Check Processing Services for Your Business
Checks are still a viable and trusted form of payment for many customers. However, businesses face an inherent risk of a check being returned with “Non-Sufficient Funds” (NSF).
When using check processing services through National Funding, you can convert a paper check received from a customer into an electronic transfer that automatically takes funds from your customer’s account and places them into yours. This eliminates returned checks and NSF notices.
This transfer takes place via the Federal Reserve Bank’s Automated Clearing House (ACH) system. It’s a faster, less-expensive way to get your money, and similar to PIN debits, check processing is not subject to chargebacks.
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Here’s how check processing works:
First, customers will complete their paper checks as normal, completing all of the required fields as one would expect to do on any normal check.
Next, the employee will process the check through an electronic reader at point-of-sale. The reader will detect the routing number, account number, check number, and dollar amount of the transaction. Occasionally, the employee completing the transaction will have to verify or manually key some of the information from the check.
Upon acceptance of the check, the funds in the customer’s bank account will be electronically held and prepared for transfer to the business’ bank account. An interim entity, known as a clearing house, will handle the transaction – virtually eliminating the risk for chargebacks and ensuring that the business receives funding in a timely manner.
When preparing your customers for the convenience of electronic check processing, it is important to notify them that you will take their paper check and convert it using electronic methods. While individuals aren’t supposed to write checks on their bank accounts unless required funds are in the account, some choose to do so. Floating funds in this manner is something that will become quite obsolete as more and more businesses convert from simply depositing paper checks in batches at the local bank branch to running checks electronically. Funds clear more quickly than ever before – which is a terrific thing for small business!
Here are some of the key benefits of accepting checks using electronic processing terminals:
- Virtually eliminate the risks associated with accepting paper checks. Non-sufficient funds (NSF) issues are reduced to practically zero, which means that you are guaranteed to receive the funds you need when a check is processed electronically.
- Your customers are less likely to have to deal with the ramifications of not having enough cash in the bank to cover a purchase. Customers will know immediately if their check is backed up by enough funds in the bank – protecting you as the business owner and the client’s relationship with their financial institution.
- You’ll be able to better serve the entire buying public – not just those who choose to use a credit or debit card at point-of-sale. The ability to confidently and securely accept checks as payments will help you accommodate consumers who continue to utilize this viable payment option.
In order to better serve you, simply reach out directly to one of our merchant account specialists and we’ll collaborate on the ideal payment terminal setup for your business. From the necessary hardware to the vital support software, you’ll have everything you need to create the ideal experience for your customers – regardless of their choice of payment style. Once you’ve decided on the perfect merchant services package for your business, you’ll be up and running in no time at all.
At National Funding, we’re in the business of helping businesses – and we are ready to help today! Even if you currently process checks with another company, we’d love the opportunity to show you how affordable our services are and how much your business will benefit from electronic check processing. Contact us today to get started!