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What is check by phone? Check-by-phone services are offered by merchant and print a paper check with all the relevant information with the aid of software or provide electronic access to the Automated Clearing House of the Federal Reserve Board, ACH. How Check by Phone Works The Merchant accounts use myriads of methods to process checks by phone. One method is the electronic funds transfer, or ETF. All the important personal details are collected over phone and entered into the computer. The details are forwarded to the ACH, which processes the data and electronically deposits the money into your merchant account. Other services allow you to take the information over the phone and create printed checks that are then deposited into your account. Unique mode of payment Receiving checks over phone allows controlling sale. This payment mode has been accepted since 1970s. With the development of technology internet has made possible for a wide range of industries to receive check via telephone as well as accepting checks online as a form of payment through a PCI compliant ACH payment processing network. It is really very interesting to get paid for goods and services purchased over telephone and internet has made it easier and safer. This method reduces the cost and paper work and increases the cash flow. The check by phone software allows to accepts check by fax and online. Since these checks are web based, a computer and internet is needed. Private data such as bank routing number and account number is transferred by ACH to the server and the customer’s account is automatically debited and the funds are deposited directly into a business account. This mode of payment has some great advantages • Reduces the cost • Charge back risks are decreased • Business can easily access money which eliminates the wastage of time for the check to arrive in the mail. • This mode of payment increases competitive advantage. • Non-credit card customers are always welcomed to embrace this mode of payment. • It even reduces the cost associated with processing mail Accepting checks over the phone makes your life a lot easier by eliminating all the running around that is associated with local bank deposit. Myriads of insurance companies have embraced this payment mode because this is a better payment technique. Think about this, if you are a collection agency, you need to collect money from people in different States in the US and you also need that check to clear as fast as possible. What you don’t want to do is have these people send you a physical check (even though you can still key in the information and have the checks process) but ideally, you just want to collection their information over the phone and process the check right away to save time because you need that check to clear fast. Receiving check over phone is a cheap and secure method of non cash payment. Taking checks online through the telephone does not require signature, discount fees, charge backs, and leases which enable a business to quickly and easily accept check payments over the phone. For more information please visit : http://vchecksolutions.com/
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