.

The Industry Benefits

• Eliminates the risks associated with physically moving billions of checks.
• Improves efficiency and ensures stability of the U.S. check payment system.
• Facilitates, without mandating, check truncation.
• Reduces the overall cost of check processing.
• Streamlines the check collection and return processing.
• Capitalizes on existing technology.
• Promotes, encourages and enables image exchange.

The Financial Institution Benefits

• Accelerates settlements.
• Reduces the volume of physical checks.
• Reduces the number of times the physical check is handled.
• Facilitates rapid discovery of fraud.
• Allows for earlier or multiple transmission.
• Eliminates resubmits.
• Lowers clearing fees.
• Reduces check float.
• Improves collections.
• Promotes electronic processing of share draft returns.
• Accelerates receipt and processing of check collections returns.
• Enables potential increase in return check service fee income.
• Reduces research and adjustments.

Now let’s get back to some more tips on your site!

Displaying your wares

Displays at the end of the supermarket, called end caps, are considered prime real estate on the shopping floor. And products placed at eye level always have better margins.

When designing your website, think about placing these high margin items at the top of the page…

Build a loyal fan-base

Okay.  So you have this new customer and you want to get him to return.  And peeps, let me tell you that is the cheapest dollar in marketing you will ever spend.

Build a newsletter for one, and be consistent in sending it out every month or quarter.  Include discount codes or coupons, promote contests,

Customer Service

With the advent of smart phones, BlackBerries and instant messaging, clients expect answers right away.  Gone is the day of letter mail, and replying to correspondence in days and weeks.  However, just because a client emails you with questions or concerns, it doesn’t mean that you must answer immediately.

Buyers have different expectations for how and how quickly a seller should communicate with them and it’s becoming increasingly important for sellers to identify which leads to respond to first. For the seller, an indicator of the importance may be in how the shopper asks to be contacted. Email is the preferred response method of 63% of online shoppers while the phone is preferred by 26% of new shoppers. Of those who wish to be contacted by email, 47% viewed 10-24 hours as an acceptable response time. Those who preferred a phone call considered one hour or less as an acceptable response time.

But make sure you provide the correct answer.

However, when in doubt, use my patented (sort of)  4/24 method. If you cannot provide a quick answer during regular business hours to a question, make sure that you notify your client within 4 hours that you have received their message and will reply with a complete answer within the next day.  Then, within 24 hours, you must endeavor to provide that answer.

A fast lead response does not win the sale. A prompt response that answers all of the shopper’s questions by their preferred method of communication (phone or email) will result in higher conversion rates.

Well these are some tips on converting!  Go get ‘em Tiger!

visit us at http://www.ismartcheck.com

Call to Action

No silly, not the video game, but a way that shoppers convert into customers by clicking on buttons or links that get them to the check-out stand.  A call to action should clearly tell users what you want them to do. They should include active words such as Call / Buy / Register / Subscribe / Donate.

To create a sense of urgency and a need to act now, these words can be used alongside phrases such as Offer expires March 31^st, For a short time only and Order now and receive a free gift.

Here are some brilliant tips we came up with through our wonderful skills at using this new tool called Google.

GIVE A DEADLINE FOR ORDERING
We’ve all received some sort of promotional material that has a deadline for ordering. The offer could end on that date.

Or you could use the deadline in conjunction with an upgrade or free gift. For example, order by the 15th and receive….

Also, try to make the cut off date in the same month as your materials will be received. That way, your potential customers know they only have a limited time to respond and they won’t fall victim to the “I’ll do it later” syndrome.

USE A DIFFERENT COLOR

Colour is an effective way of drawing attention to elements, especially if the rest of the site has a fairly limited palette.

MAKE IT BIG

The bigger your call to action, the more chance it will be noticed

HAVE A CALL TO ACTION ON EVERY PAGE

A call to action should not just be limited to the homepage. Every page of your site should have some form of call to action that leads the user on. If the user reaches a dead-end they will leave without responding to your call.

Your call to action does not need to be the same for each page. Instead you can use smaller actions that lead the user towards your ultimate goal.

ADVISE OF A PRICE INCREASE
People want to get in on a good deal. If your price is going up on a specific date, let your customers know. They’ll want to buy before your product’s price increases.

ESTABLISH A TRIAL/INTRODUCTORY PERIOD
Trial periods are a great way to get new customers. Offer a special deal, extra service or a lower price during your trial/introductory period.

FREE GIFT
Nothing attracts new customers like free gifts. As an added incentive for ordering, offer your free gift to the first 100 or 1000 people that respond.

“NO RISK” TRIAL
People want to know there’s no risk involved if they’re not satisfied with the product/service. Let new customers know they can cancel for any reason before the trial period expires.

“NOT AVAILABLE IN STORES”
Is your product exclusive to mail order? If your product’s not available in stores, be sure to tell your customers. They’ll know they can only order your product from you instead of visiting the local stores.

OFFER AN UPGRADE
One simple line can boost your sales. “Order within 10 days and we’ll upgrade you to the deluxe model.”

