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Accept Checks
with No Risk!
Accept
checks with no risk with EZ Check: Electronic
Check Conversion (ECT) The
EZCheck™ Electronic Check Transfer program (ECT) combines the benefits
of paper checks with the speed, ease and safety of electronic processing.
It’s just like accepting a credit card or debit card at the
point-of-sale. The
check is converted to a paperless transaction by electronically moving
funds from the customer’s bank account to the merchant’s bank account.
Combined with Check Guarantee, this service delivers a streamlined
check acceptance process that eliminates returned checks and returned
check fees, while reducing paperwork and trips to the bank. With
the EZCheck Electronic Check Transfer program, check writers will continue
to benefit from the float of a paper check, since the electronic item is
processed through the banking cycle in the same amount of time as a
traditional paper check.
It’s a safe process that uses a secure bank system similar to
those used for direct deposits and ATM transactions. The
EZCheck ECT program helps merchants take full advantage of this new
innovation in the world of electronic commerce and provides the added
safety and convenience of paperless money.
Note:
The EZCheck Total Solution System is proprietary to EZCheck.
Processors not certified with EZCheck cannot download their
software applications onto the EZCheck Total Solution System without
getting approval from EZCheck. What
Is The Electronic Check Transfer (ECT) program?
The
EZCheck Electronic Check Transfer (ECT) program is a revolutionary process
that converts paper checks into electronic items at the point-of-sale.
The electronic item is then processed through the Automated
Clearing House (ACH) and funds are automatically deposited into the
merchant's bank account, cutting paperwork and helping to improve cash
flow. The
Electronic Check Transfer program combines the benefits of paper checks
with the speed, safety, and ease of electronic money movement and delivers
a streamlined check acceptance program for the merchant.
The program requires the check writer to sign a printed receipt
authorizing the electronic transaction.
A copy of the receipt is returned to the check writer (just like a
credit card or ATM receipt).
The check writer's monthly bank statement will display the merchant
name, amount of the transaction and settlement date. The ECT transaction
is authorized and settled similar to credit card transactions. How
Does The Electronic Check Transfer (ECT) program work?
It's
convenient and comfortable – reliable and safe.
Consumers, who have been paying by check for years, still have the
comfort of writing checks with the ECT program.
However, since a paper check is touched by as many as six people
before it reaches a check writer’s account, consumers now have the added
security and confidence of knowing that no one else will see their check.
For
the check writer, this way of paying is safer than carrying cash and
cheaper than making an ATM withdrawal.
Plus, consumers can avoid the cost associated with other payment
methods. 1.
The check writer completes and presents his/her paper check at the
point-of-sale. 2.
The clerk inserts the check into the payment terminal (check
reader) to authorize the check with EZCheck. 3.
The clerk gives the check writer a printed ECT receipt for his/her
signature* which authorizes EZCheck to electronically present the
transaction to the check writer's bank for settlement per Regulation E
requirements. 4.
The clerk stamps the check "Do not deposit” after the
authorization slip is signed. 5.
EZCheck transmits the ECT transactions for settlement.
EZCheck automatically deposits the funds into the merchant’s
account. 6.
A description of the transaction is included in the check writer's
bank statement. *Note:
If the check writer does not want his check processed electronically, the
check can be authorized by EZCheck and deposited into the merchant’s
account as usual. However, market research has shown that once customers
understand the ECT program, they realize it is a safe and secure process.
Converting
paper checks to electronic checks is a natural process, using proven
technology to make checks faster and easier to process.
It is also consistent with the push by the federal government and
industry groups to develop and implement electronic transactions. What
are the merchant benefits? The
ECT program offers merchants a number of key benefits: 1.
No
Returned Checks:
With the ECT program and check guarantee, merchants never see a returned
check again, because any returned checks become the responsibility of
EZCheck. 2.
Reduced
Paperwork:
End of the day balancing and deposit preparation is greatly simplified
with the ECT program. Reports
printed from the ECT program will help the merchant know what has happened
during the business day.
Once the ECT terminal batch is closed, the merchant is assured that
deposits are automatically made through the ACH network, usually within
two business days. Also,
while the ECT program won't completely eliminate the need for trips to the
bank, it will reduce the frequency, ultimately saving time and money. 3.
Improved
Cash Flow and Cash Management:
Merchants improve their cash management since their ECT funds are
available usually within two business days.
In addition, merchants with several locations can automatically
deposit checks into a consolidated bank account. What
are the possible check writer benefits? With
EZCheck, check writers will continue to benefit from the float of a paper
check, since the electronic check is processed through the banking cycle
in the same amount of time as a traditional paper check.
Reconciling bank statements is easier, since more detailed
information is provided on the statement. Why
wouldn't a check writer just use a debit card? Many
check writers prefer checks for record keeping purposes, security reasons
and for the float. Not
all check writers have access to debit cards, and many merchants have not
invested in PIN pads. Why
does the check writer have to sign an authorization slip? The
check writer has to sign a printed ECT receipt to authorize the electronic
transaction for the Automated Clearing House (ACH), which in turn forwards
the electronic check transaction to the merchant’s bank account instead
of depositing the paper check. What
happens if the check writer's account is debited twice? In
case of an error or dispute, check writers have 60 days from the posting
date to notify the bank, the same time frame they have today with paper
checks. The
bank is responsible for reviewing a dispute or error. Is
this process safe for check writers? Companies
that process payments electronically (checks, credit cards, ATM's) must
follow government guidelines.
Check writers retain the same rights they currently possess when
disputing fraudulent items posted to their checking accounts. Is
this process regulated by any government agency? The
electronic process is governed under Regulation E, which covers all
electronic processing, such as ATM and credit card transactions. Check
Writer Questions
Who
can charge my account with an electronic check? Only
merchants to whom you have written a check for purchase can process the
check electronically. Merchants
must also require that you sign a slip authorizing the transaction to be
electronically processed. Who
gives the merchant permission to electronically charge my account? You
do. Merchants
are required to get your signature on an authorization slip at the time of
your purchase. How
will this transaction appear on my bank statement?
A
complete description of the transaction is included in the check writer's
bank statement for reconciliation purposes, including merchant's name,
settlement date and amount.
It will appear with the other electronic payments, such as direct
payroll deposits or ATM transactions.
When
will my account be charged?
Generally,
your account will be charged in the same amount of time as a paper check.
(Approximately 2 days.) Will
my financial institution charge a fee for an electronic check?
We
do not know of any financial institution that is charging check writers
for ACH transactions. How
exactly is the money being moved?
What is the process? The
check is processed from the point-of-sale as a standard Automated Clearing
House Electronic Funds Transfer (EFT) item.
The Automated Clearing House (ACH) Network is the national
electronic funds transfer network connecting the nation’s 13,000
financial institutions. The ACH Network has been in operation for 25 years
and processes over 5 billion payments (Direct Deposits, Direct Payment,
etc.) annually. The ECT program is a natural extension of the capabilities
of ACH. Can
I use the check more than once?
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Why is the ECT
program becoming so popular? 