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 Check By Phone E-Check Payment Gateway Solutions |
High Risk ACH Payment Processing
Automated Clearinghouse (ACH) OverviewThe ACH network, through which electronic payments are distributed and settled, has existed since the early 1970s.
As the industry develops new and innovative uses for ACH, and, as both ACH activity and the number of participants in the network (including third parties) grows, risks to national banks engaged in ACH activity can be complex and not readily apparent. National banks, therefore, must have the expertise to identify ACH risks and be able to implement risk management processes to appropriately manage ACH risk.
NACHA OPERATING RULES CHANGES
Three amendments to NACHA Operating Rules became effective in 2004. The most important changes introduced by the amendments are described below.
Accounts Receivable Conversion (ARC) Opt-out Amendment
(Effective June 11, 2004)
This amendment requires originators of ARC debits to allow consumers to opt out of ARC check conversion and to establish reasonable procedures under which consumers may notify originators that their checks are not to be converted to ARC debits. While not mandated by this NACHA rule amendment, the OCC also encourages national banks that are originators of ARC debits to:
- Provide consumers with a clear and conspicuous notice of their right to opt-out;
- Establish procedures to apply any consumer opt-out requests to all checks involving the consumer's checking account; and,
- Provide consumers with a telephone number they may call for any inquiries related to the ARC process.
The new Check 21 law, which became effective on October 28, 2004, changes the way that merchants accept checks from customers.
The Check Clearing for the 21st Century Act (Check 21 Act) is a federal law that is designed to enable banks to handle more checks electronically, which should make check processing faster and more efficient.
Traditionally, banks often physically move original paper checks from the bank where the checks are deposited to the bank that pays them. This transportation can be inefficient and costly.
Check 21 affects check writers and depositors in the following ways:
- If you are used to getting your canceled checks back to you when you get your account statement, you may now be getting a "substitute" check. A substitute check is a high-quality paper reproduction of both sides of the original check. A substitute check is a legal equivalent of the original check.
- It is more important than ever to avoid bouncing checks. A check deposited in a bank generally travels by airplane and truck until it reaches the paying bank, typically about one or two days later. As a result of Check 21, more checks will be processed electronically…and faster!
- Check 21 does not require your bank to return your original check to you. However, Check 21ensures that you have the same legal protections when you receive a substitute check from your bank as you do when you receive an original check.
- If you notice a problem with a substitute check, you should contact your bank as soon as possible.Check 21 provides a special process that allows you to claim a refund when you receive a substitute check from a bank and you think there is an error because of the substitute check. In general, you should contact your bank no later than 40 days from the date your bank provided the substitute check or from the date of the statement that shows the problem.
Check processing for high risk merchants, tmf merchants and bad credit - we can help.
ACH processing for high risk and high volume merchants.
Accept payments from anyone with a valid US Checking account.
High Volume Check processing.
Merchants worldwide can use eCheck to accept electronic check payments.
High Volume Ach Processing | You can accept electronic checks. | Shipping method, return policy, refund policy and other factors are all considered in a quote.
High volume business can accept electronic checks easily and securely. International Businesses accepted.
Ecommerce / MOTO / Rebilling / Membership / Pharmacy / Call Centers / infomercials / Travel / Timeshare sales and rental / VOIP / Medical Discount Cards / and more.
