Product Overview of Check Services
 
 
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Product Overview of Check Services offered by EZCheck

Electronic Check Transfer (ECT)
 
The EZCheck Electronic Check Transfer program (ECT) combines the benefits of paper checks with the speed, ease and safety of electronic processing. It’s just like accepting a credit card or debit card at the point-of-sale. The check is converted to a paperless transaction by electronically moving funds from the customer’s bank account to the merchant’s bank account. Combined with Check Guarantee, this service delivers a streamlined check acceptance process that eliminates returned checks and returned check fees, while reducing paperwork and trips to the bank. At the same time, it delivers safe and secured cash flow to the merchant.  
 
With the EZCheck ECT program, check writers will continue to benefit from the float of a paper check, since the electronic transaction is processed through the banking cycle in the same amount of time as a traditional paper check. It’s a safe process that uses a secure bank system similar to those used for direct deposits and ATM transactions. Additionally, EZCheck provides conversion and guarantee on both personal and business checks.
 
EZDeposit – Remote Deposit Capture
 
EZCheck’s Remote Deposit Capture service – EZDeposit allows organizations to process and deposit all types of paper checks remotely without having to physically take the checks to the bank.

EZDeposit combines secure web-based software with a check imager to provide organizations a quick and easy method of removing paper from the check acceptance process. By using EZDeposit, personal, corporate, and all other check payments that are received in person, via the mail, or drop box locations can be captured and converted to electronic funds transfer (EFT) transactions for deposit directly to an organization’s checking account.

With EZDeposit businesses improve the availability of funds, simplify and speed up making check deposits, lower deposit and return check fees and increase collection rates - all of which result in significant cost savings.
 
Paper Check Guarantee
 
The EZCheck Check Guarantee service is an easy process at the point-of-sale.The sales clerk enters the customer's information into the point-of-sale terminal or cash register.  In a matter of seconds, EZCheck’s database, which contains millions of records from both local and national negative files of unpaid checks, is accessed.  The database sends back a response to either approve the check or decline it.
 
EZCheck profiles the transaction using proprietary shopping patterns and continuously updates this database with check writing histories drawn from subscribing customers.  With EZCheck's Check Guarantee service, a merchant never has to lose a sale or delay a customer because of high check writing activity.  In addition, if a check we authorize does not clear, EZCheck purchases it for the full amount, up to the check limit, so merchants can increase sales without increasing risks. The reimbursement process is simple and will improve the merchant’s cash flow and reduce administrative costs.
 
Check Verification and Collection Services

EZCheck also offers a low cost check verification and collection program.  A merchant verifies checks through EZCheck's national negative database to see if the check writer has any outstanding check(s) in the system.  If none are found, the system will submit an approval, allowing the merchant to accept the check.  During the verification process, all U.S. and Canadian driver’s licenses and state-issued identifications are verified to meet established guidelines.  EZCheck also validates the transit routing numbers when the checking account number is used for verification.
 
If for any reason the check is returned, the merchant sends it to EZCheck for collection.  The check writer will be added to the negative database and EZCheck will proceed to collect, just as if it were a guaranteed item.  
 
EZCheck gives business owners an affordable alternative with nominal fees per transaction.  When combining verification with collection services, the merchant is provided a comprehensive risk management program designed specifically to meet his business needs.  And with EZCollect merchants are provided with free electronic collections on NSF items.

EZPayment – Back Office/Accounts Receivable Check Conversion
 
By using EZPayment, check payments that are received via the mail or dropbox locations can be captured and converted to electronic funds transfer (EFT) transactions for deposit directly to your businesses checking account.  Additionally the check image is archived online for easy retrieval by the merchant.

EZMobil – Wireless Check Conversion/Guarantee and Verification
 
Wireless Electronic Check Transfer (ECT) is available on the Mobilescape 5000 from Commerciant (www.commerciant.com).

