Managing customer payments and billing just got easier thanks to check processing and collection services. You can choose to use equipment to manage customer payments or work with a check processing service that manages phone, electronic or online check payments for you. There are also check collection companies that provide check collection services so that you can receive payments from nonpaying customers.

Check verification is a service offered by many companies that assures business owners of receiving payments without the worry of dealing with bad checks. Here are some additional things to consider about using check processing services:

1. Get information about check processing services industry experts and check processing companies.

2. Learn about check processing equipment as well as check by phone, electronic payments and online check process options.

3. Use check collection agencies to help you recover money from nonpaying customers.

Action Steps
The best contacts and resources to help you get it done

Learn about check processing services from industry experts and companies that provide solutions

As a business owner, it's important for you to have information about check processing solutions so that you can manage your business successfully. Work with organizations and companies that provide information and services to help you administer your business safely and securely. Learn about check verification so that you don't have to worry about receiving bad checks.

I recommend: Read the information at NACHA, which is The Electronic Payments Association, to learn about billing and collection services for Internet business owners. PayByCheck is a check processing service that offers check verification as well as online check processing services to businesses. Intuit Check Solutions offers check verification for retailers who take phone, electronic and online payments from customers.

Learn about equipment for processing checks electronically or online as well as by phone

Depending on how you choose to manage your check processing, you can either choose to purchase equipment or work with a company that provides electronic, online or check by phone solutions. You can select from check writers that print data on blank checks; signers, which can also endorse checks; and certifiers that verify checks by placing a stamp on the check.

I recommend: Read the article at Bank Systems & Technology to learn how some banks save money with all-in-one coin, cash and check processing equipment. Visit Hedman to learn about the check processing equipment it provides, such as check writers, signers and protectors and how they can benefit your business. Green By Phone offers check-by-phone processing services for businesses. Creative Cashflow Solutions manages online check payments, and Check Composer offers phone, electronic and online check processing services.

Use check processing and collection agencies to manage your business revenue

One of the tough realities of running a business is that sooner or later you're going to need the services of a check collection agency to help you retrieve money from slow playing or non-paying customers. There are also companies which provide check processing and collection services so that you can easily monitor your business revenue.

I recommend: Read the article at VendorSeek.com about the benefits of using a check collection agency to retrieve funds from customers who haven't paid or are slow in paying you. Check Assist offers electronic check processing and check collection services. Go to Merchant Collect to learn about their collection services such as next day settlement and monthly statements that detail the status of recovered funds.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  One of the best ways to get information about check processing and collection services is to talk with other business owners about the services and systems they use.

Check processing companies provide many services to small business owners, including verifying funds and evaluating the credit worthiness of the customer. Electronic check processing takes place immediately and may work like a debit card transaction depending on the company you use. Carefully review the services offered and the methods used to verify checks before signing an agreement.

With check processing, each company provides different options for service. Some companies combine all your electronic transactions such as credit cards with check verification. Your options include using a check processing company that utilizes your existing software, provides new equipment to install or allows check-by-phone processing.

Check processing saves money for small businesses by:

1. Speeding up cash flow.
2. Reducing the risk of a bad check.
3. Guaranteeing collection on bad checks.

Action Steps
The best contacts and resources to help you get it done

Know how to evaluate check processing services

Doing your homework before you sign up with a company for processing checks helps ensure that you pick a reliable company that's competitive with their rates. Some check processing companies work as third party brokers rather than actual processors. Other companies may do check processing through a bank not located in the United States.

I recommend: Ask 26 questions before signing up with a check processing service.

Install point of sale (POS) check processing equipment

Processing checks using a POS system converts checks to an electronic transaction which eliminates the need for physical deposits at the bank. If a check doesn't clear, you immediately return it to the customer, securing their information, and require another form of payment.

I recommend: Electronic Clearing House (Echo) uses a system designed to work with VeriFone terminals, which most retailers use for credit card processing. Celerant Command Retail offers check verification at the register.

Use the Internet for processing checks electronically

With online check payments, the customer provides no identification such as a driver's license and typically lives in another city, state or country. This makes collecting on a bad check more difficult. An Internet check, or I-check, isn't a physical check, which makes it harder to trace.

