Home Add to Favorite Contact Submit  
           21 January, 2021


    
Category:  Press » Internet

 

Electronic Check Conversion Could Catch Holiday Shoppers, Businesses Off-Guard

Popularity:
         Views: 1510
2006-11-22 21:31:30     
ePayments Corp.

Electronic processing of checks will be at its highest rate ever this holiday shopping season. However, many consumers are not even aware their checks are being electronically processed, and the businesses that process them could face fines for not telling them.

That's according to Paul Lufkin, CEO of electronic payments processing and financial services company ePayments Corp. of Denver, Colo.

"Consumers aren't informed, and some businesses aren't telling them," said Lufkin, whose firm assists merchants in properly processing checks presented for payment and collecting those that bounce. "It's not a big deal until the consumer discovers bounced check fees from their bank for a check that was returned NSF in just 24 hours; and the business pays the penalty for not telling them."

Under rules developed and issued by NACHA, The Electronic Payments Association, merchants may use a special scanner to convert paper checks presented at the point of purchase (POP) into fast-clearing electronic transactions -- as long as they get the customer's signed authorization. (Merchants must also clearly post signage and fees if electronic processing will be used to collect any resulting bad checks.) The merchant completes the transaction by stamping the check "Void" and returning it to the consumer.

Checks are then processed through the nationwide electronic funds transfer system called the Automated Clearing House (ACH). Such ACH payments are increasingly popular because they can save banks, businesses and consumers time and money. However, consumers don't get the usual "float time" on their checks, resulting in bounced checks and charges.

"That's where the rules come in," said Lufkin. "You've got to tell consumers what's happening with their checks."

Lufkin said it's important for consumers -- as well as businesses -- to be familiar with the basic rules of electronic check payment authorization:

1. Customers must be notified if the checks they write will be converted to electronic payments and processed as an Automated Clearing House(ACH) payment.

2. Customers must be informed that their non-sufficient funds (NSF) check will be collected electronically through the re-presented check (RCK) process and that they will be charged an NSF service fee.

3. Customers have to give written authorization to any business before that business can collect an NSF service fee electronically.

4. Consumers cannot be charged in excess of the allowable state authorized NSF fee.

Consumers who are aware of these four key guidelines can avoid surprises in their checking accounts and being overcharged for NSF service fees. Businesses that remain in compliance by paying close attention to these and other check processing guidelines can help avoid costly fines and being exposed to class-action lawsuits for overcharging consumers.

Lufkin said the Electronic Payment Compliance Assessments (EPCA) offered by his company is one method that businesses can use to review their systems to make sure that they're compliant. He has discovered businesses and government agencies that are dangerously out of compliance. Lufkin emphasized that compliance issues include improper electronic check transactions, possible infringement on patents and extend to the complexities of the Sarbanes-Oxley Act, which makes CEOs responsible for establishing and maintaining internal controls, including the accurate accounting and reporting of electronic payments transactions.

About ePayments Corp.

Offering a complete range of merchant check and credit card payment processing and support services, ePayments helps businesses who receive non-cash payment transactions to reduce their risk while increasing cash flow. Unlike the traditional support players (such as banks), ePayments has evolved the technologies and processes associated with accepting checking payments to reduce the costs required to process all forms of payment. The company provides the complete range of processing services, including electronic returned check collection (RCK), electronic check conversion (ARC), Check 21 (C21) conversion, check authorization, check guarantee, check-by-phone/web, consolidated returns, Electronic Payments Compliance Assessments and credit card processing.

