Electronic Check Conversion and Warranty

Stop all those trips to the bank and eliminate bounced checks!

More merchants and companies are using electronic check conversion, which converts information from your paper check into an electronic payment from your bank account. In fact, NACHA – the Electronic Payments Association – estimates that more than 1.7 billion paper checks were converted through in-store and mail-in transactions in 2005.

The check is run through an electronic system that captures the bank account information and the amount of the check. The customer is asked to sign a receipt and receives a copy for his records. When the check information has been processed and the check has been handed back to the customer, it will be voided or marked by the merchant so that it can’t be used again. The merchant electronically sends information from the check (but not the check itself) to the customers bank or other financial institution, and the funds are transferred into the merchant’s account.

This eliminates the float on checks. The amount is deducted from the account on the same day or next depending on the time of day.

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