Merchant Accounts

Merchant Accounts


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Check Processing

Written by Patricia Tunstall
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Check Processing for Merchants

Check processing has always been a hassle for business owners and customers alike for several important reasons. Patrons presumably make sure they have sufficient funds in their account to cover the amount of the check. While this may seem obvious, some patrons don't always have enough in the bank to cover the purchase price of an item they consider it necessary to buy.

Known as writing a "rubber" check, the practice of writing a check and then hoping to cover the face value later has caused merchants to be reluctant to accept checks. If patrons can't find the necessary funds, the check "bounces." Business owners are all too aware of the staggering losses to their stores that once were frequent as a result of such problems.

ACH to the Rescue

Automated Clearinghouse (ACH) has been around since the early 1970s, but even yet, many businesses do not participate in this check processing system. Considering the many time-saving benefits, it is hard to see why a business would not take part in an electronic system that provides total assurance to a merchant. Customers still have the convenience of using their own checking and savings account, yet the merchant has several convenient tools to ensure prompt ACH payment processing.

In addition to check guarantee, check conversion to electronic transactions, and check verification, merchants are freed from the time-consuming necessity to process checks by hand and make deposits. By using the electronic ACH check processing services, merchants eliminate the fear of accepting payment by check.

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