EZApproval – Audio Response Check Authorization
 
EZApproval provides paper check guarantee/verification via audio response from calling a toll free phone number.

EZTel – Telephone Electronic Check Conversion


EZTel allows merchants to initiated telephone-based electronic check transfer services using a web-based service from their own PC.

EZDebit – Recurring Payments
 
EZDebit allows merchants to automatically initiate payments to customers’ checking accounts on pre-authorized frequencies using a web-based service from their own PC.
 
The Electronic Check Transfer (ECT) Process
 
ECT Electronic Check Conversion With Guarantee

Two Programs:
  1. ECT Plus (Imaging) – the check is processed through the check imager and handed back to the check writer and the image is uploaded to EZCheck.
  2. ECT (Non-Imaging) – the check is processed through the MICR reader and handed back to the check writer.   The check-writer information is recorded on the authorization slip or captured on the invoice or work order.
A MICR check reader or imager MUST be used with Electronic Check Conversion.

For the check to be guaranteed:

Before processing the check through the check reader or imager, the merchant must:
  1. Verify and write the check writer’s Driver’s License state and number on the face of the check.

  2. Write the telephone number with area code on the check if not imprinted.

  3. Write the physical address on the check if there is a P.O. Box.

  4. Verify that the check is made out to the business name.

  5. Verify that the bearer of the check is the writer of the check and the owner of the account.


Electronic check conversion uses the following steps:
  • The merchant accepts the customer’s check as payment.

  • The merchant swipes the check through the check imager or MICR reader.

  • The merchant enters the amount of the check on the keypad and the ID number.

  • The information is matched against a nationwide database and the terminal delivers either an authorization or denial response.

  • A receipt is printed which the check-writer signs. This authorizes EZCheck to electronically debit the customer’s account.

  • After the check-writer signs the receipt, the check is stamped “VOID ” and returned to the customer.

  • The funds are automatically deposited into the merchant’s bank account.

Merchant Benefits of Electronic Check Conversion:
  1. No paper checks to handle. No deposits, no returns. No lost or stolen checks.

  2. Ability to accept checks as liberally as credit cards.

  3. Cash flow from checks is fast, safe, and guaranteed.

  4. Reduce or eliminate certain bank fees such as line item fees and returned check fees.

  5. No debits on bank account for returned checks (face value and service fee).

  6. No paper check deposits to manually prepare.

  7. Check funding directly into single account for multi-locations businesses.

  8. No paper warranty checks to be submitted.

  9. No paper warranty checks to be rejected by guarantee company.
Checks that can NOT be processed electronically by check conversion:
  • Third-party checks
  • Payroll checks
  • Temporary checks
  • Checks drawn on non-USA banks
  • Checks not written for goods or services. (No check cashing)
  • Credit Card Convenience Checks
Additionally, STOP PAYMENT checks are NOT GUARANTEED.

Don’t Forget!



The Process for the Merchant at the Point of Sale

  1. Make sure the necessary information is on the face of the check.

  2. Swipe the check through the check imager or reader.

  3. Have the customer sign the authorization receipt.

  4. Stamp the check “VOID”.

  5. NON IMAGING MERCHANTS ONLY *** Record the following required information on the authorization receipt:

    • Printed name of the check-writer
    • Phone number with area code of the check-writer
    • Physical address of the check-writer

  6. Give check and signed duplicate receipt back to the check writer.

  7. Keep the original signed authorization receipt and check-writer information on file for two years.
If the customer does not sign the authorization receipt, the transaction must be voided and the check physically deposited
in the bank.  A check cannot be voided after the terminal is batched out for the day.

EZDeposit – Remote Deposit Capture

How It Works

EZCheck’s EZDeposit service enables the digital capture and processing of checks and remittance coupons using a proprietary software application and a check imager on your existing PC. The service captures transaction and image data and securely transmits that data to EZCheck for payment processing.

