With Check21 being the wave of the future, as an entrepreneur, business owner or valuable corporate personal, I'm sure you've asked yourself these questions. Is it worth changing from paper checks to online checks? Will the costs be comparable?
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Facilitate Customer Payments
Our system can facilitate payment from more customers by creating authorized checks drawn from any account in the Federal Reserve banking system, providing the broadest reach of any payment system. Every credit card holder has a checking account but not all checking account owners have a credit card or sufficient available credit to make a desired payment. Debit cards and ACH also cannot reach all checking accounts. All government accounts, most business accounts and many personal accounts do not have debit cards associated with them or are either ineligible for ACH conversion or the check-writer’s financial institution does not participate in ACH. The Federal Reserve reports that 42% of checks written are ineligible for ACH conversion.
No Transaction Limit
There are no limits to the size of the transactions. All credit cards are limited by credit or other limits, and ACH transactions are capped at $25,000.
Faster Access to Funds
Transaction funds clear faster, our checks clear in 1-2 sec. and is settled into your account within 24 hrs.* *Med-high risk – 5 days dependant on underwriting and risk assessment of merchant.
Business principal, if you can clear checks faster, you can build your company faster.
Paper Checks laws carry over to Online Checks
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.
Deposits can be made daily
Extend deposit windows are no longer tied to your bank’s operating hours or ATM collection times.
Enhanced Risk Management
Better risk management capabilities through faster return item notification and next-day access to returned items images online, means that you can collect sooner.
| QUICK SUMMARY OF GENERAL CHECK21 BENEFITS
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.
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Increased security by requiring an increased amount of customer data and enables the merchant to provide data on the check to enabling easy contact if there is any question as to the details of the charge.
Reoccurring transactions
Reoccurring Monthly Payments
You may set up a void check to accept reoccurring monthly payments to your account, similar to a direct debit. This is very useful for reoccurring payments, such as advertising and financing payments.
Customer Familiarity
Customers are familiar with how checks work and this concept is easily transferred over to online – ask for demo to see how easy the process is for a customer.
Consistent Branding and Customer Flow
The check-writer does not need to leave the merchant’s domain unlike many other alternative payment brands.
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