Small business owners are often apprehensive about accepting credit cards. They believe that the payment processing fees and equipment will be too expensive. However, these are not the only concerns. There are many different companies that offer these services. Banks, independent organizations and the credit card companies themselves all have options to choose from. When selecting a company, consider what type of customer service they offer? Are they only available Monday through Friday during normal business hours or are they staffed weekends and evenings as well? Some businesses prefer to work with the bank where their business accounts are held.

One of the advantages to having their payment processing needs serviced locally is that they have already built a relationship with the financial institution. They understand how the business services work and are comfortable asking questions. However, there are also benefits to working with an independent sales firm. In many cases they specialize in providing these types of small business services. They often are flexible in the types of organizations they can work with as well. Most vendors offer several services bundled together and the rates that are discounted if purchased as a package. When comparing potential vendors, there are a few things to consider.

How reliable is their network? If it goes down unexpectedly, what is their backup structure? Are there support options available 24/7? Ask about their range of payment processing products. Do they offer full-featured solutions that allow you to take payment over the phone as well as online and manually? Can they work with your existing point of sale system or do you need to purchase equipment from them? Can they accept electronic gift cards and checks? Although price is not the only consideration, rates may fluctuate greatly from one vendor to the next. Some are very competitive, while others are not.

There are many fees associated with accepting credit cards, from the standardized monthly fees, to those that are charged as a percentage of every sale. There are also separate fees based on how payment was collected. Scanned cards may be charged with a different rate than those that have their numbers and other information manually entered.  Accounts often must meet a minimum amount in sales or an additional service feed may be charged. If you are a small business about to embark on the search for a payment processing company, take some time to research your options to find the vendor that will best suit your needs.

We are in the midst of what has been called the electronic age. The mainstream acceptance of the Internet has enabled information to flow freely and quickly. From email and chat being used to keep in touch with friends and family, to paying bills online rather than sending payment via the Post Office, everything seems to move faster. When the Check Clearing for the 21st Century, or Check 21 for short, was enacted in 2004, the speed with which check processing occurred increased. It was viewed as an easier and less expensive way for the financial industry to process check transactions.

In the past, a check would be made out, signed and physically sent to a merchant for payment. The merchant would then deposit it into their bank account. From there, the check could be transferred several more times before the transaction was considered complete. This would take days, sometimes weeks. Under Check 21, the check never needs to move once it is received by the merchant’s bank. Instead of sending the check with the accompanying receipt to its next location, the bank scans it. Once it is an electronic image, it is transmitted to the proper location.

The overall result of Check 21 to the banking industry is a substantial savings. There are no transportation fees needed to move thousands of checks from one location to another. Once the check is scanned, the data is uploaded in an approved format. Manual entry is not required and it takes only seconds to transmit the data to the proper network. This also decreases the amount of personnel required to maintain the volume of checks received. Research time for adjustments is unnecessary, collection expenses are reduced and the processing cycle is shortened from three weeks to a few days.

By having access to the check information more quickly, customer services are enhanced. Consumer questions about their account balance and recent transactions can be answered with surety. Although it enables the banking industry to realize savings in many areas, Check 21 does not mandated reduced fees charged to the consumer. Banks have the option of processing checks electronically, but they will not refuse paper checks when presented. Increased imaging clarity, widespread use of the Internet and changes in banking regulations enabled financial institutions to keep up with the rest of their business needs. Cash flows more steadily and there are fewer defaults on payments due to late receipt.

For more information please contact us at 800-720-3323 or at www.nationalprocessing.com

Electronic funds transfer is defined as any transfer of funds that occurs in a paperless manner. This includes that transactions that take place at a point of sale system in a retail store, as well as transactions that take place online, via telephone, or by fax. These payments utilize EFT processing to ensure the money is sent to the correct account quickly. This term is often used synonymously with ACH processing.  The ACH or Automated Clearing House network operates on a batch-oriented funds transfer system. It uses the Federal Reserve Bank’s network to receive and transmit files through its various associations so that payments made from one account are deposited into the intended account.

The file contains information pertinent to the transaction so that there is proper documentation of the process and confirmation that it was received. There are many ways that EFT processing can be used to improve cash flow and reduce expenses. Using the paperless method, the risk for processing checks is dramatically reduced. If the funds are verified in the account, the entire transaction can be completed with only a small charge. This is several days faster than if a paper check was used. If there are insufficient funds, the transaction is not attempted and the check is returned.

