Payment Services FAQs

Check By Phone & Fax FAQ

Q: How do I know a sale has occurred by using the Internet?
A: Check the ACH Software Application at your home/business computer with the drop-down menu from Reports Button Reports/ Funding/ Settlement Detail or use Virtual Terminal.

Q: How is a rejected transaction handled?
A: Several times during the day, settlement details are posted to your account and are viewable on your home/business computer. The Settlement Detail lists all rejected items. An example of a rejected transaction is a NSF (Non-Sufficient Funds) check. The report contains all the information necessary to identify the returns so that you can decide whether to "run" the transaction again or contact the Consumer directly to follow-up with the sale.

Q: What is the maximum dollar amount allowed per sale?
A: Limits are established independently for each merchant.

Q: Can consumers "charge back" purchases?
A: Cleared Funds: Within 60 days after purchase, our bank will automatically credit consumer's account if transaction is disputed or repudiated

Q: How soon can I begin accepting Online Checks?
A: You can start accepting online checks the next working day following approval of your completed application and Bank Agreement. The typical approval time is 4 to 8 days.

Q: Will my Customer be returned to my site after the purchase?
A: YES! You simply supply us with the exact location page (www.mysite.com/mystore/store.htm) or you can customize your own secure purchasing page. It's totally up to you.

Q: How are funds deposited into my account?
A: All funds into your existing bank account via the ACH (Automated Clearing House) Banking System.

Q: When are funds deposited into my account?
A: Funds are deposited into your checking account within 48-72 hours of the online transaction. This excludes weekends and holidays. We utilize the NACHA electronic network that transfers and clears funds between banking institutions on behalf of online merchants and their customers. Each transaction takes approximately forty eight hours to clear. We strongly suggest that merchants wait five days from the initial transaction date before shipping any goods to insure that the payment has cleared.

Q: How will I be billed for the Online Check service?
A: Your checking account is debited on the first day of each month. An invoice is mailed with an electronic debit within 8-10 days.

Q: Will Online Checks work with my current Shopping Cart?
A: Yes. You can use our Integration Guide and software even if you do not have a shopping art on your site. If you choose, we can provide you with a Payments Gateway.

Q: Can I take orders from Canadian customers?
A: YES (as long as the consumer uses a bank that is part of the United States ACH system).

Q: Can I accept orders from outside the United States?
A: YES for credit cards and YES for Checks (as long as the consumer uses a bank that is part of the United States ACH system).

Q: What is a Rolling Reserve?
A: A 'rolling reserve' is an amount held to guarantee transactions. The amount varies for each merchant, dollar transaction and volume. The amount is determined by our Risk Management Department.

Q: Can I "private label" the software?
A: This option is available to you. Contact your representative for the details.

Q: Is it legal?
A: YES. Web entries are transactions subject to the requirements of the NACHA Operating Rules, the Electronic Fund Transfer Act and Regulation E, as promulgated by the Federal Reserve Board. Web authorized entries are defined as a debit entry to a Consumer Account initiated by an Online Merchant pursuant to an authorization that is obtained from the Consumer via the Internet.

Q: Is there a minimum transaction volume or a minimum amount of transactions required per month?
A: There is NO minimum transaction volume. Also, NO minimum numbers of transactions are required per month.

Q: Does this work with every type of electronic Point-of-Sale Terminal?
A: NO, system is web based www.speedchex.com/demo

Check Conversion FAQs

Q: How do I know if a sale has occurred via the Internet?
A: Check the ACH Software Application at your computer using the drop-down menu from Reports Button Reports/ Funding/ Settlement Detail. Alternatively, use the Virtual Terminal.

Q: How Are rejected transactions handled?
A: Several times per day, settlement details are posted to your account. These are viewable on your home or business computer. The Settlement Detail lists all rejected items. An example of a rejected transaction is a NSF (Non-Sufficient Funds) check. The report contains all the information necessary to identify the returns. You can then decide whether to "run" the transaction again or contact the Consumer direct and follow-up with the sale.

Q: What is the maximum dollar amount allowable for each sale?
A: Limits are established independently for each merchant.

Q: Can consumers 'charge back' their purchases?
A: Cleared Funds: Within sixty (60) days after purchase our bank will automatically credit consumer's account if a transaction is repudiated or in dispute.

Q: Will my bank charge me a fee for Online Check deposits?
A: No. Banks should not charge for this. If yours does, switch your account to another bank.

Q: How quickly can I begin to accept Checks Online ?
A: You can begin to accept Online Checks the day after we approve your completed application and Bank Agreement. Typical approval time is 4 to 8 days.

Q: Will my Customer be returned to my site after the completed purchase?
A: YES! You simply supply us with the exact location page (www.mysite.com/mystore/store.htm) or you can customize your own secure purchasing page. It's totally up to you.

Q: How are funds deposited into my account?
A: All funds are deposited into your existing bank account through the ACH Banking System.

Q: When are funds deposited into my account?
A: Funds will be deposited into your checking account within 48-72 hours of the online transaction; not including weekends and holidays. We utilize the NACHA electronic network that transfers and clears funds between banking institutions on behalf of online merchants and their customers. Each transaction takes approximately 48 hours to clear. We strongly suggest that merchants should wait five days from the initial transaction date before shipping any goods. This will insure that the payment has cleared.

