The Advantage of Real-Time Check Processing Services
Electronic check processing implies check cashing digitally without having to wait for the check to be deposited physically into the account of the receiver. A digital transfer is safer and faster which increases the pace of economic transactions in a more transparent way. Businesses prefer outsourcing check processing services to competent partner because they offer many advantages over an in-house team of check processing. Real-time check processing involves instant checking of the payer’s account balance so that the check can be accepted or rejected for payment. Here are some insights into check processing and getting it done real-time:
How does Electronic Check Processing work?
The electronic check processing service simplifies check transactions that would otherwise require the check to be physically deposited into the account of the payee. It would normally take anywhere between a few days to a week for the check to be credited to the payee’s account provided it does not bounce. This risk of insufficient balance or fraud is always associated with normal checks. But in electronic check processing, the payer draws a check in the merchant’s name which the merchant immediately scans and send to the offshore check processing services provider. This outsourcing partner will check and verify its authenticity and take down the details for clearing. The check is marked void and returned to the payer. The check is cleared in a couple of days’ time into the merchant’s account which is already registered with the outsourcing partner.
The Process
Real-time check processing works similar to electronic check processing. The main difference is that in real-time check processing, the payer’s account details and balance are verified before the check is guaranteed for clearing. In the other case, the payer is usually checked against a negative list of reported frauds which is not sufficient if the fraud is attempted the first time or the payer is not yet listed as a defaulter. Real-time check processing has a very little risk when compared to batch processing of checks. The check processing and conversion services provider will check the details immediately with the concerned bank and advise the merchant to accept or reject the payment.
How is Real-Time Check Processing done?
Real-time check processing is usually outsourced as it requires access to the checks database and tie-ups with the bank and software that completes the verification process instantly. The offshore insurance service provider will have authorized access to such classified information which he checks using the paid software. Licensing such specialized software will not be beneficial to the merchant as checks may not be regular and real-time processing will have to be done mostly with new buyers only. They will already have a good rapport with the existing buyers so real-time check processing will not be required in such transactions.
What are the Advantages of Real-Time Check Processing?
It guarantees payment to the merchant since the check is verified instantly for balance and validity. The transactions become smoother and faster with real-time check processing which also improves customer relations.