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Lockbox Check Truncation is the changing of
a personal paper check into an electronic check. The check
becomes an Electronic Funds Transfer (EFT) and is processed
through the Automated Clearing House (ACH).
The ACH is the federally regulated
electronic payment network used by 95% of US financial
institutions.
The Lock Box Check Conversion program
currently being conducted by the National Automated Clearing
House Association (NACHA) permits companies to :
Electronically
convert check received in payment for goods or services at the
lock box (point of receipt) and processing the payment through
the Automated Clearing House (ACH) network. Your company
or our lockbox processing team
copies payment information electronically, including routing
number, account number, payer and check account number.
Payment information is then transmitted to the ACH network.
The ACH entry flows through the ACH network and debits the
payee account. Settlement is carried out in the same manner as
for other ACH transactions. The company retains the check, or
a legally permissible copy of the check, according the
requirements of the Uniform Commercial Code.
If
you would like an outsourced solution that can provide your
company with fast funds settlement and the ability to access
transaction records on-line we are your solution. Contact
us
How Does It Work?
Merchant receives
check for payment of goods or services via mail. A check
reader or other optical device scans the check. The volume of
checks processed is a key factor in deciding hardware needs.
Smaller volume merchants might best be served by a system that
requires some data entry. Larger companies may opt for a
hardware configuration that automates the entire process:
opening envelopes, reading the account number and dollar
amount, imaging and archiving the check, integrating payment
information into existing accounting packages. It is important
to understand that each company has unique needs and
consequently a unique solution. Hardware costs can vary
greatly. When the batched checks are read they are then
transmitted to the processor for presentment through the ACH.
Payment is made to the merchant in 24-48 hours. The process is
fast and easy to perform: no more bank runs, lost or stolen
checks.
What Are The
Benefits?
The ACH will transfer the funds electronically. The funds will
be transferred into the merchant account in 24-48 hours.
Neither the merchant nor the bank has to process a single
paper check. Low transaction rate. Low NSF fee. No deposit
slips to fill out. No lost or stolen checks to worry about. No
bank runs to make. No bank deposit fees. NEVER an NSF or
processing fee from the bank to the merchant. NSF checks will
show up in several days as opposed to weeks. You can redeposit
immediately. Reduced handling costs. This program is about
money - you get your money a lot faster and improve your float
time.
Because of the unique
needs every business has we would need more information to
suggest a solution to your needs. Contact
us for your solution.
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