Best of the ISP-Lists

Getting into E-Checks

Are electronic checks a viable online payment option? Members of ISP-Ecommerce explore the situation.

[January 7, 2000]

On the ISP-Ecommerce list in December 1999, ELH asked for advice on setting up an electronic checks payment option:

"I need information about electronic checks. I already have a credit card merchant account, but I need other payment methods. How do e-checks work, and what companies support them?"

 

One respondent laid out the current universe of e-check options:

[MH wrote] "Although the electronic transfer method sounds complicated, most of the work is done by the processor. It can be accomplished in a number of ways:

1. Manually processing the information on a web page
2. As part of a shopping cart/order program
3. A custom solution integrated with support for the processor's protocols
4. Client software (such as K9 Companion or AutoClear) which often has special features such as recurring billing
5. Check readers, which will print out an 'electronic conversion agreement' and automatically 'deposit' the check via a built-in modem."

[D provided more specifics] "A simple, printer-based option is available at CheckMan.com. It's kind of manual, but very cheap for low volume. An automatic system is available from Authorize.net. Or go to Check Software and download a free trial copy of NOVA Check Mates 3.0. The PRO version automatically takes in form fields from Web forms to create instantly printable checks."

One respondent offered a caveat on printed checks:

[JR warned] "Some banks restrict deposit of 'customer not present' paper checks, and paper checks will become a pain if you get into any volume. Another option is to use a program that allows the merchant to import files so data doesn't need to be re-keyed from the HTML, though some companies can provide an HTML form and CGI scripts to interact with transactions server."

The business development manager for Qdebit touted his company's solution:

[JM wrote] "Qdebit.com is the first company to meet the guidelines set by the National Automated Clearing House Association for use of the Automated Clearing House for payment via the Internet utilizing personal checking accounts. Payment applications are run through secure servers and all information provided by the customer is verified from national databases.

"After verification and acceptance, the transaction is handled through the ACH system and funds are provided to the merchant as Electronic Funds Transfer. All transactions are handled as a single daily batch. Your money is deposited as hard currency in hours, rather than days."

—End