Q: How will I be billed for the Online Check service?
A: Your checking account is debited the 1st of each month. An invoice is mailed with an electronic debit within 8-10 days.

Q: Will Online Checks work with my current Shopping Cart?
A: Yes. You can use our Integration Guide and software even if you do not have a shopping cart on your site. If you choose, we can provide you with a Payments Gateway.

Q: Can I take orders from Canadian customers?
A: YES for credit cards and YES for Checks, providing the consumer uses a bank that is part of the United States ACH system.

Q: Can I accept orders from outside the United States?
A: YES for credit cards and YES for Checks (as long as the consumer uses a bank that is part of the United States ACH system).

Q: What is a Rolling Reserve?
A: This is an amount held to guarantee transactions. The amount varies for each merchant, dollar transaction and volume. Our Risk Management Team determines the amount.

Q: Can I "private label" the software?
A: Yes, you may. Contact your representative for details.

SpeedCHEX® Verification FAQs

Q: How much does the service cost?
A: The SpeedCHEX® Verification service is charged on a per transaction basis. There are no monthly minimums or lengthy contracts to sign. You may cancel any time. The per transaction price varies based on the number of transactions that are run each month.

Q: Does this service work with all checking accounts?
A: No, the service currently works with most US bank accounts, which is by far the most comprehensive coverage that is available today. The majority of the accounts that the service currently works with are the large nationally recognizable banks. The list of accounts and participating banks growing daily and will soon include all but the smallest of institutions.

Q: Does the customer have to enter a PIN number?
A: No. The service works completely off the information that is read at the bottom of your customer's check.

Q: Does the check writer have to be present, or can the service work for mail order or Internet-based transactions?
A: The service is available for all methods including retail, mail, telephone, fax, Internet, etc.

Q: How long does it take to get a response?
A: The transaction should take about the same time as a credit card or other verification service. The norm is well under six seconds averaging around two to three. Time taken varies based upon the speed of your internet connection.

Internet Checks FAQs

Q: How much does the service cost?
A: The Speedchex Verification service is charged on a per transaction basis with no monthly minimums or lengthy contracts to sign (cancel any time). The per transaction price varies based on the number of transactions your company runs each month.

Q: Does this service work with all checking accounts?
A: No, the service currently works with over 150 million bank accounts in the US, which is by far the most comprehensive coverage that is available today. The majority of the accounts that the service currently works with are the large nationally recognizable banks. The list of accounts and participating banks growing daily and will soon include all but the smallest of institutions.

Q: What kind of information can be obtained from a Speedchex Verification query?
A: Not only can you confirm that account exists and has positive funds, but you can also determine if the check being written has a stop payment on it, if the account has been closed, if the account has been frozen or attached, or if the bank has flagged the funds in the account as uncollected.

Q: How long does it take to get a response?
A: The transaction should take about the same time as a credit card or other verification service. The norm is well under six seconds averaging around two to three. The total time varies based on whether you are using a dial-up connection or high-speed connection.

Check-21 FAQs

Q: When did the Check 21 Act take effect?
A: The law was effective beginning October 28, 2004.

Q: Does Check 21 preempt existing law?
A: Check 21 supersedes any state or federal law that is inconsistent with this new law, including provisions of the Uniform Commercial Code.

Q: What, exactly, is check truncation?
A: Check truncation refers to any of several techniques that stop the movement of paper checks through the clearing and settlement systems.

Under Check 21, check truncation occurs when a bank or business payee captures an electronic image of a paper check and the subsequent forward and return collection processes occur through the exchange of electronic check files.

Q: What is a substitute check?
A: A substitute check is a legally sanctioned document about the size of a "business" check that can be provided to a paying bank or consumer in lieu of an original check that has been truncated along the collection stream. A substitute check is considered the legal equivalent of its original check for all purposes and reasons, including proof of payment.

A substitute check (which can be generated by a bank or its check services provider) must contain images of the front and back of the original check (complete with necessary signatures and endorsements), a statement identifying it as a substitute check and legal copy of the original and MICR encoding (which allows for the document to be handled using traditional check processing equipment).

Q: What types of checks will be eligible for truncation as a result of Check 21?
A: Any and all types of checks can be truncated and re-converted, as needed, into substitute checks.

Q: What is an IRD?
A: IRD is an acronym for Image Replacement Document. IRD is sometimes used interchangeably with substitute check.

Q: What happens to the originals of truncated checks?
A: In many cases, original checks are destroyed once the electronic (digitized) versions are created. However, some may be stored in a secure location at the discretion of the bank/merchant who digitized the checks, to be destroyed at a later date once the payments have cleared and have been posted to check writers' accounts.

Q: What does truncation mean for bank deposit cut-offs?
A: Merchants are often constrained by narrow windows for depositing paper checks into the collection stream. Substitute checks and check image exchange push open those windows.

With modest investments on their part, business customers will be able to capture check images upon acceptance, transmitting those electronic check files to their banks 24/7. Good riddance to late-night deposit drops.

Q: How will Check 21 and truncation affect check fraud?
A: Check fraud is a serious and growing problem for merchants. Annual losses to check fraud are believed to exceed $10 billion in the retailing community. Having access to check images as soon as the items enter the collection stream mean banks (and merchant customers) can identify potential frauds early and take immediate steps to prevent losses.

ACH FAQ