The Five Things You Must Know About Accepting A Check By Phone

Accepting checks by phone, fax, or online is a great way increase revenues, reduce collection headaches, and to offer customers.

There are many essential items, but there are new payment options.

This is something you must know.

Let’s start with the amazing benefits.

1) Customers don’t need to wait to pay.

2) It is a lot cheaper than a credit-card. Credit card transactions always include a discount rate. It is usually around 2.3%. This means that you will pay a processing fee of that amount.

3) NSF transactions or rejected transactions are usually discovered faster than a paper check, typically within 2 to 3 days.

4) You can phone a late payer to tell them “no, you don’t need to send out checks we will take your check immediately.”

5) It is safe for both the customer and the business.

6) You can offer an alternative to credit cards payments for people who have reached their limit or are not eligible for credit cards (there are many people).

Here are some things you must know

1) Funds transfers are not guaranteed. 1) The funds transfer is not guaranteed. A check by phone (an ACH transaction-more info at http://www.ach-payments.com) is a request that funds be transferred. The money may be in the customer’s account or not. To ease the burden of collecting NSF funds, it can be automated.

2) According to NACHA (www.nacha.org), electronic transactions must be accompanied with notification to the customer. This can be either a recording or a written record of the transaction that can easily be accessed. You can send a confirmation email or a postcard to confirm the transaction.

(3) The customer has a 60-day revocation window to contest the electronic debit to his account. They can “charge back” any debits (hence, the NACHA rule that they must provide proof of their consent).

4) A business check may not be accepted by telephone. NACHA is currently reviewing this rule. NACHA is currently reviewing this rule. An authorized person at the business can give written permission to debit their account using the ACH network. You can also accept the check over the phone.

5) No recurring debits are allowed to customer’s account (NACHA again), based on voice obtained permission. Although a web-based permission would be acceptable, written permission must be obtained from the customer to authorize recurring debits.

Your business should definitely consider check-by-phone payment functionality. However, these five things will make your life easier.