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Buyers' Guide to
Online Payment Acceptance
Chapter 3: Debit/ATM Card
Processing & eChecks
Online
checks (commonly called eChecks) are the
equivalent of the standard paper checks. The
online equivalent doesn't require you to have a
signed check from the recipient. This is
perfectly legal. All you need is the information
that's on the real-world checks of the customer.
There are two ways to go about accepting online
checks. The do-it-yourself
method requires that you buy a program to print
these checks. You then
deposit them into the bank like any normal check.
The big software programs in this category are Vcheck and Intell-A-Check. There is a limited
demand for this type of do-it-yourself online
check processing. You will have to wait several
days to make sure that the check clears before
you ship the order in order to prevent fraud.
The better way of going about accepting online
checks is through a transaction service which
will verify that the information on the online
check is complete, and will even guarantee the
check for an additional fee. What this means is
that the transaction service will end up
reimbursing you if the check turns out to be
invalid, AND certain conditions have been met.
These transaction companies charge a setup-up fee
in addition to a per-check and/or a percentage.
One important thing to note is that most of the
transaction companies out there only process U.S.
checks.
Not only can you accept checks online with these
kinds of programs but also by telephone and fax.
All you have to do is take the necessary check
information they give you and manually enter it
into the program, then print out the check and
deposit it at your local bank. Most check
programs require you to buy special check paper
to print your checks on, this paper is relatively
cheap. In most cases you should be ok printing
checks on your Inkjet or laser printer without
having to use any special, expensive
magnetic-type ink. Many banks now use optical
devices to process checks rather than magnetic
ones. However, before investing in any check
acceptance software contact your local bank and
make sure they will be able to accept checks that
you print from your computer.
Another method to consider, is that some of the
Secure Gateway Companies' Virtual Terminals can
accept check transactions (AuthorizeNet being one
of them). The ones that do this also run a check
verification against a national database of bad
check writers, thereby reducing the incidence of
returned checks. The better services will even
re-submit returned checks automatically. If you
use an online check transaction service, make
sure that a check verification in real time is
included. There's not much to processing a check
online, so don't pay high transaction fees, and
especially don't pay a discount (percentage) rate
on check transactions, unless they are
guaranteed! Also be aware of fund holds on check
transactions, and know when funds will be
available.
Here are a few more check resources you should
consider:
CheckMAN
Checks by Fax
CheckMatic
XpressCheX
Debit/ATM
card processing is almost exactly like processing
a credit card except for the fact that the order
amount is deducted from the customers checking
account. For more information on this service
check with a Merchant Account Provider for
details and pricing information.
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