The transaction data and images are stored and securely transmitted in batches that can be balanced and corrected prior to transmission to EZCheck. Voiding and editing of transactions from a batch is supported at the PC.

Once EZCheck receives the batch, the transactions are processed via the ACH or Image Processing networks and funds are settled directly into the merchant’s account. Online reporting is available to view transaction and funding reports, and to view archived images for reconciliation or collection efforts.


Benefits
  • Improves the availability of funds on check deposits
  • Reduces or eliminates check deposit and return check fees
  • Increases collection of non-sufficient funds (NSF) checks
  • Reduces risk by providing return information much quicker
  • Reduces or eliminates the need for multiple deposit and sweep accounts
  • Reduces administrative costs associated with preparing deposit slips, encoding checks, transporting checks and reconciling deposits

Common Questions regarding EZDeposit – Remote Deposit Capture
  1. What equipment is required?
  2. A pc with Internet access and the imager connected to a dedicated USB port.  Imager is either RDM 7000 (dual-sided) or various high-speed batch imagers.

  3. What special software is involved?
  4. None. The software is web server-based.  There is an imager driver that gets loaded locally during set up, which resides on the merchant’s pc.  Additionally, administrator rights and privileges are required to load EZDeposit on each pc.

  5. Are the transactions guaranteed?
  6. No. Guarantee is not part of the service, but EZCheck can provide collection services.

  7. When is the merchant funded?
  8. Standard is 2 banking days.

  9. How long does it take to set up a merchant?
  10. A minimum of 5 business days to underwrite and set up merchant ID’s and passwords.

  11. What paperwork is needed to sign up an account?
  12. An EZDeposit merchant agreement (available by contacting EZCheck) and a voided check.  Additionally the RDC New Account Set Up Sheet is needed.  All entries on the set up sheet must be completed.

    EZCheck may require additional supporting documentation for underwriting such as merchant financials, history, credit card information, or current check processing information depending on merchant type and check volume.

System Requirements – ASP/Browser Based Application

For organizations with a lower volume of checks to be converted, the following is required: a PC with Windows XP, IE6.0 or higher, and a check imager. For your customers with higher conversion volume, the required operating system would be Windows XP.

System Requirements – Scan and Key Single Pass
  • Windows XP with Service Pack 1 or 2; or Vista Business, Enterprise or Ultimate Editions
  • Internet Explorer 6 with 128 bit encryption
  • 3MB of available hard-disk space
  • Available USB 1.1 Port
  • Internet connection
  • AC Power Outlet
  • High speed connectivity is recommended but a dial-up connection will work in this environment
For high volume Remote Deposit Capture (CAR/LAR), the following requirements are in place:

System Requirements – High Speed Batch Processing
  • 500 MHz Processor with 256 RAM
  • 1.2 GHz Processor required for 90 DPM Models
  • Windows XP with Service Pack 2 or Vista Business, Enterprise or Ultimate Editions
  • NET 1.1 Framework
  • 10 MB of available hard disk space
  • Available USB 2.0 Port Required
  • Broadband or Equivalent Internet Connection
  • AC Power Outlet
  • Uninterruptible Power Supply Recommended
  • High speed connectivity is needed, i.e. DSL, Cable, Broadband
Imager Requirements:

RDM EC 7011 or EC 7011f (includes franker) is a DOUBLE SIDED Imager for running one check at a time and manually entering dollar amount. This simple-to-use system will easily accommodate processing up to approximately 30 checks per day.

Panini Multiple Check Scanners are high-speed imagers capable of feeding and imaging 30, 60, or 90 checks per minute.  These work only with organizations using the batch processing set up and not single check processing.  This system is designed for businesses processing 50, 100, or up to 1,000 checks per day.

PAPER CHECK GUARANTEE
With Paper Check Guarantee, the check is authorized at the point of sale, and the merchant must manually take his checks to the bank.

The merchant can sign a “Bank Authorization” form which allows the merchant’s bank to forward returned checks directly to EZCheck for handling, thus eliminating the need for the merchant to handle the check a second time.

