Alternatives Federal Credit Union has partnered with Newtek, The Small Business Authority to bring Electronic Check Services to your business. These services will help you increase sales and manage risk by providing you with the ability to accommodate check writing customers. The following is a list of check services available at the point of sale. Newtek provides a wide variety of state-of-the-art equipment to accommodate these services.
Check Conversion "deposits" consumers’ paper checks by converting them into ACH debits from the consumers’ checking accounts. The result of the conversion is comparable to a debit card transaction. Checks can be converted through a scanner at Point-of-Purchase (a "POP" conversion) in the back office (a "BOC") through the telephone or through a website.
Check Verification is a convenient and inexpensive option for you to reduce your exposure to returned checks by identifying consumers who have unusual levels of recent check writing activity and who are listed in a nationwide database of “bad check writers.” Quick and descriptive responses will appear right on your point-of-sale terminal noting any problems or warnings.
Check Conversion with Guarantee enables you to accept checks that you might otherwise decline. You simply scan a customer’s check through a POP reader or enter the customer’s checking account information into your credit card terminal. Within seconds, the check writer is compared with a database of millions of records and an approval decision is issued. If an approved check does not clear the bank, you are quickly reimbursed the full amount of the check. You decide which checks require a guarantee, for an out-of-state check, for example, but not for a repeat customer’s check.
Other Check Services: Electronic Check Recovery (RCK) and Recurring Debit. With RCK, returned checks are resubmitted two additional times for collection. Merchants receive 100% face value of the check if successfully collected through RCK. With Recurring Debit, your customers can make regular (e.g., monthly) payments automatically from their checking account. One-time debits are also available.