Quote:
Originally posted by Mike AI@Jul 1 2003, 05:40 PM
Wig, we could probably use a good tutorial on check processing. How it can be more effective then credit cards and such.
Maybe come up with a list of common misconceptions about checks, some FAQs, etc....
I know I would like to know more, and would like to stop getting my balls squeezed by the CC companies... but I know checks have some issues as well.
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Mike,
ACH is limited by the return window, which is usually 2 business days. We can originate late in the evening, same day and get returns in at each Fed window. These returns are not charge-backs, but rather what we call administrative returns such as NSF, invalid account, closed account, etc...
The ACH system is designed that all transactions are considered good until they are returned. In other words, there is no authorization or positive code returned.
So, that leaves us where Mof is heading.... how do you verify in a real-time manner or otherwise reduce returns. We use StarCheck on all our transactions (free for our managed adult clients) and for about 30% of the DDA accounts it works well. There are also MOD calculations and other ABA to account number nomenclature / structure that can be applied.
The banking system is not standardized and there are 1000's of banks and credit unions that all do shit differently. It takes a while to build a database that can address all the subtleties of ACH and it never ends.
As you know, we only charge on settled checks and there are no return fees or fines or other fees whatsoever. Makes it pretty attractive.
Bottom line is that you make money with checks, despite the cons.