Premium Options which the Merchant Can Purchase:
  • Quick Pay – For an additional cost the merchant’s returned checks will be settled weekly.

  • NSF Coverage – Covers bank return fees to merchant account.

  • Stop Payment Coverage – Covers Stop Payment checks.
NOTE:

Paper Check Guarantee is a good product for the merchant who may already have a credit card terminal and will not need to purchase all new equipment.

Requirements for a Check to be eligible for Guarantee



For complete details, have the merchant refer to the detailed information in the Merchant Welcome Packet he will receive upon approval.

The Process for the Merchant at the Point of Sale
 
  1. Make sure the necessary information is on the face of the check:
    • The check-writer’s state and driver’s license number.
    • The check-writer’s telephone number with area code.
    • The check-writer’s physical address if there is a P.O. Box.
    • The authorization code

  2. Swipe the check through the check reader or key in the prompted information.

  3. Write the Authorization Number on the face of the check.

  4. Deposit the check in the bank as usual.

Verification Only - with Collection

This program is ideal for the merchant who handles his own collections or who has a small business and wants to minimize costs. There are no discount fees for this service, however, there is a monthly minimum fee, a statement fee and a transaction fee.

For those merchants processing large numbers of checks, a check reader is recommended for the sake of time, however a check reader is not required for Verification only.


How it Works

After EZCheck approves the check, the merchant manually deposits it in the bank.  The check writer’s Physical Address, Phone Number, and Driver’s License should be on the check so they have a better chance to collect on any returned items.

If the check is returned:

The merchant has two options regarding the bank authorization form:
  1. The merchant can sign the bank authorization form and mail it to EZCheck. EZCheck will then forward the check(s) to the bank and the bank will send any returned checks back to EZCheck for collection.
OR
  1. The bank can send the returned check(s) back to the merchant and the merchant will determine which checks to send to EZCheck for collection.

Returned checks submitted to EZCheck for collection will be added to EZCheck’s national database and assigned to licensed collection agents.  The merchant will receive 65% of all collected monies on the full-face amount of the check.  EZCheck provides monthly payment and reconciliation statements to the merchant.

 
Mail Order Electronic Check Transfer

Electronic Check Transfer, either with Guarantee or Verification, can be used for business or personal checks received via the mail as well as face-to-face.  There are three main differences with mail order conversion from point-of-sale conversion:
  1. Since the checkwriter is not in front of the merchant, NACHA does not require that the merchant obtain a signed receipt for each check conversion transaction.  However, NACHA does require that the merchant notify checkwriters in advance of sending in payment that they will convert their checks to an EFT.  This notice must be communicated in writing and is typically put on the order form or a payment coupon.  EZCheck will supply the merchant with the wording to be used for the notification.
  2. Mail order accounts are typically set up with no driver’s license requirement in the terminal or on the physical check.
  3. The ECT agreement for these accounts must also be accompanied by the Mail Order Addendum that spells out the terms and conditions of mail order processing.

Mail Order Paper Check Guarantee

Paper check guarantee is also available for business or personal checks received through the mail. There are two main differences between mail order guarantee and point-of-sale guarantee:
  1. Mail order accounts are typically set up with no driver’s license requirement in the terminal or on the physical check.
  2. The Check Guarantee agreement for these accounts must also be accompanied by the Mail Order Addendum which spells out the terms and conditions of mail order processing.

EZCollect – FREE Electronic Check Collections

EZCheck offers you a residual opportunity for those customers who do not buy a check service from you. EZCollect – Electronic Check Collections – allows you to offer a FREE check collection service to businesses with a residual opportunity for you.

By signing up the merchant for EZCollect with the enclosed application and a voided check from the merchant, they can forward (or have their banks forward) their returned checks to EZCheck for free electronic collections on Non Sufficient Funds (NSF) items. Any checks that clear are reimbursed to the merchant for full face value. EZCheck also attempts to electronically collect the maximum state allowed consumer returned check fee as well.
 

