Bounce Back - Electronic NSF Check Recovery

Check by Phone

Auto Pay

Electronic Check (eCheck)

Internet Check

Check Conversion

Merchant Processing

Bounce Back - Electronic NSF Check Recovery...

(Q) What is Electronic NSF Check Recovery?

(A) This refers to the process of resubmitting NSF checks electronically through the ACH (Automated Clearing House) Network. The submission of a check is referred to as an RCK transaction.

(Q) When was this process approved and by whom?

(A) NACHA (National Automated Clearing House Association) approved the new banking law that allows merchants to represent NSF checks electronically on March 10, 1998. The rule became effective on September 18, 1998.

(Q) What can a merchant expect in improvement of recovery rates with electronic check recovery compared to traditional methods?

(A) Merchants using electronic check recovery have reported increases in recovery rates from 30% to 85%.

(Q) What legal regulations and guidelines apply to electronic check recovery?

(A) Electronic check entries are subject to the applicable NACHA Operating Rules, Uniform Commercial Codes (UCC) and Regulation CC. However, RCK transactions are originated by check and are therefore exempt from the provisions of the Electronic Funds Transfer Act and Regulation E.

(Q) What type of checks can be processed as RCK transactions?

(A) Checks that indicate on the face that it was returned due to "Non Sufficient Funds", "NSF", "Unrecovered Funds" or comparable language.

(Q) How many times can the NSF item be presented electronically?

(A) A total of (3) presentments are allowed. The RCK entry can be sent twice after the original deposit from the merchant.

(Q) Is there a dollar limit on the amount of the check?

(A) Yes. Checks with a face value of $2,500.00 or less may be processed.

(Q) Is there a time limit on checks that can be represented as RCK items?

(A) Yes. Each RCK entry has a time limit of 180 days from the date of the check.

(Q) What items are not eligible for representment?

(A) The items listed below are not eligible: - Drafts drawn on the Treasury of the U.S., a Federal Reserve Bank, a Federal Home Loan Bank, and state or local governments. - Postal Service money orders. - Items not payable in U.S. currency. - Items indicating on its face that it was returned for reasons other than "Non Sufficient Funds", "NSF", "Unrecovered Funds", or comparable language. - Checks drawn on Business accounts. - Checks over $2,500.00. - Third party checks and unsigned demand drafts.

(Q) How do I forward the returned checks?

(A) For small to mid-size businesses there are two ways to have the returned checks forwarded to our processing department:

1. Complete a Returned Checks Authorization Form and fax to us for quicker processing.
2. Copy the front and back of the returned check and fax it to our Processing Department at 702.450.9389.

(Q) How do I sign up for Bounce Back - Electronic NSF Check Recovery?

(A) Call i.e. Elec Chk toll free at 866.450.9388 or click the link below.

Check by Phone...

(Q) Is Check by Phone different than eCheck?

(A) Yes. Check by Phone is the process in which the check information and authorization for payment is obtained from the customer over the phone. However; instead of utilizing Elec Chk's online eCheck program to process the check...you simply forward the payment form to our Processing Department and we do the work for you.

(Q) What can I expect by accepting check payments by phone?

(A) An immediate increase in sales for starters. - Check by Phone allows merchants to process check payments without waiting for the physical check to arrive. - Merchants experience faster deposit of funds. - Your customers experience quicker shipping capabilities. - Any transactions returned as "NSF" are automatically forwarded to our Verification Team and resubmitted for payment at no cost to the merchant.

(Q) How long does it take for me to receive payment?

(A) Funds are electronically deposited into your merchant account on the 3rd business day following the transaction date.

(Q) How do I keep record of which deposits are for which sales?

(A) A transactions report is e-mailed to the merchant for each electronic deposit that is made. The transactions report reflects the following:

• A list of all transactions that were processed in that batch.
• All transactions are marked either 'Cleared' or 'Returned'.
• The report will reflect the 'Total Deposit' which is simply the 'Returned' items subtracted from the 'Cleared' items.

(Q) How do I know if a payment has been returned "NSF"?

(A) It will be relfected on the transactions report.

(Q) How is the "NSF" item handled?

(A) The 'Returned' item is forwarded to our Verification Team where funds are verified and the returned item is resubmitted for payment utilizing Bounce Back electronic NSF check recovery.

(Q) Will this slow my sales consultants ability to take more calls?

