ECHECKS AND DEBIT CARD PROCESSING

Online Checks or eChecks as they are commonly known are just like any other normal paper checks, with the obvious difference being that they are processed online. Therefore the signature of the recipient is not required, and the process is also entirely legal. The only requirement for such a transaction is to have knowledge about the customer’s checks in the real-world context, to see if their accounts are actually validated.

An eChecks can be accepted by the merchant in two ways. One is the direct method which you are required to do by yourself. Here, you are required to purchase a particular program or software, which enables you to print out the check given by the customer. Next the check needs to be deposited into a bank, like you would do with any normal paper check. However, this method has quite a few drawbacks, as you would need to wait for many days for the bank to validate the check and ensure that you will get paid, and only after this can you send across the order to the customer. This becomes necessary due to the many prevalent fraud cases going around.

The second method, and probably the wiser way, of accepting these online eChecks is to tie up with an online transaction service, that will verify the check for you, making sure that the information needed for the check to be cleared is completed. Some services will also give you a guarantee for the sum if you pay up an extra fee, meaning that the service agency will give you a reimbursement in case the check does not clear or turns out to be a fraud case, but provided that some of their conditions are met. Such transaction agencies will charge you a fee for their set-up on either a per check basis or on a percentage basis.

The online transaction programs not only assist you in accepting online checks, but also with checks given via the telephone or the fax. What you will need to do is note down the check details, enter it into the program that they provide you with, and then take print outs of the check. Once this is done, the process is the same, depositing it in the local bank. Many of these online check programs need a special type of paper that the checks need to be printed on, but they are also quite affordable. Plus, printing the checks out on your regular laser printer or an inkjet should be fine, as most banks nowadays are shifting over to optical devices rather than magnetic ones. To be on a safer side, ensure you check with your local bank beforehand if they will be able to accept such checks printed from the computer.

EChecks can be accepted via the Secure Gateway companies as well, using their virtual terminals. These companies will not only run checks on the validity of the eChecks, but also verify them against a database that has a list of all bad writers of checks, hence lessening your burden of getting involved in a fraudulent scam.

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