No Equipment – No Rates – No Fees - No Monthly Minimums.

Benefits
  • Simple, NO COST electronic collections of NSF checks
  • Returned checks can be automatically directed from your bank to EZCheck
  • Collected checks paid monthly via electronic deposit
  • No equipment or check authorizations required
  • Available collections on all other returned checks

How It Works
  1. Merchant enrolls in the program by sending EZCheck a service agreement and voided check.
  2. EZCheck sends out welcome kit including merchant ID, point-of-sale notices, and other program information.
  3. Merchant posts EZCollect notices at each point-of-sale location.
  4. Merchant accepts checks as they normally do in their business and write their EZCheck merchant ID number on the front of the checks prior to depositing checks in their bank.
  5. Merchant can forward (or have their banks forward) their returned checks to EZCheck for free electronic collections on Non Sufficient Funds (NSF) items.  Any checks that clear are reimbursed to the merchant for full face value.
  6. EZCheck will attempt to collect checks returned for reasons other than NSF if the merchant wants this option.  Any checks collected under this option are reimbursed to the merchant at 65% of face value.

EZCollect Common Questions:
  1. Is any equipment required?
  2. a.    No.  No equipment or check authorization is involved.  The merchant accepts checks however they wish in their business.  They send their returned items to EZCheck for electronic collections.

  3. What are the fees to the merchants and corresponding buy rates?
  4. a.    No fees or monthly minimums to the merchant and no buy rates to the sales office.  Any item we are able to successfully collect the consumer returned check fee earns an agent residual as well.

  5. What returned checks are eligible for this service?
  6. a.    Non-Sufficient Funds (NSF) checks only.  Checks returned for any other reason are not eligible for EZCollect per banking regulations.  If the merchant wants to send us other types of returned checks (such as Account Closed) for collections, we will accept those checks and work them as regular collection items.  If we collect on those items the merchant is reimbursed 65% of face value.

  7. When do merchants get paid?
  8. a.    Collected checks are paid monthly via ACH.

  9. What happens after I send in the merchant app and voided check?
  10. a.    We send the merchant a welcome kit that includes their merchant ID, point-of-sale stickers they must post, and other instructions on the service.  There is no file to build or equipment to download.

EZPayment – Accounts Receivable/Back Office Check Conversion

How It Works

EZCheck’s EZPayment service enables the digital capture and processing of checks using the virtual terminal and check imager. The service captures transaction and image data and securely transmits that data via batch to EZCheck for payment processing.

Once EZCheck receives the batch, the transactions are processed via the ACH network and funds are settled directly into the merchant’s account. Online reporting is available to view transaction and funding reports, and to view archived images for reconciliation or collection efforts.

EZPayment is available with Guarantee, Verification, Collections, or solely as ACH processing without any authorization.

Benefits
  • Improves the availability of funds on check deposits by up to 3 business days
  • Reduces or eliminates check deposit and return check fees
  • Increases collection of non-sufficient funds (NSF) checks
  • Reduces risk by providing return information much quicker
  • Reduces or eliminates the need for multiple deposit and sweep accounts
  • Reduces administrative costs associated with preparing deposit slips, encoding checks, transporting checks and reconciling deposits
Equipment:  RDM 5000 or 6000 series imagers or Magtek MICR Imager connected to a PC with high speed internet access.  Note, the Magtek imager requires configuration before it will work.

 
EZMobil – Wireless Check Conversion/Guarantee or Conversion/Verification

Benefits
  • Businesses can increase sales by safely accepting checks from remote locations
  • Protects businesses from bad check losses
  • Reduces businesses’ costs for handling and collecting on returned checks
  • Check conversion reduces bank fees for depositing paper checks
  • Check conversion reduces bank fees from returned checks

How It Works

EZMobil is available on the Mobilescape 5000 from Commerciant.  It falls under the standard Conversion/Non-Imaging program requirements.

