Using the NACHA regulated ACH network, PayByCheck allows your customers to pay for your goods and/or services electronically using their bank accounts. Our Electronic Check Processing (ECP) is an excellent solution for qualified organizations, reducing the time of receiving paper checks by 1 to 5 days.
Payment Settlement
One of the most attractive features of PayByCheck is that funds collected on your behalf are settled through ITI's bank account, thus returns are also settled through our account. Your bank may charge you between $20 - $40 in returned check fees for each return, but our return fee for verified transactions is a mere $4. Since returns typically occur within 3 banking days, we hold the funds for your transactions to allow them time to reach the payee's bank. Depending on your type of business and your check return types and/or averages, we settle collected funds via ACH to your business's bank account within 3 to 5 business days. Late returns occurring after we settle to you are retracted from your bank account, so it is important to ensure there are always excess funds in your account to cover these instances. Unfortunately, ECPs can be returned by your customers' banks up to 90 days after they were originated.
ACH Eligibility
Due to the risk of fraud and returns, NACHA deemed some types of organizations as ineligible to participate in the ACH network. These organizations are as follows:
Ineligible Organizations
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Furthermore, we are unable to process ACH transactions on behalf of any entity that is not licensed and registered to conduct business in the United States and/or has not been in business for at least one year.
Sign-Up Requirements
Because ACH processing is regulated by NACHA and new customers must be approved by our bank, the following is required for sign-up:
- Completed & Signed ECP Application
- AutoPay Form with copy of voided Pre-Printed check* from Customer (for billing of ITI fees)
- Settlement Form with copy of voided Pre-Printed check* from Customer (for deposit of originations)
- Copy of an Officer's Drivers License
- Copy of Business License and Articles of Incorporation if an LLC or Corporation
- Last 3 months checking account statements showing account in good standing and strength of revenue
- Copy of last year's Federal Tax Return
- Financial Statements (Income and Balance sheet)
- 2 pictures of Customers business - 1 outside and 1 inside
- Proof of Authorization (What the customer sees when accepting payment terms)
Once the above requirements are received, our Risk Management department will typically respond within 5 to 7 business days. All information received by customers is kept in a secure location, is handled with extreme care, and is always kept confidential. We will never release any of your records to a third party (other than our bank) without a court order.
Assuming your account is approved for ACH, your information is passed to our implementation team. They will assist you throughout the entire implementation cycle, including website set-up and test cycles.
Service Integration Options
There are 3 choices for payment interfaces, please see below for details.
1) Standard / Pop-Up Payment Interface
Easy to use and implement, the Standard and Pop-Up Payment Interfaces enables our customers to accept check payments from their payees by simply adding HTML code to their website. PayByCheck also supports links that create a virtual shopping cart to hold multiple items (not supported with the Pop-Up Payment Interface). A simple to use Link Maker is located in the PayByCheck Utilities.
2) APN Enhancement for the Standard / Pop-Up Payment Interface
The Assured Payment Notification system (APN) is a FREE service enhancement to allow merchants greater integration with the payment processing engine. The APN system, once activated via ITI Utilities, enables customers to receive HTTPS Requests from the payment processing engine. The HTTPS Request is sent to the customer's APN URL (a web page containing a script that extracts the HTTPS Request parameters) after the customer's payee has processed a PayByCheck transaction. Customers are then able to gather and store transaction data for review and analysis.
- Sample scripts and documentation available to all PayByCheck users
- Supports HTTPS GET and POST using a standard CGI interface compatible with virtually all scripting languages
- Fields supported are: Payee Name, Amount, Reference Number, Item field, Transaction Status, and Email
- Intelligent agent retries sending message for up to 24 hours or until delivery is confirmed by the customer's server (for "server not responding" errors; other errors are sent to ITI support for resolution)
- APN is controlled directly by the customer from within ITI Utilities
Direct Processor XML Interface
The Direct Processor XML API is designed for high volume customers who wish to control the customer experience. It enables customers to send data (request query) directly to the payment processing engine, as well as receive data (response query) directly from the payment processing engine. Using this system, customers can fully customize the front-end web application using nearly any technology, and create their own customized decision-making reports using the captured data from the response queries.
- Allow for direct connection to the PayByCheck payment engine using industry standard XML over HTTPS
- Certification against our test server will be mandatory before going live
- Application certification required before going live
- Application compliance review every 6 months
Instructions
To review the technical instructions for implementing any of the above payment interfaces, click here or contact our support department
