What is the electronic processing of checks?
The electronic processing of check means you can (also known as E-Check) a check from a client in an electronic transfer that the agent takes account of his client and in your account convert received. (You can use the transaction of its kind in the state of the controller have seen.) This transmission is through automated home Federal Reserve Bank Clearing House (ACH) system. It’s got a faster and cheaper on your money.
What is the ACH network?
In short, the ACH network is moving money from one company to another – by electronic means. The Automated Clearing House (ACH) is a network of reliable and efficient nationwide batch-oriented system of electronic transfer of funds, which provide for the interbank clearing of electronic payments for participating depository financial institutions. The Federal Reserve Act and electronic payments as ACH operators, central clearing facilities through which financial institutions transmit or receive ACH entries. The process is governed by NACHA, The National Automated Clearing House Association (nacha.org), operating rules and business processes.
ACH transaction types:
• Direct deposit of payroll, Social Security and other government benefits and tax refunds
• Direct payment of consumer bills such as loans, bills and insurance premiums
• Business-to-business payments
• Electronic Check (e-checks)
• E-commerce payments
• Federal, state and local tax payments.
If you get their salaries deposited directly into your bank account is already with the ACH network. You can use this system for your company, you’ll never have to go to the bank – can process checks electronically from your computer.
Electronic Check Processing
Electronic check processing is the means by which you can take a check and submit it for payment electronically rather than Bank. Your bank can give you this if you have a scanner to check it now. The scanner takes an image of the check and sends the image to the bank electronically. The bank processes the check as if he had given a physical examination itself.
A simple way to process checks electronically is a software program or a payment processing service on the web-based application. When using a Web-based system, or ASP, you must install not buy software, or hardware. Simply key in the verification of the information and submitting the transaction.
The process is simple:
1. Notify
They share their customers that their checks are processed electronically. You can do this in writing on the invoice, or send a poster with this information at your workplace.
2. Collect and convert
If a check is for payment to an electronic payment system will be converted at one time ACH-based prisoner presented with relevant information to the client financial institution and account number. Then make an image for archival purposes (you should copy from 2 years ago), the original check stamped “CANCELLED” and discard.
3. Process
An ACH file is created and presented to your bank – this is usually through the payment process you use, are the payments processed through the ACH network done is the customer’s account debited and your account fertilizer. It usually takes about two working days for money to your account to achieve this is about the same time if you send a check to the bank. more than a week can take to get this information to a traditional mode – you are not of sufficient funds in about 48 hours with an electronic transaction notified.
4. Confirm.
Once your account is calculated by electronic payment will appear on your statement to “other electronic payments” or a similarly labeled area. The description should include the check number, amount and the billing name of the company. Your customers can not be a copy of the check in his statements, but may be asked to provide a copy (you have one of your files.)
Electronic Check Processing allows your organization to:
• Improve cash flow with quicker access to your money
• Save your customers time and money
• Increase collections on time
• Receive 48 hours of the announcement NSF
• Eliminate manual reconciliation of insufficient funds
• Avoid wasting time going to the bank

Why electronic check processing?
• There is an average of $ 1.22 in costs for labor and equipment to process a paper check costs. Electronic check processing cost as little as 55 cents.
• Check the conversion requires little effort or time to create, and once established, your company immediately begins saving money.
• Your customers will appreciate the convenience! Electronic check (or e-check) processing this information to verify by phone or send through an online form. You do not have to pay more to shipping!
• Check is used to convert based on the same network security for direct deposit and direct payment, the Automated Clearing House (ACH).
• Federal Reserve Regulation E and NACHA operating rules regulate electronic payments processed through the ACH network. Because of Reg E and NACHA operating rules, consumers have more protection with check conversion.
• check conversion is the fastest growing type of electronic payment systems ever. were over 1 million payments to consumers account by check implemented successfully, the ACH payments in 2004.
• Check Conversion saves time and resources to process payments, resulting in cost savings continue their business.
• Electronic processing reduces the load on the transport systems of our nation and the environment. It takes a considerable amount of fuel to send millions of our country checks each year between companies, financial institutions and customers.

Tips for selecting a system Electronic Check Processing
• Choose a system that you do not buy expensive hardware or software in advance
which should never have to pay a portion of the transaction to the processor – • Search for a flat price for the electronic check transactions.
• Ensure that the monthly fees, transaction costs, monthly minimum charge and choose a system that makes economic sense for your company
• Choose a system that is securely stored client information, so you eliminate duplicate data entry at the customer can send multiple payments.
Export • Select a system that customer data can help you automate your entire A / r by integrating payment processing with major business software.
• Find a system that allows both electronic and process controls and direct debits. (This means that the collection of client bank accounts without a paper check -. Such as telephone checks, online bill payment or monthly recurring charges automatically deducted from customers’ accounts) you need to load the same amount of land transactions, direct debits, that the electronic check transactions pay.
• Safety is important when electronic payments – to ensure that the payment that you used a robust security and encryption tools rather than 1024-bit digital certificate, 128-bit encryption and SSL (Secured Socket Layer) to CISP – Cardholder Information Security platform.