Frequently Asked Questions
Of course!! Pre-authorized paper bank drafts are completely legal. The primary requirement is that you have permission from the person who signs the account (your customer). Once you've received pre-authorization, you can take the information by fax, phone, internet.
Paper drafts are explicitly established as a legal method for payment as provided in: Uniform Commercial Code, Title 1, Section 1-201 [39] and Title 3, Sections 3-104, 3-403, 2-403 Code of Federal Regulations, Title 12 Chapter II, Part 210 Regulation J, Federal Reserve Bank, Part 2, Sections 4a-201 to 4a-212 Also see Romani v. Harris, 255 Md. 389
So is that really all there is for legal requirements?
Not exactly. The Federal Trade Commission in late 1995 proposed rules that became law in January 1996 (Regulation 16CFR Part 310) requires businesses who take checks over the phone to have a "verification" procedure in place. This could include receiving written authorization by mail or fax, recording the "authorization" phone call with customers permission, and/or sending out written notice to customer prior to depositing the paper draft. This notice only needs to be in the mail prior to making deposit. TurboCheck software prints a check stub that fits into a standard #9 or #10 window envelope which may be used as notice.
Will my bank accept them (paper bank drafts)?
Bank drafts printed using TurboCheck meet all Federal Reserve and ABA rules and regulations, providing you have taken the effort to assure proper MICR Font Alignment. And you can use the default signature format and sign them yourself as Authorized Agent of account holder.
The process is slightly different depending on how you are taking the information: checks by phone, fax, email or online ordering system. It is very similar to the way businesses accept credit card payments over the phone. You will take the checking account number, bank routing number and other items commonly found on all checks. We provided you with a basic sample phone script to help capture all the necessary information . Many people type the information directly into TurboCheck as it is being received; others take the information and "batch" the data entry at a later time. You then print out the paper drafts (checks) on each customer's checking account with you or your business name as the payee. Then deposit the checks into your account! It's that simple!
Will my customers fear giving out this information ?
Some may question you because they have never heard of this new process. Our sample phone script will help you . And if you are accepting checks over the internet using our Secure Online Check Solution Confidentiality & security will be clearly explained. There are really no concerns since it is not much different that giving out credit card information over the phone and you will be letting them know that you print all paper drafts yourself; that you don't send them out to a service.
Aren't there businesses that provide this type of service, why not use a Service Bureau?
Why should you ? Most of the service bureaus charge a setup fee and some also charge monthly maintenance fees of $25.00 to $50.00. And others even add a printing charge as high as $1.50 per check and you still have to wait for the check to arrive in the mail. And if they are sent via overnight carrier, you incur another charge (shipping fee).
Before TurboCheck, when you had to pay the outrageous price of $195 to over $695 for software that allows you print paper drafts IN-HOUSE, many people opted for these services. But now when you can purchase TurboCheck for only $99.95 --who needs them?
Wouldn't most people prefer to use Credit Cards over using checks?
Most people use credit cards because of their convenience, which with TurboCheck can now be offered to any person with a checking account. A recent report cited almost 50% of consumers prefer to pay with a check and about 20% prefer to pay using a credit card! There are over 60 million Americans who don't have a credit card and millions more with credit cards that are at their credit limits.
As a business owner, you can increase your business by accepting checks by phone, fax, or online.
When you register your copy of TurboCheck, we'll send you 50 blank checks for just $8.00; or 100 blank checks for $12.00. When you need more checks, you can locate a local supplier or order them from us. Just send email to supplies@inner1.com and you'll be sent a supply form with prices.
Do I need to purchase expensive Magnetic Toner cartridge for my laser printer?
You can if you want, however many people do not use such a cartridge. The toner found in normal laser cartridges have a small concentration of magnetic particles by default. And most banks have already gone to OCR (Optical Character Recognition). There are some people who actually use an Inkjet or BubbleJet printer instead of a laser printer and have no problems! A dot matrix printer will not work, so you do need a laser or inkjet printer.
When you integrate our Secure Online Check Solution it's very secure since your customers information is never sent accross the internet without being encrypted. We use encryption to receive the data from your customer and also when transmiting to it to you.. For more information on the integration of our Secure Online Check Solution see the section - Checks online! .
Inner1.com - the inner workings of web commerce
E-mail: insight@inner1.com©
Copyright 1998-2001, Inner1.com.