Specialized in: Conversion - Shoppers - Businesses Off-guard
URL: http://www.epaymentscorp.com
Print press release      Bookmark this page
Related Press releases 
NsaSoft announces the release of the Nsauditor Network Security Auditor 3.1.3 (Popularity: ): NsaSoft announces the release of the Nsauditor Network Security Auditor 3.1.3, the Latest Version of its Popular Network Security Audit and Network Monitoring software.May 7, 2019 (press.abc-directory.com) -- Nsauditor Version 3.1.3 adds latest network security vulnerabilities detection and updates network databases. Nsauditor contains a built-in database of known network security vulnerabilities, which allows you to select the items for scanning and add custom entries. With Nsauditor Network Security Auditor, Systems ...
hide.me Launches A Life Time Free VPN - No Registration, No Signup Required (Popularity: ): 26-04-16, Kuala Lumpur: hide.me VPN is always working towards improving the security of its users and keeping their promise of making internet security as simple as possible.Free VPN - No Registration Required If you are not using hide.me or haven't tried it yet, this is your best chance to try out our FREE VPN on your Windows laptop or PC without any registration or Sign-up. We don't even require your email ...
RummyCircle.com Launches Sankranti Rummy Tournament – 5 Lakhs in Cash prizes (Popularity: ): Mumbai, Maharashtra, India, Thursday, December 27, 2012: RummyCircle.com, India’s largest Rummy site announced the launch of Sankranti Rummy Tournament today with Rs. 5 Lakhs in Cash prizes. This marks the beginning of the New Year and the auspicious harvest season especially in South of India. Sankranti is celebrated all over India and the auspicious days are known with names like: Pongal, Uttarayan, Khichdi, Maghi, Boghi, Kanuvu etc. Playing cards with ...
Soft Solutions launched Joomla upgrade 2.5 services (Popularity: ): 11- August -2012, Soft Solutions, a leading web development and SEO Company today launched Joomla upgrade 2.5 services. Joomla 2.5 is more secure and has numerous advanced features like multilingual support, enhanced article editing, mobile website support, etc. Moreover, Joomla 2.5 is more seo friendly.Joomla is an open source content management system. Joomla is the most popular website software. It is easy to use and thus the web developers can ...
Global web Designing and Development at Vrinsofs.com (Popularity: ): Ahmedabad, Gujarat, 23rd January, 2012. Vrinsofts.com is a specialist company for Web designing and development. It is one of the fastest growing Offshore Software Development in India. Vrinsofts deliver services with commitment. Services Provided by Vrinsofts.com are; Web designing and development, Search Engine Optimization (SEO), Custom PHP Development, Custom .net Applications, Content Management System (CMS), E-commerce website development, Mobile Application Development, Domain Registration and many more IT Consulting Services. We ...

Press release home snapshot 


Related Business 
CrossCheck, Inc. (Popularity: ): Provides check guarantee, Internet check processing, electronic check conversion, and collections services.
Men Online Store in UAE - Shoppers Idol.com (Popularity: ): Shoppers Idol is an online store for online shopping in Dubai and all over the UAE at very affordable prices. We provide computers, electronic Gadgets, toys, cool Stuff & Novelties, games World, home Appliances supplies, personal care & Beauty and many other products. Shoppers idol is a one stop destination for all the shoppers.Our vision is to have quality items for our shoppers with good prices.
Seattle Dog Guard (Popularity: ): Seattle Dog Guard is the Seattle area’s exclusive representative of the Dog Guard® brand of electronic pet fencing. Dog Guard is a family owned company that has been containing pets for over 23 years. Based out of Troy, New York, Dog Guard is made in the USA, and focused on serving our customers. Whether it’s our 30-day money back guarantee or the Lifetime Warranty we deliver a safe contained pet.
Web2B Payment Solutions (Popularity: ): Provides electronic check processing and verification services including ACH conversion.
Data Conversion Laboratory (Popularity: ): Data Conversion and Document Conversion Service to XML, SGML, HTML and OeB from paper and electronic source formats such as Quark, Interleaf, FrameMaker and PageMaker.
Nova Information Systems (Popularity: ): Provides integrated credit and debit card payment processing, electronic check conversion and related software applications. Includes product and service information.
Check Assist (Popularity: ): Electronic check representment and check collection software.
Security Guard Training (Popularity: ): The number one resource and blog for becoming a security guard. All the security guard training information and tips that you'll need to land the perfect job and rise above the competition. Keep your security guard skills sharp and ready by reading security guard training tips. Includes real advice from a security guard.
Charleston SC Holiday Adventure (Popularity: ): Our recent family holiday in Charleston SC gave us happy memories. An adventure our children enjoyed and asked when do we return? After unpacking, we immediately decided to catch a ride on a horse-drawn-carriage tour of the historic district.
Allan Webb Ltd (Popularity: ): Document Scanning conversion to any format, document scanning and capture, electronic storage, paper archive, legacy conversion, document to CD conversion, Internet and the production of technical publications. Procurement to UK MOD and engineering industry.