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Convert paper checks to electronic funds.
Electronic check conversion (e-Checks, or ECC)
is the conversion of a paper check to an electronic
funds transfer (EFT) at the point of sale, using the
check as a source of information—for the check
number, the account number, and the number that identifies
the financial institution. The software Cornerstone
uses to convert the check also captures the check image,
unlike many systems that simply read the bottom line
of the check. Cornerstone completes this package by
providing access to Alaska’s largest check database,
helping you reduce your risk of accepting bad checks
before the customer leaves your store.
How does it work exactly? With e-checks, a check
imager is connected to a small printer through a credit card
terminal directly at the point of sale. When a customer presents
a check, the check is scanned by the imager, the magnetic data
(MICR) indicating the bank routing number and account number
are read, and the dollar amount of the check is entered. The
e-Check process verifies the check by comparing the check's
bank account or the customer’s driver’s license
with Cornerstone’s negative database to determine if the
account has a fraud history, is closed, or has had insufficient
funds (NSF) problems. If the check is approved, a receipt is
printed for the customer's signature. The check and a copy of the
signed receipt are returned to the customer. The captured data
is used in the electronic transfer of money through the Automated
Clearing House (ACH) system.
Some benefits of converting checks to an electronic
form:
- Saves you time with your deposits—no
more ten-key, bank runs or long teller lines
- Lowers traditional bank fees, like
per item deposit and returned item fees
- Funds you quickly, usually within
2 to 3 business days of the original transaction
- Secures your customer’s personal
and bank account information by returning the original
item to the check writer
- Provides your customers complete
transaction information for easy bank reconciliation,
as well as providing sales information, like store
name and location.
- Expandable equipment is simple and
user friendly
- Automatic representment of bounced
checks reduces check loss
- CCS provides active check collections
for any checks that are not honored after the re-presentment
cycle
- CCS calls and notifies check writer
after the check is returned
- Setup is fast and easy, and CCS’
technical support team provides all training
Additional Point-of-Sale, Multi-Lane Integration
The immediate goal is to provide the e-Check solution to both
retail chains and the grocery industry as they move toward the
integration of a multi-lane payment system with their existing
cash registers. Our processor is developing ways to incorporate
e-Checks into the POS registers, beginning initially with IBM,
NCR and ICL POS register systems.
Large Volume Lockbox Check Conversion
Lockbox check conversion refers to the process of electronically
converting large volumes of checks received by companies such
as utilities, cable companies, telephone companies, credit card
companies, banks, property management companies, mail order firms,
etc. Here, the data files would be created by the lockbox facility
check imaging system and forwarded to the processor for data handling
and conversion, which would then be submitted to the ACH Network
for settlement.
E-Commerce for the Internet
Currently, testing is being done for providing a secure check
acceptance method for companies offering merchant processing over
the Internet.
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