Lockbox Check Truncation

Lockbox Check Truncation is the changing of a personal paper check into an electronic check at the point of sale. The check becomes an Electronic Funds Transfer (EFT) and is processed through the Automated Clearing House. 

The ACH is the federally regulate electronic payment network used by 95% of the country's financial institutions.    

HOW DOES IT WORK?  

1. Merchant receives check for payment of goods or services via mail or delivery
2. Check is scanned by check reader
3. Check data is transferred from the reader into our Windows 95 PC software
4. Check data is batched and transmitted to the EFT NETWORK, Inc. processing center for presentment through the ACH
5. Payment is made to the merchant in 24 to 48 hours - same as POS truncation

   WHAT ARE THE BENEFITS?  

• The ACH will transfer the funds electronically
• The funds will be transferred into the merchant account in 24-36 hours.
• Neither the merchant nor the bank has to process a single paper check.
• Low transaction rate
• Low NSF fee
• No deposit slips to fill out
• No lost or stolen checks to worry about
• No bank runs to make
• No bank deposit fees
• NEVER an NSF or Processing fee from the bank to the merchant
• NSF checks will show up in several days as opposed to weeks - you can redeposit immediately and keep all fees
• Reduced handling costs

WHAT ABOUT NSF CHECKS? 

NSF check information will be reported to the merchant on a daily basis. There will be no bank fees on NSFs since they are electronically presented. We can automatically represent the NSF checks and collect both the face and the fee - all of which is turned over to the merchant.

And the NSF fee is very low compared to bank fees.