Copyright © 2005 EFT Network, Inc. All Rights Reserved.
Electronic Check Processing and Deposit
Accounts Receivable Conversion (ARC) / Check 21 Solution
Increase efficiency by alleviating time consuming processes
Modify antiquated filing systems
Quicker access to receivables
Consolidation of accounting for multiple locations
Business Challenges
Checks deposited faster Sale tool for reselling As part of a front-end RCK System for potential clients Drastically reduces transaction fees
Business Opportunities
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There are an estimated 14 billion check remittances each year1
“Win-Win" innovation. Consumers have more protections and receive more information than when their checks are processed in a traditional manner, and businesses and financial institution can collect checks more cost effectively
Introduced in April 2002, ARC transactions totaled 24 million equaling $4.71 billion1
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Almost 5% of all transactions processed through the ACH Network in 2002 were ARC transactions
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18,982,484 ARC transactions in 1st Qtr 2003, a 152.45% increase over 4th
Qtr 20022
1 Source: Global Concepts 2002 – The Future of Accounts Receivable Conversion by David Stewart.2 Source: NACHA – The Electronic Payments Association.
Industry Facts
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Understanding Check 21
What is Check 21?
- Check 21 provides a Retailer/Merchant or Biller with the opportunity to convert any type of paper check, for purposes of transiting it electronically, where it may re-emerge in the bank clearing system as the legal equivalent of the original check through a substitute check document known as an Image Replacement Document or IRD.
- It is applicable to ANY type of Check or instrument with a MICR* line
*Magnetic Ink Characters at bottom of every check
- It does not require permission or notification of any kind- IRD must meet certain formatting requirements
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Consumer
Consumer writes a check for $100
Consumer Check
Check is issued to Joey’s Pizzeria
Merchant
Merchant deposits $100 check into their Chase Bank account
Merchants Bank
CHASE
In return, FRB gives Chase $100
Citibank verifies if funds are available in Consumers account
Consumers Bank
CITIBANK
FRB routes check to Consumers account at Citibank for processing
Consumer receives check in statement
Funds are available and Citibank debits $100 from Consumers account to give to FRB
Chase routes check to FRB
FEDERAL RESERVE BANK (FRB)
Provides funding to Banks
Provides check transport system by planes, trains & trucks
Check Clearing Process
EFT Network’s ARC /
Check 21 Solution
ARC / Check 21 Solution
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EFT Network’s Accounts Receivable Conversion (ARC) / Check 21 Solution in
conjunction with our superior Image Replacement Document (IRD) technology, is a
premier single point of entry system that processes and deposits any type of paper
check received via U.S. Mail or at payment locations, deposited as electronic
transactions.
Processes thousands of checks per day with deposits credited into your bank account within 24 to 48 hours
Built on a flexible, web based infrastructure allowing easy integration to our various types of imaging scanners
Seamlessly capture accurate check images and MICR data information that automatically appears in the data entry fields
Manage your business transactions online, 24/7
Upload and import files into your data processing or accounts receivable system
Submit checks and transfer funds electronically anywhere, anytime, anyplace
24/7 access to retrieve check images and authorization via our secure website
Real-time verification database reduces risk of accepting bad checks and collection costs
Upload files to update your in-house accounts receivable system
Checks received through any remote or branch office/store locations can be deposited through one banking institution/account, simplifying bank reconciliation processes
Alleviate a trip to the Bank
No Bank deposit fees
Save space and money – No need to store paper checks or deposit slips
Key Features
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Technology Behind ARC / Check 21 Solution
Imaging technology using multiple types of check imagingscanners linked to a Web based system allows you toscan checks.
Digital Check TS - 350- Accepts 100 checks at a time- Processes 60-80 checks per minute, + or – 3,000 per day - Images both sides of checks in one pass
Digital-Check TS - 220e- Accepts 25 checks at at time- Processes 45 checks per minute, + or – 500 per day - Images both sides checks in one pass
Magtek Imager- Accepts 1 check at at time- Processes + or - 30 checks per day- Images both sides checks in two passes
Imaging Technology
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Digital Check TS - 350
Digital Check TS – 220e
Magtek Imager
EFT Web Hosted Software
Merchant receives checks for paymentof goods and services
Scan. Transmit. Process.
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1.1.
2.2. The checks are scanned using one ofEFT Network’s imaging scanners
Digital Check TS - 350
Digital Check TS – 220e
Magtek Imager
Consumer ItemsNon-consumer Items
ACH Network
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The checks are scanned and processed via EFT Network’s high speed web hostedsoftware and transmitted through the ACH.
The EFT Network system automaticallydistinguishes and converts Consumeritems, processed as ACH items with Nonconsumer items including corporatechecks and payroll checks into Check 21IRDs.
3.3.
4.4.
+
Scan. Transmit. Process.
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EFT Network electronically debits funds
from the customers account and deposits
funds in Merchants bank account. Funds
are available within 24 to 48 hours,
alleviating a trip to the bank.
5.5.
Consumers Bank Merchants Bank
Upload files into your in house accountsreceivable system.
6.6.
Scan. Transmit. Process.
EFT Network Software
Go to your browser and access the
web-site
Log onto www.redeposit.com
Select Customer Login on the left navigation
Web Browser
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Enter your customer information all
in uppercase letters.- File Code- User Name- Password
Select OK
Customer Login
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Welcome Page
Here you can access:
- Transaction cut-off times- Notification of results status- Customer Survey & Daily
Messages
Select ARC System on the left hand screen to get started
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Main Menu
The Main Menu supplies you with all options available in our ARC System
Select Scan Checks to begin processing checks
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Process all checks electronically
Easy-to-use solution, requiring only a check scanner and internet access
Centralized Bank deposits for multiple company locations
Reduce Bank transaction return fees
Upload and import files to update your in-house accounts receivable system
Recover your returned items as quickly and cost - effectively as possible
NSF Checks will be reported within three (3) business days Merchant can redeposit immediately and keep all fees
Benefits for, YOU
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Accounts Receivable Conversion (ARC) / Check 21 Solution in conjunction withour superior Image Replacement Document (IRD) technology provides:
Easy-to-use solution, requiring only a check scanner and internet access
24/7 access to retrieve check images and authorization via our secure website
Concise, real time reporting available on-line
Real-time verification database reduces risk of accepting bad checks and collection
costs
No Bank deposit fees
Files to update your in-house accounts receivable system
Conclusion
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EFT Network, Inc. is Committed to Providing
Superior, Affordable,
ACH and Check Processing Solutions
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EFT Network, Inc.245 Saw Mill River Road
Hawthorn, NY 10532Tel: 914.747.3222Fax 914.747.7218
www.redeposit.com
Contact:Alex Bacon, Vice President of Sales & Marketing
E-mail: [email protected]
Getting Started
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