Posts Tagged Business
Chargebacks and The Automated Clearing House
Chargebacks in the ACH world are when a customer notifies their bank that a debit initiated by a merchant was not authorized. Chargebacks can be very time consuming, costly, and can result in a loss of reputation or even in loss of processing capability for a merchant.
Chargebacks are an area of concern for the merchants and processors because of their implications. Typically a chargeback implies that some type of fraud is going on with a merchant and/or that fraud is being committed against a merchant or a customer.
Even through the reasoning for a customer to initiate a chargback against an item on their statement might be bogus, the burden of proof to resolve chargeback issues lies with the merchant. A merchant needs to provide the ACH authorizations for any debit that was initiated against a customer within a specified period of time in order to win the dispute.
Chargebacks can be the result of the following:
- Point-of-sale processing errors
- Customer dispute
- Post-transaction
- Potential fraud
- Authorization-related
The chargeback process can be a difficult and frustrating. First, the customer contacts their bank to initiate a refund for a purchase made on their account. The bank then researches the validity of the dispute while providing a provisional credit to the customer. Next, the bank initiates the process by obtaining credit from the merchant’s account through the merchant’s processing bank. The merchant’s processing bank then performs their own research and validation.
The merchant’s bank either declines the chargeback or removes the chargeback amount from the merchant’s account and provides written notification to the merchant. The determination as to what decision is made is based on the documentation provided to the bank by the merchant. If the documentation is satisfactory, the chargeback is declined and the customer is charged again for the sale. If the documentation is unsatisfactory, the chargeback is successful, ending the process.
If a processing error occurred, the sale is re-presented to the bank for corrections.
Maintaining a respectable chargeback rate is a necessary aspect of ACH fraud protection practices. Processors are required by NACHA to keep an overall chargeback rate of under 2 percent. Processors hold merchants to this threshold as well. If chargebacks ever become too abundant for either processors or merchants, banking relationships can be severely impacted or even terminated.
In order to keep chargebacks and other issues to a minimum, it is important to obtain the appropriate authorizations from customers, gain an exact understanding of what proper authorizations entail, and to keep them on file for at least 2 years.
Different transaction types usually have different authorization requirements. For instance, an authorization to initiate a debit to a customer’s account via the telephone (a TEL transaction) has different authorization guidelines and requirements than a transaction that was initiated by a customer in person.
For more information and to see the different transaction types and authorization requirements check out this link: ACH Transaction Types
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Check out our list of ACH Return Codes and Reasons
Top 10 Reasons to Consider ACH for your Business in 2011
Posted by vericheck in Business Solutions, Main, Payment Processing on March 20, 2011
There are many reasons why a business should consider adding ACH capability to their portfolio of payment processing instruments and in this article I intend to highlight the top 10 reasons.
Before I begin, I will provide a brief introduction to the ACH system…
The ACH (Automated Clearing House) network provides electronic clearing of payments for participating depository financial institutions. Transactions are initiated during the day by merchants and at the end of each business day, transactions that have accumulated are sent electronically in batches to the The Federal Reserve. The FED sorts and routes transactions to their appropriate destination and debits or credits bank accounts accordingly.
The ACH network utilizes customer bank account and routing information to initiate transactions. This data is obtained from customers by merchants. Merchants have the ability to use several different methods to obtain customer payment information.
The Top 10 Reasons to Consider ACH for your Business in 2011
- ACH provides businesses with payment flexibility for customers.
- ACH payments are environmentally friendly, they lower carbon emissions and reduce paper expenditure.
- Money is received faster and on time (decreases check float time). No more waiting on checks in the mail.
- Allows customers the ability to pay for products or services online, especially if they do not have credit cards.
- Receiving payment via ACH reduces costs. ACH transactions typically cost only a fraction of what it costs to accept the same transaction by swiping or manually inputting the customer’s credit card.
- You can convert paper checks into ACH transactions right at your place of business – No more trips to the bank!
- Eliminates NSF fees your bank charges your account when a customer’s check bounces. It also gives you improved ability to collect on NSF (non-sufficient funds) items
- THE BEST option for recurring payments
- Customer does not have to be present to give their payment information. You can initiate payments based on phone authorizations, authorizations received by fax or email, or authorizations received by internet
- There are no hardware requirements to obtain ACH capability, only a computer and an internet connection are required. All software is free, internet based, easy to use, and has feature rich reporting tools.
Here are some current ACH statistics
- 90% of the US population has a bank account (175 million people)
- Over 19.1 Billion ACH transactions are processed annually
- 37.2 trillion dollars are processed through the ACH network annually
- Electronic payments have been increasing at a rate of 9.3% annually
Have your own reason why you love ACH? Have some of your own statistics? Leave a comment below!!