This saves money in bounced check fees as well as the personnel required to settle the account. The advantage for EFT processing for checks is that they are posted before paper checks. This means the electronic version will receive any funds in the account first, reducing the number of returned payments. Electronic payments can be submitted automatically up to three times, increasing the chance of collection in a shorter period of time than if attempted by other methods. Having payment entries automated cuts down on data entry errors, decreases the total transaction time and saves money on the personnel required for the task.

Payroll costs are reduced and the recovery of funds is achieved in a significantly short period of time. By taking advantage of EFT processing, businesses are able to collect funds faster and spend less to do so. However, it is not only on the payment side of the transaction that funds are saved. Administration expenses are drastically reduced as invoices and payment notices can be sent automatically at pre-determined timeframes. There are no invoices to be printed, envelopes to be stuffed or trips to the post office required. This helps businesses control their expenses and operate more efficiently.

Check 21 is the short name for the Check Clearing for the 21st Century Act. This law was enacted in October 2003, going into effect one year later.  It is the law that allows recipients of checks to create a digital format. This removes the need for any further handling of the original document. With the mainstream acceptance of online shopping and automatic payment processing, it was becoming more expensive to handle checks and process them efficiently. The Act was designed to improve the effectiveness of check payment processing.  Technological advancements have increased the resolution and clarity of scanned documents.

Quality image scanners are inexpensive and easy to operate. As a result, many businesses and consumers alike began to bypass the postal service and other transportation methods for quick receipt of important documents. Check 21 enables vendors to receive funds faster, improves customer service and allows for more efficient collection of returned check fees. Transportation costs are dramatically reduced as checks can now be scanned and electronically processed. As many duties are now automated, the personnel requirements have been reduced which saves on payroll. The space needed for storage of the checks can now be allocated to more useful purposes.

Check 21 affords many benefits to financial institutions and the commercial customer. For the industry, first and foremost, it eliminates the monetary risk associated with the movement and storage of billions of checks each year. The process of digitizing paper checks and allowing them to be legally used has streamlined the collection and return processing procedures by fully utilizing existing technology. By encouraging image exchange, the costs for accepting checks are reduced for all parties involved. For financial institutions, one of the primary benefits is in the reduced time for settlements.

Check 21 lowers the clearing fees by automating many processes that used to be completed by hand. It also is responsible for reducing costs associated with checks that need to be resubmitted. The electronic process reduces the check float, which allows funds to be moved to the vendor faster. This also helps the financial institution find instances of fraud quickly and deal with it effectively. For commercial customers, they are able to receive payments and have access to funds faster. Deposits are convenient and can be made daily. This reduces expenses associated with courier fees.  As a result, deposit cut off times have been extended and banking has been made easier.

ACH stands for Automatic Clearing House. It is a secure, private, nationwide system created specifically for electronic funds transfer (EFT). This system provides for the exchange of information between banks and other financial institutions. It uses the Federal Reserve Banking System to allow for the disbursement of funds used in credit and debit transactions. An example of the way the network functions is when your personal banking account receives and registers a paycheck that has been accepted via direct deposit.  Using this type of electronic system is faster than processing paper checks and inexpensive in comparison.

With the increase in online shopping and invoicing, business to business and business to consumer ACH transactions are becoming more common. The amount of funds moving through this network continues to increase as a result. With each transaction, there is a record created containing specific information. It includes the routing and account number that the payment is originating from, transaction amount, and the date of the transaction. If there is an expanded record format in the software being used, an invoice number may also be included. To the consumer, this transaction is seamless. However, there are many steps involved in the process to get the funds from one account to another.

A company, known as the receiver, authorizes a business or an individual, known as the originator, to begin a transaction to their account. This account can be held at almost any financial institution. The originator prepares the transaction information for all participating companies and sends it to the Originating Depository Financial Institution (ODFI). This is the organization that actually places the ACH files into the network for processing.  The central clearinghouse for the network processes all of the transaction files and distributes them to the appropriate Receiving Depository Financial Institutions (RDFI’s).  At this point, the funds are deposited into the intended accounts.

The date and dollar amount of the transactions are posted to the account statement. There are many regional ACH associations that are part of this network. The National Automated Clearing House Association creates and enforces the operating rules and guidelines by which business is conducted throughout the network. Though this process is faster than processing paper checks by hand, it does not happen instantly. From the moment a payment is authorized, it may take three to four business days for it to reach its intended recipient. Using this method for payment is secure and, unlike regular first class mail and can be tracked through every stage of processing.