EZMobil Common Questions:
  1. What are the fees?
  2. Standard EZCheck fees apply plus the merchant will also be invoiced by Commerciant for the wireless charges per their agreement.

  3. Do I need to sign up as a reseller with Commerciant?
  4. Yes. Also you should get familiar with their fees, customer service, and billing processes.
     
  5. How does the merchant get set up?
  6. By sending the check processing app to EZCheck.  Then EZCheck will transmit the merchant MID and other set up data to Commerciant.  Commerciant loads and ships the terminal.  Commerciant also provides the merchant terminal support.
 
EZTel – Telephone Electronic Check Conversion
 
EZTel provides merchants with a secure and easy way for consumers to pay by check over the phone.  With over 90% of U.S. households having access to checking accounts, EZTel allows merchants to offer a new payment option to a large portion of the population.

By using EZTel, telephone check transactions can be verified against national check writer databases, bank account validation databases, and account status databases.  Approved transactions are converted to electronic funds transfer (EFT) transactions for deposit directly to the merchant’s checking account.

Benefits
  • Allows merchants to accept and process checks over the phone
  • Eliminates the need to wait for checks to arrive in the mail
  • Reduces lost sales from customers who never mail their check
  • Allows merchants to fulfill orders more quickly
  • Allows merchants to make sales from customers not able or willing to use a credit card

How It Works

EZCheck’s EZTel service enables the electronic processing of checks from telephone-initiated transactions using the consumer’s checking account information. The operator simply enters the consumer’s information from the face of the check into the EZTel secure gateway.  From there, EZCheck verifies the consumer and account information in real time and simultaneously creates the Electronic Funds Transfer (EFT) to debit the consumer’s checking account, and deposit the funds directly into the merchant’s account.

Online reporting is available to view transaction and funding reports as well as the status of individual transactions. EZTel comes complete with multiple search methods and multiple user options.

Unique Features

No Additional Equipment – EZTel does not require any additional hardware or software.  It runs on standard PC’s with internet access.  

Returns Re-initiation – Transactions that return for Non-Sufficient Funds are eligible for additional representment via the ACH system.  

Collections – Additional EZCheck collection services are available to EZTel clients.

EZDebit – Recurring Payments

EZDebit enables merchants to process consumer payments by automatically initiating a charge to their checking account each time a payment is due.  The web-based interface controls the timing of payments that can be scheduled with any frequency up to one year in advance.  

Customers will enjoy the ease and convenience of not having to mail payments and merchants’ businesses will benefit from increased cash flow, improved productivity, and customer retention.

Benefits
  • Improves profitability by saving on costly invoice processing – paper, envelopes, postage, and the labor to put it all together
  • Ensures predictable cash flow – no waiting for mailed in payments
  • Increases productivity through streamlined operations
  • Heightens customer retention and satisfaction
  • Reduces or eliminates check deposit and returned check fees.
How It Works

Customers simply complete a one-time enrollment form that authorizes merchants to process their payments automatically.  Then, the user enters payment information into the secure online interface to establish the parameters of each payment.  The robust web-based management system provides the most flexible timing controls on the market today.  Online monitoring and reporting systems give users the tools needed to effectively manage accounts receivable records and provide needed flexibility to accommodate customer needs.

Whether merchants have a few accounts or thousands, EZDebit can effectively meet all billing needs.  With a special Customer Reference field, users can record proprietary customer information like order numbers, product numbers, or customer account numbers.  The service also allows merchants to store both active and inactive customers, and provides the ability to upload existing customer databases to save time and money.

Unique Features

No Additional Equipment – EZDebit is web-based and does not require any additional hardware or software.  It runs on standard PC’s with internet access.

Returns Re-initiation – Transactions that return for Non-Sufficient Funds are eligible for additional representment via the ACH system.



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