(A) Our clients have experienced a significant increase in sales versus a significant decrease in call response. Please review our Check by Phone Form and see for yourself how easy the process is.

(Q) How much does each transaction cost?

(A) This mainly depends on volume, how soon a merchant would like to get started, and how long of an arrangement is agreed upon. For further inquiry please Contact Us.

(Q) How do I sign up for Check by Phone?

(A) Simply call Elec Chk toll free at 866.450.9388 or click the link below.

Auto Pay...

(Q) Is my payment guaranteed each month?

(A) Although Auto Pay does not guarantee that your customers will have sufficient funds, implementing Auto Pay eliminates 'the checks in the mail' dilemma. This service has been widely adopted by Utility Companies, Insurance Companies, Finance Companies, Mortgage Companies...etc., to streamline the payment process each month.

(Q) Is the customer held accountable for all payments?

(A) Absolutely. If a customer's payment is 'Returned' for non-sufficient funds, the item is forwarded to our Verification Team where funds are verified and the item is resubmitted for payment utilizing Bounce Back electronic NSF check recovery.

(Q) How soon do I receive payment?

(A) Funds are electronically deposited into the merchant's account on the 3rd business day following the transaction date.

(Q) What do I do if my customer does not wish to use Auto Pay?

(A) That choice is up to the discretion of the merchant. Elec Chk allows all of our clients flexibility when using any of our services.

(Q) What happens if the payment is 'Returned' due to non-sufficient funds?

(A) If a customer's payment is 'Returned' for non-sufficient funds, the item is forwarded to our Verification Team where funds are verified and the item is resubmitted for payment utilizing Bounce Back electronic NSF check recovery.

(Q) How much does each transaction cost?

(A) This mainly depends on volume, how soon a merchant would like to get started, and how long of an arrangement is agreed upon. For further inquiry please Contact Us.

(Q) How easy is it to schedule payments for my customers?

(A) It's as easy as 1,2,3...

1. Complete the Auto Pay Form scheduling payment arrangements with your customer.
2. Fax the completed and signed Auto Pay form to Elec Chk at 702.450.9389.
3. (3) Start receiving your automatic payments electronically deposited into your merchant account.

(Q) How do I sign up for Auto Pay?

(A) Simply call Elec Chk toll free at 866.450.9388 or click the link below.

Electronic Check (eCheck)...

(Q) What is eCheck?

(A) Electronic Check or "eCheck" is a web based check entry program that allows merchants to input check payments they have received from their customers...typically check payments by phone.

(Q) What businesses benefit the most from using eCheck?

(A) Any mid-size to large business that operates in a call center environment where the phone representatives receive check payments for goods and services from their customers.

(Q) Are there any bank fees charged to my account for returned checks?

(A) No. Since the checks are transmitted as electronic items via the ACH Network through the Federal Reserve System to the customers bank for processing, any returned items are submitted back to the originator...Elec Chk

(Q) Why is eCheck so effective?

(A) eCheck:

• - Processes check payments within 48 hours.
• - Eliminates all bank fees related to returned checks.
• - Allows merchants to deposit their check payments on-line without making a trip the bank.

(Q) How do I sign up for eCheck?

(A) Simply call Elec Chk toll free at 866.450.9388 or click the link below.

Internet Check

(Q) How do I know a sale has occurred?

(A) Each evening, via e-mail, we will send a report listing all transactions for that day.

(Q) How is a rejected transaction handled?

(A) The transactions report will reflect any rejected transactions such as "Non Sufficient Funds" or "Account Closed". The report will contain the necessary information for you to contact the customer to follow-up with the sale.

(Q) Will my customer be returned to my site after the purchase?

(A) Absolutely. You will provide us with the exact page location (e.g. "http://www.MYSITE.com/store.html") for the return. You are in complete control.

(Q) How are funds deposited into my account?

(A) Funds are electronically deposited into your existing bank account via the ACH banking system.

(Q) When are funds deposited into my account?

(A) Your funds will be deposited into your checking account within 48-72 hours of the on-line transaction excluding weekends and holidays. Elec Chk utilizes the NACHA electronic network which transfers and clears funds between banking institutions on behalf of online merchants and their customers. Each transaction takes approximately 48 hours to clear. We strongly suggest that merchants wait five days from the initial transaction date before shipping any goods to ensure that the payment has cleared and there are no reversals.

(Q) How will I be billed for the Internet Check service?