– Article by Zac Ebrams
ACH and Check Processing – Electronic Checks | ACH | VeriCheck
Posted by vericheck in ACH processing, Business Solutions, Main, Payment Processing on February 18, 2011
ACH and Check Processing – Electronic Checks
- Accept checks by phone
- Accept checks online
- Accept checks through your web site
- Check image capture and storage
- Free customer support
- Online virtual terminal access
- Dynamic reporting functionality
- Recurring ACH payments
- Subscription payment plans
- Paper check conversion
- Remote Deposit Capture
Since the early 1990s Vericheck, has offered check processing services to merchants. Over the years our service offerings have evolved to meet the ever-changing needs of modern day business. From one time transaction processing to recurring billing, we process payments for a variety of clients across the country. Our unique, in-house ACH & check processing capabilities allow us to service the entire spectrum of payment types. We have multiple program options for both check present and check not present transactions. Our verification which was the basis of our company’s beginning, is now standard on all of our products. We also still offer our guarantee program for qualifying merchants!
Law Firms and The ACH
Posted by vericheck in ACH processing, Business Solutions on February 8, 2011
One industry in particular that can gain a competitive advantage amongst competitors by utilizing an ACH program, is the legal and litigation industry.
Many law firms already utilize the ACH system and dozens more are converting their operations and streamlining the way they do business everyday.
Some of the great uses of ACH systems for law firms are:
- The ability to put clients on payment plans by using the recurring billing feature
- The ability for clients or people who owe money to go onto the law firm’s website and pay
- This allows customers to make payments 24/7
- Some customers may not be able to make a payment during normal business hours
- It cuts down on the staff requirements of having to take payments from customers
- It allows payments to be made by customers over the phone
- When a law firm sends mail, certified or otherwise, recipients are able to log on immediately to the law firm’s website and make a payment
- This helps with issues of embarrassment of a payee having to call in.
- Right on a law firm’s website, a customer can set themselves up for a payment plan
- Giving clients several different options when it comes to settling debts or fulfilling obligations ensures client satisfaction and also increases the chances that you will get your money
- Multiple bank accounts can be set up so monies go into the appropriate accounts while all operating expenses come out of a separate account
- With customers paying via ePayment (ACH payments) costs for accepting payments are much lower then when accepting via credit cards
- You can add customers to a Customer Database to keep track of them and to store their information (including payment information) in a secure and compliant web portal
- All transactions are logged and can be viewed 24/7 online
- A law firm can set up 50 different users under one account and assign various permission levels so each staff member has their own log in/password and custom view.
- Feature rich reporting capabilities allow you to generate many different reports instantly 24/7
- For prospective clients who need legal services and may not be able to afford to pay for them all at once, payment plans can be coordinated and put into the system to charge the customer incrementally.
For more information visit www.vericheck.com
ACH Benefits
There are many benefits associated the ability to process ACH payments. Both customers and business owners/operators benefit when a proper ACH processing system is in place. The ACH system also benefits the environment.
- Eliminates the need for paper checks
- No more envelopes, stamps, or paper statements
- Eliminates time and costs associated with having to bring deposits to the bank
- Payments clear faster
- Eliminates NSF charges
- Returned items can be resubmitted effortlessly, automatically, and instantly
- Decreases fraud
- Increases revenue
- A fraction of what it costs to get paid with a credit card
- Provides for perfect record keeping
- Increases payment forms for customers
- Customers can pay their bills effortlessly
- You can take payments from customers instantly with your smartphone
- Verification on all transactions
Join the discussion! Post a comment or a question
VeriCheck Reseller Program
Check and ACH Processing | Reselling Partner Opportunity |
If you are in the Credit Card business, Collections, Communications, Law, Sales or Marketing fields, personally or as a corporation you can become an affiliate of VeriCheck at no cost. On a full or part-time basis, you can build an additional or main stream of income with our solid and proven business solution!
VeriCheck has been in business for nearly 20 years and is currently one of the most trusted names in the ACH and Check Processing industry. VeriCheck has affiliate partners operating in almost all 50 states. Our reselling partners earn money by helping clients run their businesses more successfully.
Our system will provide you with a sales and income opportunity like no other! With our solutions, you will be able to offer businesses a way to increase their receivables while also reducing operating expenses. VeriCheck also offers free NSF check collection services to merchants…. That’s right, you can tell prospective clients that you will help collect their bad checks as an added service for FREE.
All of our services are provided for less than half of the cost it typically takes for a merchant to accept a credit card!!
Our Check and ACH reselling program is the most preferential in the business with the lowest costs and the most lucrative splits that you will find!
We also commit to helping you succeed in your new endeavor as our reselling partner. You will have access to all VeriCheck marketing materials which can be branded specifically for your organization. We also have a team of ACH and Check Processing experts to help you every step of the way.
Here are some potential markets for our electronic payments service:
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For more information check out Website: www.vericheck.com/affiliates
Has snow been delaying your receivables?
With ACH processing, you will never have to wait for a check in the mail again! All your receivables can be paid online with just a few clicks of the mouse!
STOP WORRYING about when your money will arrive, and get proactive!
VeriCheck has your solution, and we guarantee to provide our services at the lowest cost!!
Included with our “receive check payments via the internet” solution, we give you the ability to charge a checking or savings account by obtaining information and authorization from your payee over the phone, by fax, or by email.
Our products are the exemplification of the technological trends of the future, and they are available and affordable now!! Thousands of organizations currently utilize our system and will never look back!!
