What is Electronic Check Conversion?
Electronic Check Conversion gives the Lessor the ability to deposit paper checks directly into their bank account from the comfort of their own PC. Once a client signs up for the Electronic Check Conversion service, they are given the option to either buy or lease the hardware to scan the checks into www.paylease.com . Checks are run directly into the scanner and uploaded into www.paylease.com as a line item as it captures the routing and account numbers for the Lessee’s respective bank. The client then enters in payment amounts. Once all the checks have been scanned into the system, the client clicks send and the funds are sent through the Federal Reserve as an ACH payment and deposited into their account 72 hours later. The payment gateway on www.paylease.com also can save images of the checks for record keeping purposes. top ………………………………………………….
Electronic check conversion is a process in which your check is used as a source of information — for the check number, your account number, and the number that identifies your financial institution. The information is then used to make a one-time electronic payment from your account — electronic fund transfer. The check itself is not the method of payment.
The check is imaged at the point of sale with a special imaging check reader, after approval the check may be given back to the writer who signs an authorization to allow the check and a NSF fee to be electronically re-presented should the check be returned. Contrary to what many believe the check reader is not capturing the sale like a credit or debit card transaction, it is checking a database of known bad check writers and closed account information by bank account numbers from the MICR printing on the check. The Check Company presents the checks to the bank electronically the next business day and funds are deposited within 72 business hours. If the check is dishonored the Check Company can represent the check two more times and may instigate collection proceedings.