(A) On the 1st of the month you will receive, via e-mail, a monthly report reflecting your current amount due and on the 5th of the month your checking account will be debited.

(Q) Is the sale transaction secure for my customers protection?

(A) All transactions occur on our bank's secure server using Secure Socket Layer (SSL) connection and 128-bit data encryption. The customer's bank information is deleted once the transaction is processed.

(Q) What information is "verified" in the verification process?

(A) Verification will ensure that an account is open and does not have a reason for denial. Verification does not guaranty that sufficient funds are available for the transaction. Extensive Negative File. We use pooled data with daily updates and transactions amounting to over 1 million updates a month and work with a consortium of check verification companies to ensure database accuracy and integrity. Positive Data File. This full-featured positive file contains a historical summary of account and recent activity. The positive file provides the basis for identifying new accounts and tracks history to detect unusual check writing patterns.

(Q) Can my customer "charge-back" their purchase?

(A) On cleared transactions a customer has 60 days after date of purchase to reverse the charge. Our bank will automatically credit your customer's account if a transaction is disputed or repudiated.

(Q) What is the maximum dollar amount allowed per sale?

(A) $10,000.00 U.S.

(Q) Can I make sales "Internationally"?

(A) Absolutely. The customer must use a bank that is part of the United States ACH system.

(Q) Will my customer receive a receipt for their purchase?

(A) Absolutely. While the customer is still on our bank's secure server performing their transaction, they will immediately receive a receipt they can print. Additionally, via e-mail, we will send them a receipt verifying their purchase from your website.

(Q) Will my bank charge me a fee for Internet check deposits?

(A) No. If your bank does, switch your account to a new bank.

(Q) How soon can I begin accepting Internet checks?

(A) You can start accepting Internet checks the day after our bank approves your ACH Agreement and Bank Agreement.

(Q) How do I sign up for Internet Check?

(A) Simply call Elec Chk toll free at 866.450.9388 or click the link below.

Check Conversion...

(Q) How is Check Conversion different from a debit transaction?

(A) Check Conversion employs existing infrastructure involving the customer's physical check being passed through a check reader where the Magnetic Ink Character Recognition (MICR) data is captured and processed through the ACH (Automated ClearingHouse) network. Debit transactions are processed through ATM networks and involves the customer entering in a PIN (Personal Identification Number).

(Q) Does it mean Check Conversion has guaranteed payment when I receive an approval code?

(A) Although Check Conversion is not a guaranty service and does not utilize the ATM network to determine the checkwriter's balance, payments are verified against both a negative and positive database for any negative history.

(Q) What information is "verified" in the verification process?

(A) Verification will ensure that an account is open and does not have a reason for denial. Verification does not guaranty that sufficient funds are available for the transaction. Extensive Negative File. We use pooled data with daily updates and transactions amounting to over 1 million updates a month and work with a consortium of check verification companies to ensure database accuracy and integrity. Positive Data File. This full-featured positive file contains a historical summary of account and recent activity. The positive file provides the basis for identifying new accounts and tracks history to detect unusual check writing patterns.

(Q) Are checks ever going to become obsolete?

(A) No. Consumers on the average write more than 60 billion checks in the U.S. every year. Analysts are saying this number will increase until the year 2025.

(Q) How are consumers reacting to Check Conversion?

(A) NACHA (National Automated ClearingHouse Association) has indicated that consumers have been neutral to positive towards Check Conversion. Large retailers such as Wal Mart are currently utilizing electronic check conversion.

(Q) Is my customer's checking account information secure?

(A) Absolutely. The processing of traditional paper checks involves many people handling the item during processing period before it reaches the customer's bank. With Check Conversion, only the merchant and the customer have viewed any account information.

(Q) How does the payment reflect on my customer's bank statement?

(A) The transactions reflecting on your customer's bank statements are more detailed when processed with Check Conversion.

(Q) What happens if my customer disputes a charge?

(A) By Regulation, a consumer has 60 days from the date of the transaction to reverse charges. Our bank will automatically credit your customers account if a charge is ever disputed or repudiated.

(Q) How much does Check Conversion cost?

(A) This mainly depends on volume, how soon you would like to get started, if you need to lease or purchase equipment, what type of equipment to lease or purchase, and how long of an arrangement is agreed upon. For further inquiry please Contact Us.

(Q) How do I sign up for Check Conversion?

(A) Simply call Elec Chk toll free at 866.450.9388 or click the link below.

Merchant Processing...

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