For more information please contact us at www.nationalprocessing.com or call 800-403-8182.

The ACH network connects financial institutions nationwide. Transactions are regulated by NACHA and the Federal Reserve Banking System is its mechanism for the transportation of funds. It is one of the most secure ways to move money from one account to another. As the costs for personnel rise, many businesses are beginning to look for better ways to process payments from its customers and to make paying their own invoices easier. ACH processing is the answer for countless of these businesses. Using this network has several advantages.     The first of which is that it provides for faster access of funds.

When paper checks are written, they must be sent to the billing party and processed. Processing includes submitting the check for payment. This can take seven to ten business days. When using ACH processing, transactions usually take place in one to two business days. If the transportation time of the check being moved through the US Postal Service is taken into consideration, this is speeding up the completion time by as much as two to three weeks. In addition to faster access to the funds, using electronic transfers through this network is much more convenient for all parties involved.

The customer does not need to take the time to write out a check, address the envelope, add the stamp and drop it in the mail. The business owner appreciates that the funds are automatically deposited. There are no endorsements needed or trips to the bank required. ACH processing is much more cost effective than the traditional method of processing for a couple of reasons. First is that the entire process is almost completely automated. This cuts down on the personnel required to handle the processing of transactions. It also prevents costs resulting from non-sufficient funds.

Each time a check is submitted for payment from an account that does not have the funds to cover it, there is a charge. This can become an expensive prospect for the business and their customers. When using ACH processing, the funds can be confirmed before payment is actually submitted. Membership fees, mortgage and credit card payments are paid on a monthly basis. The ACH network allows for recurring payments to be set up for bills to be paid automatically. This reduces the instances of missed or late payments, which often results in late fees. All of these reasons contribute to companies conducting business in a more effective and efficient way.

It seems that everyone has a web site of their own. Home-based businesses have sites that are informative and professional. Many popular brick and mortar businesses also have an online presence. Everyone encourages you to make a purchase at their online store from the convenience of your home with their online payment processing system. In many instances they offer web-only discounts, free shipping or a gift with every purchase to entice potential customers. However, you may have some concerns about entering your credit card information.

How can you tell if they are legitimate? Is it safe to make purchases? Online payment processing is the method used for processing credit cards or electronic checks for e-commerce store purchases. Most web sites offer shopping carts that provide merchants many payment gateway choices. A payment gateway is the part of the transaction that has access to the information attached to a debit or credit card account. This information includes the account holder’s name, billing address, CV, and expiration date. It works in much the same way a point of sale system works at your favorite retail location. Payment gateways offer a variety of services to online merchants.

Though they may vary from one vendor to another, they all provide authentication for credit and debit card transactions. They are able to send and receive data over a secure connection that provides privacy for the web customers. This ensures the page used for online payment processing, which is where personal information is entered, is safe from the prying “eyes” of computer hackers. When the data is sent to the online merchant, the software creates a file in a format that can be accepted by the payment gateway. Once all data is received, the transaction commences and the request for authorization is made.

The customer’s credit card company confirms the information, validates the account and authorizes or declines the charge via their online payment processing system. If an authorization is received, the funds are removed from the customer’s account and deposited into the store’s Internet Merchant Account. Usually a confirmation or order number is created for the customer. If the charge is denied, a specific code is returned that indicates the issue. When making purchases online, look for the security seal. If it is not mentioned on the home page, check the frequently asked questions. This indicates that steps have been taken to protect the identity and banking information of customers.

We have all heard the phrase “The check is in the mail”. In most cases this is a sarcastic way of saying that something is probably not ever going to happen. In the past, people used checks as a reliable and common form of payment when they did not have enough cash on them to make a purchase or pay for a service that had been rendered. The consumer would write out a check for the amount they wanted to pay, sign it and hand it to the purveyor of the good or service that they were purchasing. The recipient would then take the check and endorse it, then deposit it at their financial institution. Today, many businesses prefer ACH check processing.

Standard paper checks are not as reliable as they once were for a variety of reasons. Checks that are mailed to the payee have the potential to get lost or misrouted. A check made out to cash, in the wrong hands can be deposited, even though it wasn’t intended for the person depositing it. In today’s uncertain economy a check is also no longer an ironclad guarantee that you will receive payment. A person is capable of writing a check for an amount greater than the funds which they actually have available. The recipient runs the risk of not only not getting paid, but incurring fees for the returned check when they accept a paper check. ACH check processing helps avoid this issue.