I recommend: Safeguard your security by signing up with a service that provides full disclosure of its methods, like Pay by Check. AVPS allows you to accept checks online. Optimal Payments includes an e-check solution that includes check verification.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Make sure the check processing company doesn't restrict what you can sell.
• •  Choose a service that doesn't require your customers to register with the provider.
• •  Some companies charge a one-time activation fee, a monthly service fee and a fee per transaction.

Check processing services education and training is important for anyone in the retail business. Whether you own a store or restaurant, if you process checks, check processing companies can help you. As simple as check processing may seem, it's in your best interest to learn as much as you can about it. Whether it's processing checks electronically or check-by-phone processing, you can gain knowledge and train your employees with a few simple steps.

By getting vendor experience, using guides and manuals at your disposal and finding the right check processing equipment for your business, you can master check processing. Here are a few ways to get you started on learning the most you can about check processing and equipment used for check verification.

1. Gain experience from vendors and agencies specializing in electronic check processing.

2. Use check processing equipment guides and training manuals to learn more about how they function.

3. Learn about the variety of check processing equipment available and how to run them.

Action Steps
The best contacts and resources to help you get it done

Learn from agencies that specialize in electronic check processing

A agency that specializes in electronic check processing equipment or information can help you make a decision on what type you need and require to run your business. They are also experienced in the training and education that you seek. A check processing agency can demonstrate the different equipment, showing you the benefits of a certain type over another.

I recommend: FFIEC has a training manual on check clearing and how this protocol works. ECAP offers training materials for online check processing.

Utilize check processing training guides and manuals

Check processing guides and training manuals are an advantage when learning how to use your equipment. These guides often come with specification sheets and a diagram showing functions and capabilities. They usually also have information on service issues or extra parts.

I recommend: Pay Simple offers a demonstration of their equipment by simply supplying a point of contact. The Department of Health and Senior Services has guides on how to utilize machines for retailers who accept WIC.

Study the many different varieties of check processing service and equipment

There is a variety of check processing services and equipment to choose from. From online check processing to check by phone, it all depends on your individual business and check processing needs. Whichever you decide, it's a good idea to explore the different check processing equipment you can choose from.

I recommend: NSF Check Processing has training in a vast number of regional offices and lists who to contact. WareSeeker has training materials you can download, some of them free.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Find out if it is cheaper to lease your check processing equipment or to buy it outright.
• •  Always have enough incidentals on hand for your check processing equipment such as receipt or printed check paper.

Check processing services can help you process multiple and recurring payments as well as verify available funds. These service can lower the number of non-sufficient funds checks and charges. Many small businesses are choosing to use these service to help them have peace of mind about using their checks. There are some industry terms and phrases that could confuse new customers. Learning the meanings of check processing services key terms reduces confusion and helps you find the services you need.

Action Steps
The best contacts and resources to help you get it done

The Electronic Payments Association

The Electronic Payments Association, more formally known as NACHA, oversees the Automated Clearing House (ACH) companies. NACHA institutes rules and regulations for all ACHs.

I recommend: NACHA's site provides important information regarding check processing for banks and businesses.

ACH

The Automated Clearing House (ACH) is a nationwide bank transfer network. The ACH uses a batch system to conduct multiple transfers at once. The Automated Clearing House can be used for direct deposits, business-to-business transfers and direct payments.

I recommend: The EFC offers information about the Automated Clearing House network. Read more about the ACH at the BankingGlossary.

ITI Internet Services

ITI Internet Services check processing helps businesses set up processing over the Internet, which is much more cost effective than accepting credit cards. This company charges fees that remain the same regardless of the amount of the check being processed.

I recommend: Find out more information about ITI Internet Services.

E-check

An e-check, or electronic check, is a check that is transferred through the Internet. Many check processing companies allow e-check transactions so that their customers can accept check payments over the phone.

I recommend: Hearst Seattle Media provides an article about the rapid growing popularity of e-checks. OP Payments supplies an example of electronic check services.

NCN

National Check Network (NCN) is a national database of more than 120 million bank accounts across the country. This network is commonly used for check verification and approval.

I recommend: The National Check Network website provides a wealth of information about the network. Security Check also offers information about NCN.

RPM

RPM stand for a Recurring Payments Manager. RPM is also called automated recurring billing (ARB). An RPM is a check processing service that allows users to process regularly scheduled payments. These are commonly used by customers who pay the same bill amount each month.

I recommend: Electronic Clearing House provides more information and an example of an RPM system.