Check Services

Paying by check remains a popular form of payment for consumers. In fact, more checks are written than any other single form of payment method still today in 2004. Accepting checks has its problems, but First-Trans may have the right solution.

There are several ways you can accept checks, but first, let’s clarify a common misunderstanding and review some terminology.

Because all checks take a couple days to clear the Fed, no service (at this time) will completely ensure that any funds are guaranteed to be available. Monies in the account could simply be removed from the time they were determined to be in the account to the time the monies are cleared. As a result, it is not necessary for a service to verify funds are in an account when accepting a check.

As a business owner, you can pay a fee (think of it as insurance) to have someone else (a check service, like us) take the risk. This is called a “guarantee.”

Here are some other definitions to consider:

  • Recovery – Attempting to collect on check returned NSF (non-sufficient funds)
  • Electronic Recovery – Recovery done by converting an NSF check to an electronic transaction
  • Conversion – The process of converting a paper check to an electronic transactions
  • Verification – The process of verifying that the check writer (done by drivers license number) is not in a database of bad check writers, and that the checking account used is valid and currently open (done by checking routing number and account number on the check)
  • Guarantee – When the company verifying the check takes the risk of accepting the check.
  • Check Reader – A device that ‘reads’ the MICR image off the bottom of the check
  • Check Imager – A device that ‘images’ (takes a digital picture) the front and back of the check

A couple things to note:

  • Electronic transactions are presented ahead of paper transactions, and thus have a higher chance of being honored.
  • Paper checks can be deposited once more after being returned NSF, whereas electronically converted checks can be presented two additional times.


Menu of Check Services

First-Trans provides Electronic Recovery free to all of its Visa/MC processing customers.

  • The NSF check is forwarded from the depositing bank directly to First-Trans,
  • The NSF check is immediately converted to an electronic transaction, and is re-attempted up to two more times (click on link for more details on the advantages of this process)
  • When the funds are collected, the full value of the check is paid. The bad check writer is assessed a fee (based on state).
  • 70-80% of the time, we collect it electronically. If we are unable to, we can proceed with attorney collections for a contingency fee of 30% of the face value of the check.

    Fees: Your Account Executive can provide an exact quote.

    • A one-time set up fee is all you ever pay provided you remain a First-Trans Visa/MC processing customer

    > Advantages      > Questions & Answers

Traditional Paper Guarantee

  • No equipment needed, you simply key in all required information into your credit card terminal
  • The check is verified, an approval is given and the funds are guaranteed.
  • The paper check is deposited as usual and if it is returned, you simply mail the NSF check in, along with the approval code, and you are reimbursed the full value of the check.

    Fees: Your Account Executive can provide an exact quote.

    • You pay a monthly fee for the service
    • There is NO equipment required
    • The cost per transaction is about the same as what it costs to accept a credit card:
      • There is a flat transaction fee (about a quarter),
      • Plus a percentage of the amount (less than 2%).

    > Advantages      > Questions & Answers

Electronic Conversion & Verification (w/ No Guarantee) – SILVER PROGRAM

  • A check reader is required, you swipe the check, and key in the presenter’s drivers license info and amount of sale into the credit card terminal
  • The check is verified, an approval is given and the funds are electronically deposited into your account
  • The paper check is handed back to the check writer, a slip is printed on the credit card terminal which the customer signs authorizing the conversion.
  • Our funds are deposited into your account, and we are paid on the transaction. Provided the funds clear, the transaction is complete, and you already have your money from us. If the funds do not clear, we re-attempt a couple times. If still unsuccessful, we withdraw the amount of the transaction we deposited to you and its your responsibility to collect.

    Fees: Your Account Executive can provide an exact quote.

    You pay a monthly fee for the service

    • A check reader is required.
    • The cost per transaction is about the same as what your bank would charge for a deposited item:
      • There is a flat transaction fee (about a quarter).
      • There is no percentage charged as there is no guarantee provided.

> Advantages      > Questions & Answers

Electronic Conversion, Verification & Guarantee – GOLD PROGRAM

  • A check reader is required, you swipe the check, and key in the presenter’s drivers license info and amount of sale into the credit card terminal
  • The check is verified, an approval is given, the funds are electronically deposited into your account, and are guaranteed
  • The paper check is handed back to the check writer, a slip is printed on the credit card terminal which the customer signs authorizing the conversion.
  • Regardless of whether or not the funds clear, you already have your money from us, and it is our responsibility to collect.

    Fees: Your Account Executive can provide an exact quote.

    You pay a monthly fee for the service

    • A check reader (or imager) is required.
    • The cost per transaction is about the same as a credit card transaction:
      • There is a flat transaction fee (about a quarter).
      • Plus a percentage of the amount (less than 2%).

> Advantages      > Questions & Answers

Accounts Receivable Conversion - ARC PROGRAM

  • A check imager and your normal pc is required
  • You gather checks that have been mailed in or dropped off
  • Swipe the check, and key info into software we provide on your pc
  • The check is converted, and the funds are electronically deposited into your account
  • The paper check is stamped processed and filed away safely
  • Provided the funds clear, the transaction is complete, and you already have your money from us. If the funds do not clear, we re-attempt a couple times. If still unsuccessful, we withdraw the amount of the transaction we deposited to you and its your responsibility to collect.

    Fees: Your Account Executive can provide an exact quote.

    • You pay a monthly fee for the service
    • A check imager is required.

    The costs:

    • There is a flat transaction fee
    • No percentage as there is no guarantee on the funds

> Advantages      > Questions & Answers

Recurring Charges / Checks by Phone / Fax / Internet

  • Software from us is required, which will run a normal pc
  • Simply enter info into the user friendly interface / software
  • Transaction is created and funds are electronically deposited into your account
  • Provided the funds clear, the transaction is complete, and you already have your money from us. If the funds do not clear, we re-attempt a couple times. If still unsuccessful, we withdraw the amount of the transaction we deposited to you and it’s your responsibility to collect.

Fees: Your Account Executive can provide an exact quote.

  • You pay a monthly fee for the service

The costs:

  • There is a flat transaction fee
  • No percentage as there is no guarantee on the funds

> Advantages      > Questions & Answers

 
 

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First Trans Payment Solutions is a an authorized agent of iPayment, Inc.