EFT at the Point of Sale is a new service that allows merchants to convert checks at the POS into an Electronic Transaction.    The check is used as a source document by the merchant for the EFT transaction.  The client gives authorization for the EFT and for a fee if the item should be returned by signing a stamped receipt on the back of the check.  The check is imaged and uploaded via the web in case it needs to be retrieved for collection at a later point.

EFT at POS provides for tremendous efficiencies in the store.  It allows for all the efficiencies of check conversion but the conversion is done in the back office – therefore the cash register lines move quickly.

1. At the point of sale a customer presents a completely filled in check for the payment of goods/services.
2.  The check can be verified by the cashier – this is totally independent of the POS EFT process.
3.  The clerk stamps the check with an EFT authorization stamp – the authorization allows the check to be used as a source document for the purpose of debiting the consumer’s account for the amount indicated on the face of the check.  The stamp also covers paper drafts (if they need to be created) and the collection of a return fee in case the item is returned.
4.  The customer signs the authorization and the clerk retains the check.
5.  The clerk stamps the customer sales receipt with the same stamp authorization stamp.  This gives the customer a copy of the authorization verbage which she has agreed to.

1.  The merchant collects all the checks that are presented during the day.
2.  Using a web connection to the EFT Network and an imager the checks are scanned into the EFTN servers and are turned into EFT transactions.   The transactions are presented to the ACH and the funds are debited from the check writer’s account.
3.  Checks not presented by the maker of the check (Payroll, Money Order or Travelers check) can be deposited as a Check 21/IRD  item. 
4. The funds are credited to the merchant in 24 to 48 hours.
5.   A standard EFT report is available for all transactions – detailing the items that were collected or not collected and if not collected the reason why.  The report is downloaded by the collection agency for reporting to his merchant client and for beginning the representment and collection process.
6.   All items that are eligible for representment can be automatically resubmitted along with a collection fee.  The representment can be conducted twice following the initial presentment of the item.