Its time to get your business affairs in order, and we would love to help!!
Visit our website
or call us 866 VERICHECK
or send me an email Zace@vericheck.net
Virtual Check Terminal
Posted by vericheck in Check scanning, Main on January 4, 2011
VeriCheck’s solutions provide a way for businesses to access an online check terminal where you are able to debit a customer’s account instantly!
With our solutions your organization will have the ability to access a web-based processing terminal that is the only payment vehicle your business will ever need. Accept payments from customers who call in to make to make a payment, take faxed payments, or create simple payment forms that can be inserted into emails or web pages.
VeriCheck’s solutions are not only easy to use, cost effective, and fast, they are great for the environment!
With VeriCheck you can cut out the costs (both in dollars and to the environment) that your organization expends doing business utilizing old world methods. No more money and resources wasted on stamps, envelopes, ink cartridges, or paper. Our all encompassing system will decrease your organizations carbon footprint, and streamline the way you do business.
The days of utilizing the postal service to collect payments from customers are long gone. With VeriCheck, your organization can now take payment from a customer’s account instantly, and for less than it costs to purchase an envelope and a stamp. Not only is it easier and less expensive, it is safer and faster!
Our service is great for collecting monthly premiums, monthly fees, and other payments that are collected on a regular basis. With VeriCheck all customers are treated as if they were local customers of your business… All customer’s will receive their invoices at the same time and your business will not have to wait for a payment to arrive from across the country via the postal service. Payments can be made instantly in much less time than traditional ways of making payments.
It is 2011, and it would not be an embellishment to infer that almost everyone in the United States has an email account. Email accounts are free, and they usually move with the person who owns the email account. You don’t leave your email account at your old address with your traditional mailbox, it comes with you. These days, most people have emails sent directly to their phone. With VeriCheck, if your customer has an email account, then they can not only receive invoices from you electronically but they can also pay for that invoice instantly.
866 VERICHECK
Electronic Payments are King
Change has been brewing in both the way businesses collect payments from customers, and how customers prefer to pay for goods and services. A study that was recently released by the Federal Reserve Bank of Atlanta, highlights changes that have been happening in the alternatives to cash payments scene.
The current study details emerging trends in noncash payment activity across the United States. It picks up where the previous study (2007) ended and spans 2006-2009.
Since the release of the 2007 study, much has changed in the way that consumers and businesses engage in commerce. Electronic payments have expanded their footprint by increasing from nearly two-thirds of all noncash payments to now representing more than three-fourths.
Excluding credit cards and checks, usage of all other noncash payment forms have steadily been increasing.
Between 2006 and 2009 electronic payments growth has been expanding annually at a rate of about 9.3% . Total annual transaction volume for electronic payments exceeds 84.5 billion, representing a dollar value of over $40.7 trillion.
Of the 84.5 billion electronic transactions, ACH transaction volume made up 19.1 billion, coming in 3rd after debit and credit cards respectively. ACH dollar volume however, represents a whopping $37.2 trillion of the $40.7 trillion electronic payments total.
According to these results, ACH payments seem to be the most trusted and favored payment vehicle based on the amounts of money being moved.
The report released on December 8th represents only a portion of the comprehensive study commissioned by Federal Reserve. More findings will be released sometime early next year, and will detail all the facets of noncash payments more completely.
For the entire report summary click here or for an abridged version, click here
– Article by: Zac Ebrams
Happy Holidays from VeriCheck
Posted by vericheck in Business Solutions, Main on December 20, 2010
Season’s Greetings to All,
VeriCheck would like to take this opportunity to extend our warmest salutations to everyone this holiday season! We would also like to keep you informed on our business solutions and reseller opportunities as the new year rapidly approaches.
Check and ACH Processing
We are a direct ACH processor and we pride ourselves in focusing exclusively on check and ACH products. Doing this enables us to offer unique services, great prices, and unrivaled support for our clients.
We help organizations connect to the exact solutions they need, precisely when they need them. Our team of experts are always available to help businesses realize the benefits that can be achieved by leveraging VeriCheck’s solutions into their operations.
Below are just a few of the the solutions we offer:
Our Solutions
* ACH transactions (TEL, WEB, PPD, CCD, ARC, BOC, POP)
* Check 21 and electronic check conversion
* Integrated check scanner / credit card terminals (Q1 2011)
* Check Guarantee
* Check Verification
* One time scheduled and recurring payment capability
Remote Deposit Capture
VeriCheck provides solutions for businesses that lower expenses, make life easier, and that are environmentally friendly
Our RDC solution offers businesses a low cost and easy way to deposit all checks received directly into any US bank account – right from the office!
- Free software, training, and support
- Small footprint check scanner
- Deposit checks in less than 20 seconds
- Money is available faster than traditional deposit methods
- Check image is safely stored “in the cloud” for viewing anywhere anytime
- Bulk check scanning solutions are also available
We are always looking for new partner organizations that will be able to benefit from the programs and services we offer to merchants.
Contact Information
www.vericheck.com
1-866-VERICHECK
zace@vericheck.net
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