Accepting E-Checks: Making the Switch to Electronic Transaction Management

Technology has changed the methods for accepting various forms of customer payments both in person and online. E-checks are a particular advancement which can be very advantageous to your business. An electronic check is created by converting a paper check provided at an establishment. You may be questioning how a paper form of imbursement can be converted into electronic payment method. Today, machines are utilized to accomplish this conversion. The written check is read and stored by this equipment. It is then processed in a daily batch just as a credit card would be. The machine verifies the account validity as well as stores the information for batch processing. Checks are processed faster when this form of processing is utilized. A conversion may occur when the check is written or after it is received by mail. As a business you are responsible for notifying customers of conversion. Most businesses post a sign or include the information online to inform consumers about accepting e-checks.

How Are E-Check Transactions Handled?

E-check processing is commonly referred to as an ACH or Automated Clearing House transaction. It is very similar to a wire transfer, but allows for larger sums to be accepted by your business. Transactions typically process within two business days unless an error should occur with the bank or customers account. Your business can utilize this payment form to safely convert paper checks, deposit payroll directly, or receive bank drafts online. These methods reduce the amount of work required to settle payments at the end of the day. You can eliminate daily bank visits for depositing paper checks. More than one option is available when you want to convert to this electronic process. AVPS can help you find the best option for your particular business and get you on your way to receiving safer customer payments. Set up can be fast, easy, and very rewarding to both your business and customers.

We are a third party provider service which can take on all of your processing needs. A terminal is utilized for customer information entry. You log onto a terminal to enter all customer information. This can include their name, address, transaction amount, bank routing number, account number, and the check number. The transaction is then sent to the Federal Reserve to be authorized. Each e-check is stored within a database used for both processing and monthly report viewing. Submitted payments cannot be altered or cancelled. Once the Federal Reserve clears the transaction, the amount is then deposited into your business account. Checks can be rejected initially or after clearing. These rejections are commonly referred to as chargebacks. We can assist your business in keeping these occurrences at a minimum. Unlike credit transactions, electronic checks cannot be completed immediately upon payment. Instead it takes an average of one to two business days to complete the transaction. Learning the process behind accepting e-checks can be helpful as you add this convenient payment option. Our staff is available to explain each available choice and will be glad to assist you in selecting a fitting solution for your business.


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