eCheck Online - Frequently Asked Questions

Check by Phone FAQ

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• How do I know a sale has occurred by using the Internet?

  Check the ACH Software Application at your home/business computer with the drop-down menu from Reports Button Reports/ Funding/ Settlement Detail or use Virtual Terminal.

• How is a rejected transaction handled?

  Several times during the day, settlement details are posted to your account and are viewable on your home/business computer. The Settlement Detail lists all rejected items. An example of a rejected transaction is a NSF (Non-Sufficient Funds) check.

  
  

  The report contains all the information necessary to identify the returns so that you can decide whether to "run" the transaction again or contact the Consumer directly to follow-up with the sale.
  

• What is the maximum dollar amount allowed per sale?

  Limits are independently established for each merchant.

• Can consumers "charge back" purchases?

  Cleared Funds: Within 60 days after purchase, our bank will automatically credit consumer's account if transaction is disputed or repudiated.

• Will my bank charge me a fee for Online Check deposits?

  No. If it does, then switch your account to another bank.

• How soon can I begin accepting Online Checks?

  You can start accepting Online Checks the day after we approve your completed application and Bank Agreement. The typical approval time is 4 to 8 days.

• Will my Customer be returned to my site after the purchase?

  YES! You simply supply us with the exact location page (www.mysite.com/mystore/store.htm) or you can customize your own secure purchasing page. It's totally up to you

• How are funds deposited into my account?

  We deposit all funds into your existing bank account via the ACH Banking System.

• When are funds deposited into my account?

  Your funds will be deposited into your checking account within 48-72 hours of the online transaction not including weekends and holidays. We utilize the NACHA electronic network that transfers and clears funds between banking institutions on behalf of online merchants and their customers.

  
  

  Each transaction takes approximately 48 hours to clear. We strongly suggest that merchants wait five days from the initial transaction date before shipping any goods to insure that the payment has cleared.
  

• How will I be billed for the Online Check service?

  Your checking account is debited the 1st of each month. An invoice is mailed with an electronic debit within 8-10 days.

• Will Online Checks work with my current Shopping Cart?

  Yes. You can use our Integration Guide and software even if you do not have a shopping cart on your site. If you choose, we can provide you with a Payments Gateway.

• Is it legal?

  YES. Web entries are transactions subject to the requirements of the NACHA Operating Rules, the Electronic Fund Transfer Act and Regulation E, as promulgated by the Federal Reserve Board.
  
  Web authorized entries are defined as a debit entry to a Consumer Account initiated by an Online Merchant pursuant to an authorization that is obtained from the Consumer via the Internet.
  
  

• Is there a minimum transaction volume or a minimum amount of transactions required per month?

  There is NO minimum transaction volume and NO minimum number of transactions are required per month.

• Are electronic funds transactions (transfers) processed before regular paper checks?

  Yes. The Automated Clearing House (ACH) processes deposits first, then electronic funds transfers (EFT), and then paper checks last. Consequently, fewer EFT's result in non-sufficient funds than with paper checks.

• What percent of the American population has credit cards versus checking accounts?

  Yes. The Automated Clearing House (ACH) processes deposits first, then electronic funds transfers (EFT), and then paper checks last. Consequently, fewer EFT's result in non-sufficient funds than with paper checks.

• Can we use our current point-of-sale (or practice management) software in conjunction with your services without duplicating our efforts?

  94% of people have a checking account, however, only about 50 % of American adults have a credit card. What is even more interesting is that half of those with a credit card have already reached their credit limit. For this reason, accepting checks over the phone and over the internet can increase your market potential dramatically.

• Can we download from our computer into your computer the information needed to electronically transfer large numbers of transactions?

  Absolutely! All that is required is that your data stream be in a specific format which our software can import. Even if your current software can't export per our specifications, we can assist with a link that will convert your data stream to meet our import requirements.

• What are the drawbacks with accepting checks?

  Anytime a merchant accepts a check there is a certain amount of risk associated with whether the check will "clear" or not.
  
  For this reason, it might make financial sense for some merchants to use either check verification, or check guarantee services to minimize this risk. A few issues to consider are your current "bad debt write-off", number of out-of-state checks, dollar amount of your average check.
  

• Will the customer's checking account be secure?

  Yes. By law, financial institutions regard customer information as highly confidential. In comparison, traditional paper check is handled by many people in the payment process before it ever gets to the bank.

• What does it cost?

  Transaction fees for processing checks are typically less than processing credit card transactions.

• Is it difficult to get started?

  Not at all. We make it easy to get started. We can get you up and running quickly and we accept a variety of electronic files so it's also simple to administrate.

• How quickly will I receive my funds?

  Funds can be electronically transferred to your account in as little as 48 hours.

• How can I reduce the number of items returned for invalid accounts and insufficient funds?

  ATMVerify can help eliminate returned items by verifying if checks are drawn on closed or overdrawn accounts and if inaccurate ABA routing or account numbers are provided.

• Can check payments by phone or fax be guaranteed?

  Unfortunately, Checks By Phone or fax can not be guaranteed at this time.

• What can I do about collecting items that have been returned NSF?

  Items that are returned NSF can be re-presented for payment. Merchant Advisors can manage this process for you if you desire.

• Why is there so much paper work required?

  The documentation that we request is used to establish and verify the identity and the credit worthiness of the business or individual applying for the ACH account. We are extending you credit for every transaction.