An ACH check is an immediate withdrawal of funds, at the time that the check is issued. No paper check has to be written out, though many financial institutions will provide a paper version back to the account holder to enable them to reconcile their statement. ACH check processing provides a safe means for businesses to accept checks and a secure way for account holders to issue checks, with no risk of the check not making it to the intended recipient.

If you have a business and are looking for ways to enhance the payment experience for your customers, then you should consider offering ACH check processing. Fast, simple and reliable, it provides a great way to ensure that you get paid on time, the first time and every time. It also protects your customers by preventing them from ever writing a check that may bounce on them or using a credit card with interest and finance charges attached.

Please contact us for more questions or comments at 800-403-8182 or at www.nationalprocessing.com

If you as a business owner decide that you would like to accept ACH payments, then it is important that you become aware of and strictly adhere to the ACH regulations that govern all transactions. Knowing these rules and regulations can help ensure that you maintain your right to accept electronic forms of payment for a long, long time. The penalties for not following the regulations can be very steep including fees and loss of the right to process electronic transactions. Luckily, the regulations are not terribly complicated or difficult to follow, so adhering to them should be relatively easy.

Most ACH regulations are directly related to Regulation E, which is the electronic funds transfer act. This regulation states that all ACH transactions must follow certain guidelines. Among those guidelines are that the merchant processing the transaction notifies the customer that they will be initiating an electronic payment. Another facet of this regulation is that the business initiating the transaction must make the consumer aware of any fee that will be charged for items which are returned as unpaid due to insufficient funds. A receipt also needs to be furnished to the consumer for any electronic transaction that is processed through the ACH system.

There are many different types of ACH payments, and accordingly a variety of regulations that govern those types of payments. Among the most important of all ACH regulations is that any transaction that you process must have the express permission of the card or bank account holder. Running a transaction without their permission can be grounds for the card or bank account holder to issue a chargeback, wherein the funds will be returned to them and you will be charged a fine. In addition, repeated abuse of this regulation will cause you to lose the right to accept electronic forms of payment.

There is no doubt that the ability to accept electronic payments has the potential to help you grow your business. Consumers like to have different payment options available to them. If you have made the decision that you would like to grow your business by accepting ACH payments than it is vital that you familiarize yourself with the ACH regulations that go along with accepting electronic payments. Knowing the rules, responsibilities, rights and regulations associated with electronic payment acceptance beforehand can save you a lot of money, time and hassle in the long run.

If you want to get ahead and stay ahead in today’s economy, than it is absolutely essential that you offer ACH processing online as a method of payment for your customers. As the internet has taken such a strong foothold in the retail model of our world, more and more people are specifically seeking out companies that allow them to make electronic payments. Whether for basic shopping, utility bills or even tuition payments, people enjoy the convenience that online ACH payments afford them and will often opt to do business with companies that offer ACH as a payment option over those that do not.

ACH stands for automatic clearing house and is a method of moving fund directly, from one bank to another, via the Federal Reserve and Electronic Network. By signing up to make an ACH payment, a consumer is authorizing a financial institution to make a withdrawal from their own account on behalf of the business that the consumer is paying. By using the ACH to make a payment, consumers can avoid having to write a check and mail it or using a credit card. The money is wired directly from their account to the payee’s account, and there is no risk of their information being misused as can happen with credit cards. Many businesses now offer ACH processing online.

Online ACH processing provides consumers with the ability to initiate an ACH transaction over the internet. Many consumers utilize this service to make recurring payments. By setting up a monthly or weekly ACH transfer, they can avoid ever incurring late fees or having checks get lost or stolen in the mail. Businesses that offer ACH processing online often find that they have a much better on-time payment ratio than those businesses that rely solely upon receiving payment by check or other methods. The extreme convenience of being able to pay for a good or service via online ACH payment helps ensure that those payments actually happen.

If you are looking for a good, solid way to help your business succeed, you should definitely look into providing ACH processing online to your customers. The more ways that your customers have to pay you, the more likely they are to pay. Accepting ACH payments allows you to avoid ever having to hear that “the check is in the mail” again. Quick, easy and simple to set up, ACH payments are a great option for virtually any business, anywhere. Please call us at 877-458-3323 for any questions, or visit us at www.nationalprocessing.com.