Over 154 Years of Service to the Furniture Industry
 Furniture World Logo

P-O-S Electronic Check Acceptance Introduced Nationwide By TeleCheck Services

Furniture World Magazine

on

TeleCheck Services, Inc., the world's leading check acceptance company, today announced its national launch of Electronic Check Acceptance (ECA) ñ converting and processing paper checks as electronic checks at the point of sale. TeleCheck's roll-out of ECA, in which checks are processed similarly to credit cards and the paper check is returned to the consumer, follows nine months of extensive testing and a limited market introduction. TeleCheck, a subsidiary of First Data Corporation (NYSE:FDC), authorized more than $98.3 billion in checks in 1997. Using existing technology, check transactions can be moved through the banking system, just as a credit card transaction is processed beyond the point of sale without a paper sales draft or physical card. With ECA, merchants reduce paper handling through the electronic deposits of checks, and automatically receive payment within the same amount of time as a paper check. ECA reduces check fraud problems for the merchant, since bad checks are returned directly to TeleCheck for collection. "ECA makes my job much easier. It's not only faster for the customer, but it's easier for us at the end of the day. The next day we don't have to go to the bank, deposit each check and write everything down, it's a lot faster," said Irene Dumitriu, manager of Benetton, The Galleria, in Houston. During the test, TeleCheck processed 125,000 point-of-sale transactions at 300 merchant locations in six test markets: Boston, Cleveland, Houston, Orlando, St. Louis and San Diego. A strong 80 percent of merchants reported that ECA met or exceeded their expectations, while 82 percent of consumers elected to have their checks processed electronically when offered a choice. "Our research showed that merchant acceptance was very high, as they benefited from ease of operations, reduced amount of paper handling and the automatic posting of deposits. The 82-percent consumer acceptance rate for a new procedure is impressive, and we expect that figure to increase as consumers become more familiar with the process," said Randy Templeton, senior vice president of strategic marketing and development for TeleCheck. How ECA Works: At the point of sale, the consumer presents a paper check as usual. Then, TeleCheck converts it into an electronic check through a payment terminal that reads the banking information off the bottom of the check. The consumer simply signs a printed receipt authorizing the electronic transaction, and the paper check along with a copy of the authorization slip is returned to the consumer. A complete description of the transaction is included in the check writer's bank statement for reconciliation purposes, and consumers retain the same rights as today in disputing fraudulent items posted to their account. TeleCheck's ECA process moves transactions through the Automated Clearing House (ACH) network, and follows National Automated Clearing House Association (NACHA) pilot rules for electronic checks at the point of sale. NACHA, a leader in the payments industry, is an association representing more than 13,000 financial institutions. "Electronic checking is the way of the future. Eventually, most checks written at retail points of sale will be processed this way because electronic payments are safer, more reliable and more convenient than paper checks,"î said Louise Clynes, director for NACHA's Electronic Check Council. Merchant Benefits: ECA eases merchant operations and deposits by virtually eliminating labor intensive paper handling and time consuming trips to the bank. Funds are automatically deposited in their account, usually within 48 hours, and merchants need never see a bad check again because all returned checks are sent directly to TeleCheck. Therefore, check fraud problems are significantly reduced and there are no non-compliance items, returned checks or returned-check fees with ECA transactions. By making the process faster, safer and easier, checks will become an even more viable payment option for consumers. For more information merchants can call TeleCheck's ECA hot line, 1-800-697-9262. A copy of the Electronic Checks at the Point of Sale Pilot Guide is available through the Electronic Check Council of NACHA at 703-742-9190. Consumer Benefits: Since the electronic check is processed through the banking cycle in approximately the same amount of time as a traditional paper check, consumers continue to benefit from the same float as a paper check. In addition, since the check writer keeps the physical check, the risk of name, address and other personal information being used fraudulently is substantially reduced. Reconciling bank statements is easy, since ECA checks usually clear within two days and because a complete description of the transaction, including merchant name, settlement date and amount, appears on the statement with other electronic payments, such as direct payroll deposits or ATM transactions. Consumers wanting more information, or a consumer brochure, can call TeleCheck's ECA hot line, 1-800-697-9263. The TeleCheck system provides Electronic Check Acceptance (ECA), check guarantee, check verification, collection services and new account screening to more than 200,000 retail, financial institution, travel and association clients through a sales and service network with offices in more than 90 cities in the United States, Canada, Puerto Rico, Australia and New Zealand. In 1997, Houston-based TeleCheck authorized over $98.3 billion in checks and processed more than 1.9 billion check inquiries. For more information about TeleCheck and its products and services, visit the Internet site at www.telecheck.com. First Data Corporation (www.firstdatacorp.com) is one of the world's leading providers of transaction processing services -- credit, debit and pre-paid card processing; payment systems; electronic commerce and information-based services to both businesses and consumers. In partnership with clients, primarily financial institutions, and a worldwide Western Union agent network, First Data processes the information that allows consumers to pay for goods and services by check or card or any form of payment, except cash - at any point of sale, whether at the retail counter or on the Internet. And, through Western Union, First Data is the global leader spanning more than 150 countries in money transfer services that are convenient, fast and reliable. With an international employee base of more than 36,000, First Data delivers innovative solutions and quality service to a broad base of clients and consumers all needing to transact business - anytime, anywhere. For more information on TeleCheck e-mail them at HVARGA@mail.batesww.com