Automated Clearing House /
Accounts-Receivable Conversion
Q: What happens if an ACH transaction is
returned for having insufficient funds (NSF)?
A: You may electronically re-deposit that item
for payment two more times.
Q: How do I know if an ACH transaction is invalid
and unacceptable for payment?
A: Access to on-line reporting is available at
all times and tracks the status of every submitted
transaction.
Q: What fees will I pay?
A: A transaction fee that is based on monthly
volume. In addition, a monthly gateway fee will allow access to
on-line reporting so your managers can track all payments and
returned items.
Q: Can I enroll my customers/debtors in scheduled
payment plans using ACH Processing?
A: Yes, you can schedule recurring
payments.
Q: Can I use ACH Processing to make payments to
my clients?
A: Yes, that processing is available.
Q: How are the ACH transactions submitted for
processing?
A: Through 128-Bit SSL servers, the highest
security level for Internet applications currently available. For
the best results, you should have a high speed Internet connection
for your computer network.
Q: What do I do with the paper checks after they
are imaged?
A: The paper checks must be destroyed within 14
days of imaging, and the images must be kept for a minimum of two
years.
Q: Will I have to change my bank account?
A: No bank account change is necessary. Funds
will be deposited electronically into a designated bank
account.
Q: What length of time is required to start
processing?
A: Once we receive a completed application, you
could be processing electronic transactions in as little as 48
hours.
Q: How much training is necessary?
A: Training will require approximately one
hour.
Q: Can you integrate with my current system so my
employees don't have to change anything?
A: We can integrate with any system. Any output
file from your system will need to be NACHA-compliant and may need
some programming on your end to become compliant.
Q: Do I need any special permits or licenses to
use ACH?
A: You need only an Internet connection. No
special licenses or permits are required.
Check Verification / Conversion
Q: What equipment will I need for check
conversion?
A: You will need only a check-reader imager that
can be attached to your existing credit-card terminal.
Q: What happens to the paper check after I
convert it?
A: The check is stamped "ACH Processed" and is
returned to the customer. That person then signs a receipt, similar
to the one issued by a credit-card company, giving authorization.
It must be retained in your records.
Q: Do my customers still receive their normal
float-time on checks?
A: Customers will realize a two-day float-time in
most cases.
Q: What does the verification service do?
A: It matches the check-writer account
information and driver's license number against a national database
of negative check information in order to verify if the
check-writer has any current outstanding NSF checks.
RCK Check Re-Presentment
Q: What is RCK check recovery?
A: RCK stands for "represented check." The
dishonored check is imaged and turned into an electronic copy that
is then returned to the bank electronically to request
payment.
Q: Who regulates this industry?
A: RCK transactions must follow the rules and
regulations concerning procedures and processes established by the
Federal Reserve Board, the UCC, and NACHA.
Q: What types of checks can be resubmitted?
A: The check must be a personal one, less than
$2,500, and fewer than 180 days old. The check must have been
returned for insufficient or uncollected funds, and it cannot be
presented to the bank more than three times if electronic and two
times if paper. Third-party, stop-payment, or altered checks are
not allowed to be processed electronically.
Q: How many times can I presented a check to the
bank for collection of funds?
A: A check can be presented a total of three
times for an electronic collection or two times for a standard
paper method.
Q: How will the electronically resubmitted check
appear on the customer's account statement?
A: The account statement will contain the
following information: the merchant's name, the word "redepcheck,"
the check amount, and the check number.