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Check Processing For High Risk Merchants


electronic-check-conversionElectronic check conversion involves turning a manually written check on a piece of paper into an electronic check. This is made possible by placing the check inside a machine that reads the information off the check. Once the information has been read off the check, the holder usually uses that information to make a withdrawal. Electronic check processing is fast gaining popularity among businesses due to:

• Reduced processing costs
• Reduced billing costs
• Deposits are received sooner
• Increased sales
• Reduce the hassle and cost of paper checks.
• Facilitates more payment options.
• Deposit checks remotely.
• Reduction in bank fees.

First American Merchant Funding offers its electronic check processing services to high risk businesses thereby allowing such merchants to enjoy the benefits of having their checks processed electronically. In the event that your business experiences challenges in accessing electronic check processing, or maybe you’re thinking of switching to a more reliable and professional electronic checks processing service provider, then First American Merchant Funding can be of service to your business. FAM provides services designed to making safe, reliable and hassle free transfer of funds into your account.

Automated Clearing House (ACH) is the authorized electronic network for transfer of funds. It offers an alternative to paper checks. In the US, ACH is used by businesses to deposit funds directly. The Automated Clearing House (ACH) is known to carry out its processing in batches, these batches contain high volumes of debit and credit card transactions. Electronic check processing customers at First American Merchant Funding through their virtual terminal is able to handle individual requests for ACH processing and also process multiple ACH through a single press of a button.

In October 28th 2004 legislation by federal Authorities enacted the check clearing for the 21st Century Act (check 21). The Act makes it possible for electronic check processing by financial institutions. The act came just in time, as federal authorities were after the improvement of the check payment process.

Check 21 entails the scanning and subsequent storing of the scanned document, which is known as an image cash letter. The Federal Reserve Bank approved the file format of X9.37 for the combination of multiple images into a single file. It’s this images that are electronically transmitted through the check payment process. If at any time during this process, a financial institution insists on the presentation of the physical check. The scanned image is printed and submitted to continue the check processing process.

First American Merchant Funding offers the lowest rates and fees for e-check processing even for high risk merchants. Our services are designed to help merchants align their activities with the electronic processing system. This usually requires First American Merchant Funding to work with the business in exporting their existing customer database and smoothly incorporate the electronic check processing system. With First American Merchant Funding, a merchant is assured of not only securing an already established processing company but also enjoying competitively priced packages.