When people started being able to pay by check instead of carrying cash around, it was a revolution for the customer. Instead of having to withdraw large amounts of cash and carry it on their person in order to make a big purchase, they could simply write a check and the funds would be deducted from their bank account. But, now, thanks to Check 21 processors, there’s a revolution in store from the business side of things. Using Check 21 processors is a revolution in the way that businesses accept and process checks. Thanks to Check 21 processors, accepting checks and processing them for payment will never be the same again.
Check 21 is the more common name for the Check Clearing for the 21st Century Act, a congressional law designed to make it possible for businesses to process checks electronically. Check 21 processors provide businesses with the tools and software that they need in order to take advantage of the Check 21 Act. Now, instead of having to drag paper checks to the bank for processing, businesses can simply make a high-quality digital image of the original check and submit the substitute check (that is, the digital copy) to the bank for payment.
Check 21 processors are composed of two major components. The first component is the software. Most Check 21 processors utilize secure, web-based software to connect the business to the financial institutions involved: the business's and the customer’s. Using this software allows the business to present the substitute check to the customer’s bank and then have the funds deposited directly into the business’ bank account. And it doesn’t even require anyone to have to physically take a check to the bank. Thanks to Check 21 processors it’s never been easier to collect on funds that are presented by check.
The second part of Check 21 processors is the check imager. The check imager is a basic scanner that allows you to scan checks and produce digital images of them. Basically, the check images make the substitute checks which you can submit electronically to the customer’s bank via the web-based software that is the first component of Check 21 processors. Using Check 21 processors is easy, and, once you start using it, you’ll wonder how you ever got by depositing paper checks. And since Check 21 processors offers you a measure of protection from returned check fees, they’ll help you save money, too.
Posted in Check 21 on Sep 27, 2010