Electronic Check Conversion

Studies indicate number of paper checks written is actually growing by an estimated 2% annually.
 

WHY?
1) They enjoy the 2-day float.
2) Habit.
3) Record keeping.
4) Have no credit/debit card.
 

• Check fraud and uncollected funds cost retailers more than $5.9 billion annually.
• Extensive paper handling by employees - touched an average of 6 to 12 times.
• Bank deposit fees and NSF fees.
• Delays in funding (especially for out of state checks).

With Electronic Check Conversion (ECC), checks are electronically processed and funds are deposited into the bank account.

"Enables Merchants to accept & process checks similar to a credit card transaction!"

1.  Merchant will swipe check through a check reader and input drivers license  # and the amount of sale.

2.  If transaction is approved a duplicate receipt will print and consumer completes receipt.

3.  The check is stamped "ACH Processed" and check along with the receipt are handled back to the consumer.

4.  GETI will fund fund merchant on transaction in 48 hours - just like a credit card. (Consumer still experiences a 2 day float!)

5.  Merchant will not be charged back for any returned checks. (As long as proper procedures were followed.)

1.  The receipt must have check writer's signature, printed name and phone number.

2. Drivers License must be entered into terminal.

3.  Merchant must batch out daily and provide copy of receipt within 48 hours of GETI requesting it.

4.  Check must be from a consumer's PERSONAL checking account.

Is check writer debited immediately?

No. Check writer will still experience about a 2 day "float" before funds are withdrawn. (about the same as if it was a paper check)

What happens if check writer writes a back check?

The merchant will still be funded by GETI with GETI's money - not the check writers. GETI is responsible for collecting from check writer.

Does the terminal verify that the checking account is open or that there is money in the account?

No. The terminal is check against a national negative database of bad check writers.

What is the merchant's check limit?

GETI will issue the check limit when merchant is approved and will be posted on the "Merchant Approval" form. ISO is to state on merchant application the highest check limit merchant will require. Ninety percent of the time GETI will be able to accommodate merchant's request.

Are business checks acceptable?

1)  If check is a personal check with a Doing Business (DBA) name and the owner of the account signs the receipt then that is acceptable.

2)  Corporate checks are not allowed by NACHA to be processed.

Any good tips on promoting to merchants?

• "Are you taking checks the old way or the new way?"
• "How would you like to accept and process check just your credit cards? You swipe the check and give it back to the consumer and you are funded electronically in a few days - guaranteed."
• "Have you seen the new Electronic Check Conversions systems?"
• "How would you like to have your customers checks electronically deposited so you don't have to go to the bank?"
• "Wouldn't you like to lower your banking fees?"
• "You can now accept and process checks with the same security as a credit card for a lower cost."
• "You can now accept checks and get paid electronically without worrying about bad checks.

• Convenience Stores
• Quick Service Restaurants (fast food, etc.)
• Gas Stations

• Merchant will not be required to input driver's license into terminal.
• Maximum check limit will be $50
• Average check must be $25 or under
• ISO must write on top of merchant app "QSP"
• No discount percentage - contact GETI for your QSP per transaction fee buy rate.

Pat A. McDavitt, Owner
C. J. & Tuck Consulting, LLC

1422-A West Braker Lane Austin, TX 78758-3702
Phone 512-837-1358
FAX 512-837-0345
Information: pat@cashflownow.org
Webmaster: webmaster@cashflownow.org