FREE SUPPLIES/ACCESSORIES
You’ve seen this technique used with computer sales. Buy a computer and receive a free printer. This works with a whole range of products. But be sure to include a date on your offer. This politely urges people to take advantage of your offer before time runs out.

No matter how you approach your own call to action, be sure to include action phrases:

Call Now. Toll Free. 24 Hours a Day. Mail this coupon today in the postage-paid envelope. Email your response card.

Be sure to avoid passive phrases like:

You know how to reach us. Call when you’re ready to order.

Give your customers the perks of responding immediately. They’ll grab their wallets. You’ll see an increase in profits.

Next time we will talk about Payment Options

Kathryn Kozak – iSmartCheck

You have an awesome product that people are genuinely interested in.

You have priced yourself to be competitive.

But you aren’t making sales…why not?

Old School techniques

Before the web, there were ridiculous looking places where you could actually go and touch the merchandise.  Really! No seriously, you could actually go and touch the product…and in some cases, ever try it on!

Marketing specialists in these brick & mortar stores know all about ambience and product placement.  Some even hire olfactory specialists to design scents that will attract buyers.

And even lighting can make a difference.  Been to a casino in Vegas?  Look at the carpeting, it is designed to keep your eyes looking up instead of avoiding all those fun games.  By the way, ever seen a clock in a casino?

Site design

The most important thing is to build a site that fits your buyer.   If you are attracting female housewives, a picture of Pam Anderson might not be cricket.  Choose motifs and themes that work for your target demographic.  Check out http://cssmania.com/ for a whole host of templates.

Clear colors, no clutter and simple graphics are best.  And get your message across clearly and concisely.  People are impatient and want to know what you have in the first paragraph.  Did you know that newspaper editors compile the entire thought of a story into the first paragraph?

Focus on what’s important by keeping ads for other sites off.  Are you building a website for a business that sells one specific product? If so, make sure that’s the focus of the home page.

Make sure your site loads quickly – no flash intros, no heavy graphics, no backgrounds music.  Have a look at http://www.secretsites.com/do_dont_part1.jsp for some really great tips on do’s and don’ts.

And remember, that if you have any links on your site, make them pop-up so people don’t navigate away from your site.  The last thing you want is to spend money on someone else’s site!

Site Architecture

Your home page is like your haircut.  It’s the first thing people will notice.  Sure, your hair looks great spikey with gel and pink highlights, but how appealing is it to that gal your trying to pick up who is dressed like she was an extra on Happy Days.

Keep it simple and well organised. The last thing you want is people getting lost on your site like they are in the enchanted forest, so provide a site map link at the bottom of each page.

Even better, build a site that is easy with buttons like Buy Now – Check Out – contact us.

Your readers shouldn’t spend 30-40 seconds trying to find a contact or about page. They also shouldn’t have to click through three pages just to get to a sign up form. Get the important things out in the open. For the items that aren’t required to have a strong focus on your website, you might want to invest in a search box, and a lot of templates now have it built in.

Next time we will talk about Calls to Action

Kathryn Kozak – iSmartCheck

Why are some merchants not offering this to their US customers? A geographic market that is built upon the check philosophy. This the question I will try to answer while simultaneously providing some additional information on the eCheck process, how to get approved for both high risk and low risk merchant accounts, case studies by industry, best conversion techniques and most likely some rants!!

Stay tuned and enjoy our glimpse into the online banking world.

Interested in more information? Contact us at info@ismartcheck.com or visit www.ismartcheck.com.

There are many reasons why we love this payment method but here are our top 5.

1) Customer Familiarity – People still pull out their checkbooks when paying for groceries and other common daily tasks. Customers trust checks. The Check21 electronic check solution is based on a commonly understood payment method that people and businesses are comfortable using.  Everyone knows how a check works and there is nothing new to cause transaction abandonment at the point of sale as opposed to other, more complex payment systems.

2) Funds Clear Faster –  Faster clearance equates faster payment into the merchant’s account and the faster the product is delivered or deposited for the customer.  Unlike ACH options, electronic checks are not regulated by NACHA and the myriad of rules and regulations associated with this payment method enabling a more efficient process.

3) No Chargebacks – Checks are much harder to reverse. Once cleared, a check is very difficult to reverse or charge-back which is limited to cases of true identity fraud.  Unlike credit card and ACH transactions that can easily reversed by the payer after the transaction has cleared, checks require a significant effort to reverse.  A check-writer wishing to reverse a paid check must physically go to their bank and pick up a fraud affidavit. The affidavit must be completed, signed in front of a notary under felony penalty of perjury for falsifying an affidavit punishable by up to 10 years, have the notary sign and affix their seal, then take it back to their back for review.  The check-writers bank must then submit the request for refund to the merchant’s bank, and the merchant’s bank decides whether or not to refund.  Instances of check reversals are extremely rare.

4) Lower Fees – Fees for electronic checks are considerably less than other payment methods.

5) Customers Never Leave – The Check-writer data collection occurs at the merchant’s website, or other user interface determined by the Merchant (eg. payment gateway or ecommerce shopping cart provider).  The check-writer does not have to leave the merchant’s domain unlike many other alternative payment brands.

Interested in more information? Contact us at info@ismartcheck.com or visit www.ismartcheck.com.