Checks are an unwavering fixture in American business. An ever popular payment method, check acceptance is one of the oldest payment methods used today, and will continue to remain popular. While this method of payment has not had many advances over the years, check acceptance certainly has, with the latest Electronic Check Conversion. Improving efficiency and reducing risks associated with check acceptance, Electronic Check Conversion converts a traditional paper check into an electronic check (EFT) at the point-of-sale and processes it through the Federal Reserve Automated Clearing House (ACH) network. Similar to the process of a credit card transaction, the check information is entered into a payment terminal and an approved or declined response is given based on the check writer's information. When an approval is received the check is then processed electronically by debiting the check writer's account through the ACH network and crediting your account. This electronic process saves time and gives you an added convenience and security by allowing hassle free transactions and reduced risks of checks returned due to Non-Sufficient Funds (NSF). Cynergy Data's Electronic Check Conversion also comes with a guarantee, giving you the assurance that checks submitted through the check conversion system will be electronically deposited directly into your checking account within 48 hours. Electronic Check Conversion will let you broaden your check acceptance options with confidence. In transactions ranging from accepting out-of-state checks to accepting large check amounts, with Electronic Check Conversion, you will be able to broaden your options with assurance, giving you more time to focus on your business and your customers. Save time, add convenience and reduce risk with Electronic Check Conversion.

Checks remain the preferred form of payments for consumers, but remain a costly inconvenience for merchants. We have partnered with Global and Telecom to offer the most state-of-the-art Electronic Check Conversion (ECC) program. Global e Telecom has been the pioneer in this exciting new industry and is an active member of the National Automated Clearing House (NACHA), and they continue to set the industry standards for ECC. 

Partnering with Global e Telecom, we can offer you two separate check programs, a fast approval turn-around time and a virtually effortless sign up procedure, All that is needed to sign your merchant up with ECC is the service addendum accompanied with the merchant application.  

The following information outlines how the service works, along with the separate programs that are offered: 

The Process 

Electronic Check Conversion converts a paper-based check to an electronic transaction at the POS. The check information is then transmitted via electronic equipment to a national verification database where it is evaluated against negative information. Within seconds a response is sent back to the merchant. A receipt (very similar to a credit card transaction receipt), is generated and the customer signs it, thereby authorizing the electronic collection of funds to the merchant. The check is stamped “ACH Processed” and actually handed back to the customer. The check information is then stored, and the transaction deposits are routed to the merchant’s account within 48 to 72 hours.  

Merchant Benefits 

Convenience is important to everyone, not to mention our merchants. Electronic Check Conversion gives the merchant just that its convenience with a guarantee. This check conversion process not only processes the check electronically allowing the merchant to forego trips to the bank, but it also guarantees the approved transactions. With ECC, the merchant simply accepts the check, and check conversion program does the rest. The merchant can now accept and process checks just like they accept and process credit cards.  

Additional Options 

This program not only offers electronic check conversion, on-line transaction viewing and customized detailed reporting are also offered. With the reporting feature, the merchant is able to track all of their transactions through a secure on-line system that is available 24/7. The reporting capabilities of this system also allow the merchant customizable reporting features, this enabling detailed information in the format the merchant prefers. The additional option ECC has to offer takes all of the guess-work out of accepting checks and manages the process for the merchant.

Note: Corporate Checks cannot be processed. 

Types of check services 

1.       e-Gold 

Verification and Electronic Check Processing (truncation), Guarantee of all approved and accepted checks (with the exception of Stop Payment Checks). 

This is the most popular program of the three offered. The e-Gold Service Program allows the merchant to Process checks just as they would credit cards, with each approved transaction guaranteed. The check processing company will fund the merchant on transactions within 48 hours. The merchant will not be charged back for any returned checks. The Checking Company handles the collecting part of any bad checks.

Requirements: The following requirements are mandatory for guaranteed funding on approved checks: 

• Check must have a valid address and telephone number. When imagining is used the telephone number must be written on the check.
• The merchant must input the check-writer’s driver’s license into the terminal.
• The check-writer must sign the authorization receipt and print their name and telephone on the receipt.
• Check must be stamped “ACH Processed” and returned to the check-writer.
• Merchant must retain a copy of the signed receipt with the printed name and telephone number for two (2) years. If there is a question about a check, it will be necessary for the merchant to fax a copy of the receipt to the Finance Department at Global e Telecom.
• Merchant must batch out daily.

Benefits: 

·         It increases sales by accepting all types of checks including out of state checks.

·         Eliminates bad checks

·         Faster availability of funds

·         Eliminates Non-sufficient Funds check and deposit fees from local bank

·         Eliminates the sorting and depositing of paper checks

·         The process is simple to use because it mirrors a credit card transaction

·         No paper claims file for bad checks

·         If a check is declined, the merchant will not be charged the discount rate fee on that transaction 

2.       e-Silver 

Verification and Electronic Check Processing (truncation). A non-guaranteed program.

The e-Silver service program allows the merchant to process checks as they would credit cards, but without the guarantee. The merchant will receive a provisional credit on all batches; however, there is a mandatory 2-day delay on deposits (4 days totals). The merchant will be debited back on all checks that do not clear the ACH network for the following reasons: 

• NSF (non-sufficient funds)
• Administrative Returns (Including Stop Payment)
• Closed Accounts
• Fraudulent Checks

Requirements: To apply for the e-Silver Service, the merchant must complete the “Electronic Check Service Addendum” with e-Silver transaction fee filled in; the “Silver Disclaimer” must also be included signed by merchant. The merchant requirements are the same as the e-Gold Service.

Benefits: 

·         Increases sales by accepting all types of checks.

·         Decreases bad checks

·         NSF checks are resubmitted 2 additional times

·         Eliminates NSF and deposit fees form local bank

·         Eliminates the sorting and depositing of paper checks

·         Process is simple to use

·         Multiple location merchants can have funds deposited into one account. 

Unacceptable Businesses for either program:

Criminal & Bankruptcy Attorneys
Pawn Shops (only under the e-Silver program)
Used Auto Sales (only under the e-Silver program)
Unlicensed Massage Parlors
Check Cashing & Payroll Advance
Credit Counseling
Adult Related Business
Investment Opportunities
Travel Agency (only under the e-Silver program)
Gambling/Bingo and Bail Bandsmen