Why is the ECT program becoming so popular?

Converting paper checks to electronic checks is a natural process, using proven technology to make checks faster and easier to process.  It is also consistent with the push by the federal government and industry groups to develop and implement electronic transactions.

What are the merchant benefits?

The ECT program offers merchants a number of key benefits:

1. No Returned Checks: With the ECT program and check guarantee, merchants never see a returned check again, because any returned checks become the responsibility of EZCheck.

2. Reduced Paperwork: End of the day balancing and deposit preparation is greatly simplified with the ECT program.  Reports printed from the ECT program will help the merchant know what has happened during the business day.  Once the ECT terminal batch is closed, the merchant is assured that deposits are automatically made through the ACH network, usually within two business days.  Also, while the ECT program won't completely eliminate the need for trips to the bank, it will reduce the frequency, ultimately saving time and money.

3. Improved Cash Flow and Cash Management: Merchants improve their cash management since their ECT funds are available usually within two business days.  In addition, merchants with several locations can automatically deposit checks into a consolidated bank account.

What are the possible check writer benefits?

With EZCheck, check writers will continue to benefit from the float of a paper check, since the electronic check is processed through the banking cycle in the same amount of time as a traditional paper check.  Reconciling bank statements is easier, since more detailed information is provided on the statement.

Why wouldn't a check writer just use a debit card?

Many check writers prefer checks for record keeping purposes, security reasons and for the float.  Not all check writers have access to debit cards, and many merchants have not invested in PIN pads.

Why does the check writer have to sign an authorization slip?

The check writer has to sign a printed ECT receipt to authorize the electronic transaction for the Automated Clearing House (ACH), which in turn forwards the electronic check transaction to the merchant’s bank account instead of depositing the paper check.

What happens if the check writer's account is debited twice?

In case of an error or dispute, check writers have 60 days from the posting date to notify the bank, the same time frame they have today with paper checks.  The bank is responsible for reviewing a dispute or error.

Is this process safe for check writers?

Companies that process payments electronically (checks, credit cards, ATM's) must follow government guidelines.  Check writers retain the same rights they currently possess when disputing fraudulent items posted to their checking accounts.

Is this process regulated by any government agency?

The electronic process is governed under Regulation E, which covers all electronic processing, such as ATM and credit card transactions.

Check Writer Questions

Who can charge my account with an electronic check?

Only merchants to whom you have written a check for purchase can process the check electronically.  Merchants must also require that you sign a slip authorizing the transaction to be electronically processed.

Who gives the merchant permission to electronically charge my account?

You do.  Merchants are required to get your signature on an authorization slip at the time of your purchase.

How will this transaction appear on my bank statement?

A complete description of the transaction is included in the check writer's bank statement for reconciliation purposes, including merchant's name, settlement date and amount.  It will appear with the other electronic payments, such as direct payroll deposits or ATM transactions.

When will my account be charged?

Generally, your account will be charged in the same amount of time as a paper check. (Approximately 2 days.)

Will my financial institution charge a fee for an electronic check?

We do not know of any financial institution that is charging check writers for ACH transactions.

How exactly is the money being moved?  What is the process?

The check is processed from t