eCheck or Electronic Check

A method of converting a paper check into an electronic item. This service was developed to reduce the costs associated with accepting checks at the Point of Sale (POS) and to expedite the settlement of funds into the store's bank account through the use of the Automated Clearing House (ACH) network. This process is used by a growing number of retailers where you hand the cashier a check, they scan it, stamp it VOID, and hand it back to you.

eChecks use a very limited amount of verification, typically one of the national negative databases to determine if the check should be accepted. This minimal verification is sufficient and no digital authentication is required because the customer is physically standing at the cash register where the clerk can see the check, ask for and physically look at the customer's identification, and the check writer is more than likely a local resident.

But what if you can't see your customer, look at his identification, and he isn't local? What if he is making a purchase from your web site?

i-Check or Internet Check

The i-Check is designed for transactions where more complete verification and digital authentication is not only good business, but REQUIRED by the rules that govern ACH transactions. Since you can not look at your customer, review her identification, look at her check, and she is not likely from your neighborhood, you must use extensive verification methods. i-Check does not simply use one negative database but rather multiple negative databases containing information on known bad check writers, positive databases containing real-time information from thousands of banks about their current bank account statuses, and also fraud databases, velocity algorithms, and an accurate address verification system to verify your customer's name and address. On top of all of these verifications is the i-Check authentication where we capture your customer's digital signature and meet the requirements of Federal Regulation E which govern electronic transactions.

Without the complete comprehensive verifications and authentication that is used by i-Check, you run the risk of financial losses from fraud and possibly fines from your bank.

PayByCheck service works only with U.S. checking accounts; all transactions are denominated in U.S. dollars drawn and on U.S. banks.

No, not at this time.

Since customers can dispute an ACH transaction for up to 90 days after it clears their bank account, late returns do occur. Fortunately we have such an extensive verification process, that late returns aren't very common; our average late return rate is 0.44%.

The maximum BAD return rate for any ACH processing business is 1%. Bad returns encompass any return initiated by the bank account owner, i.e. "Customer Advises Not Authorized", "Payment Stopped", "Corporate Not Authorized", and "Authorization Revoked". NACHA, the entity that regulates the ACH Network, has determined through research that certain industries typically result in higher bad return rates, therefore deeming them ineligible to participate.

Businesses which have been operating for less than a year do not have enough banking history to determine their current return rate with their paper checks. We want to ensure that we do not jeopardize our overall return rate by accepting a new business that can not show a solid statistic for returns. These customers are eligible for PayByCheck's paper check processing, and after a few months of solid processing, can re-apply for ACH processing.

Receiving payment information does not equate to receiving the money for the transaction. We send ACH files containing all payees' transaction data each banking day, Monday through Friday excluding holidays, which include transactions through midnight PST the preceding night. Once we send the files they go through the ACH Network and Federal Reserve (FED), transferring the funds accordingly; this process takes another full banking day. Since the FED does not know if the account information is valid or if the check writer has funds to cover the transaction, they simply pass the money through the system. Once the check writer's bank receives the transaction, they can respond back with their own transaction, which could be a return if the money is not available (NSF, Account Frozen, etc.) or the account information is invalid; this process takes another one to two full banking days. 92% of all returns occur within three banking days, but different industries have different averages. Therefore, 3 to 5 banking days reasonably ensures that the money we settle to customer's accounts is the actual amount they are owed (less returns).

No, but we send them through negative and positive verification systems. Since all banks do not participate with our positive verification vendor, it is not possible to know for certain that the account is valid, eligible for ACH transactions, and/or that there is not fraud involved with the transaction. Currently, there is also no way to ensure that the account has funds available for withdrawal , or the ability to put a hold on them such as credit/debit card transactions can.

Address validation is a free service that the United States Postal Service offers on its web site or you can subscribe to the USPS database from multiple vendors. Validation simply 'cleans' an address to make sure that it is in a deliverable format. This doesn't mean the address actually exists. Our service, address verification, assures you that the address provided in the check form actually exists and matches your customers' phone numbers.

The PayByCheck AVS database is built from multiple data sources including telecommunications, call centers, consumer goods, insurance, credit, and any more. This service is used by thousands of e-commerce web sites and call centers. There are over 120,000,000 residential and business telephone numbers linked with CASS certified addresses, names and associated data in our proprietary database. This includes approximately 30 million telephone numbers and addresses not appearing in any white page source.

ITI Internet Services, Inc. (PayByCheck's provider) recognizes that you have certain expectations regarding the information we collect and retain about you and how this information might be used. Furthermore, we appreciate the confidence you have bestowed upon us in selecting us as your payment method and therefore want to inform you of the steps we are taking to demonstrate that we are worthy of your trust.

Access to consumer information is based on the sensitivity of the information and our employees' or agents' need-to-know. Consumer information including email addresses, physical addresses, banking information, etc. are never given out to any third party unless instructed by a court order. Employees and agents are authorized to use available consumer information for authorized business purposes only.

The information is transferred directly to our encrypted transaction database by means of SSL Secured web servers. ITI Internet Services, Inc. is highly selective in choosing unaffiliated business partners that assist us in the delivery of our products and services to our merchants and their consumers.

On occasion we may partner with unaffiliated third parties to offer ancillary products and services that may be of benefit to you. When we enter into this type of relationship, we require these partners to adhere to strict standards regarding the security and confidentiality of consumer information.