Common Terms and Definitions

Check Writer Services
EZCheck department that responds to consumer inquiries on matters such as non-approved checks and solving outstanding disputes.

Closed For Cause
Closing of a consumer's checking account by a financial institution due to non-sufficient funds, unpaid fees, etc.

Collections
Refers to the EZCheck recovery department.

Consumer
A check writer.

Consumer Fee
See Returned Check Fee.

Disputed Stop Payment
Stop payment placed by a check writer due to a complaint or dispute over goods or services.

ECT Service
The EZCheck Electronic Check Transfer service that converts paper checks into electronic items at the point-of-sale.

Effective Rate
Calculated by dividing the charge for check acceptance services by the guaranteed dollars.

Electronic Negative Response Codes
Electronic message, which notifies the merchant the transaction is declined.

EZCheck Recovery Services 
A stand-alone collection agency whose services may be purchased separately by merchants. Check recovery collects as an agent for the client; they do not own the item (as compared to Recovery).

Fair Credit Reporting Act (FCRA)
Federal law, which dictates acceptable and non-acceptable practices and procedures involved in the reporting of credit information related to a consumer.

Fair Debt Collection Practices Act (FDCPA)
Federal law enacted in 1977 to eliminate abusive and deceptive debt collection practices and to ensure that debt collectors who refrain from using abusive and deceptive debt collection practices are not competitively disadvantaged.

Guarantee
Payment, up to a pre-established amount, on EZCheck-approved dishonored checks and amounts closed for cause, provided they meet the guarantee requirements.

Guarantee Check Limit
The maximum dollar limit per check allotted to merchant for reimbursement according to the EZCheck Guarantee Agreement.

Guarantee Limit
Payment, up to a pre-established amount, on EZCheck-approved dishonored checks and accounts closed for cause, provided they meet the guarantee requirements.

Guarantee Payment Cycle
Time frame used by EZCheck for reimbursement to a merchant on a guaranteed item.

Guarantee Requirements
Requirements set forth by the EZCheck Check Guarantee or Verification and Collection Agreement, which must be met before EZCheck merchants receive the guarantee program.

Guaranty Payment
Reimbursement to a merchant for all guaranteed items submitted within a payment cycle.

Inquiry Request
Merchant-initiated transaction which requests either an approval or non-approval on a check for the purchase of goods or services.

Merchant
Any business, which is using EZCheck services. Also known as a "customer", "client" or "subscriber".

Merchant Number/EZCheck Number (MID#)
The account number assigned to each individual merchant by EZCheck.

MICR
Magnetic Information Character Recognition. Imprinted banking numbers (routing/transit number, checking account number, check number) at the bottom of the check.

MICR Number Method
A check authorization procedure, which uses the bank routing/transit numbers, checking account numbers and check number encoded along the bottom of the check.

MICR Reader/Check Reader
An optical or magnetic device used by a merchant, which reads the MICR Numbers (routing/transit number, check number) encoded along the bottom of the check and communicates that information to EZCheck® during the authorization process.

Non-Compliance Item (NCI)
An item submitted for payment, which does not meet EZCheck guarantee requirements as set forth in the EZCheck Agreement.

Notice of Non-Compliance
A memorandum issued to EZCheck customers which outlines any standard that is not in accordance with EZCheck standards.

Non-Sufficient Funds (NSF)
Check return reason for checking account funds not available to cover the check.

Overdraft
Debt owed by a check writer resulting from a checking account being overdrawn.

Over Limit (Check Writer)
Any dollar amount per check transaction, which exceeds the merchant's check limit.

Over Limit (Merchant)
The total dollar amount of inquiries, excluding any amount over the
Merchant's warranty maximum on any one transaction. 

Paid at Store 
Refers to a payment made directly to the merchant for a check after it has been submitted as a claim to EZCheck. (Note: Please call 1-800-468-7967 to report all payments received by the merchant location for items submitted to EZCheck. Please include the check writer's name, ID, check date, dollar amount of payment information and whether the item was submitted for guarantee.)

Point-of-Sale (POS)
Activity involving a consumer and the merchant at the point-of-purchase.

Presenter
Individual presenting a company check.

Refer To Maker
Un-bankable returned check due to reasons such as conflicting or missing information on the check.

Resubmitted
A warranty request sent to EZCheck which had previously been returned to merchant for not meeting the guaranteed requirements. Occasionally, the merchant has obtained new or additional information which he believes will enable the payment request to meet guarantee requirements.

Returned Check
A check that was presented for payment which was dishonored by the check writer's financial institution.

Split Sale
Purchase of goods or services by a check writer when more than one check is issued to pay for a single transaction (usually for the purpose of not exceeding the merchant's check limit maximum), a violation of the EZCheck Guarantee Agreement.

Standard Industrial Classification (SIC) Code
A four (4) digit number assigned to businesses to identify their specific trade category.

Stop Payment
Reason for returned check; consumer has instructed his/her bank not to pay the check; check not bankable.

Stop Payment Coverage
Additional coverage a merchant may purchase that obligates EZCheck to purchase stop payment checks in addition to checks returned for all other reasons.

Transaction
Refers to the complete cycle of accepting/rejecting an item, from the time it is sent from the remote site to the time EZCheck returns a response.

Uncollected Funds
Reason for returned check: the amount of a check is greater than the amount in the debtor's checking account.

Verification Product
An EZCheck product offering which provides an authorization without a guarantee.

Violation
Merchant contract violation such as: split sale, or check not received for goods or services.