Online Check Processing

Another Innovative Tool from MERCHANT PAYMENT SERVICES to help merchants Increase Sales.

Electronic Check Processing, more formally known as ACH (Automated Clearing House) is a form of electronic

payment. ACH is often confused with a wire transfer because it works in a similar fashion. However, unlike a traditional wire transfer, it can be used to process higher amounts, or for small payments which may settle from 3 to 4 business days.

Hundreds of companies and banks are turning to ACH processing when they need to offer direct debit options, manage direct payroll deposit, or for converting conventional paper checks. It is also effectively used for accepting checks online from a shopping cart or through the online terminal.

ACH transactions are resolved almost in the same way how checks are. The clearing house files all transactions daily categorized by where the check was cashed or deposited, totaling the amount, and credit or deduct all accounts accordingly.

MERCHANT PAYMENT SERVICES can provide you with many ACH options depending on your business type and needs, providing you with the most advanced processing solutions, backed up by our years of experience!

Electronic Check / ACH process for Merchants

Transaction is Created: To create a transaction or in other words, to solicit a charge from a customer, or to credit a customer the merchant logs onto MERCHANT PAYMENT SERVICES Virtual Terminal and enters customer information such as Name, Address, Amount of transaction, Routing Number, Check Number, and Bank Account Number.
Transaction is submitted to the Federal Reserve for Authorization: MERCHANT PAYMENT SERVICES submits the transaction information to the Federal Reserve Bank which allows for the fastest processing available. All transactions are stored in a database that is secured by the latest security and encryption standards and will be included on your monthly statement. Note: once a transaction has been submitted, it cannot be canceled or modified.
Transaction is Cleared or Rejected: As soon as the transaction has cleared, the credit amount is deposited into the merchant’s checking account. Banks may still reject a transaction even after it has been cleared, which is known as a charge back. All returns or charge backs are resubmitted for payment. MERCHANT PAYMENT SERVICES can work with you to minimize costs of returns and charge backs.

Due to the nature of the Federal Reserve and the structure of the banking industry, ACH transactions cannot be completed instantly, however, a typical ACH transaction completes within 3-4 business days.

Merchant Application Process for iCheckGateway.com

Merchant completes the following forms:
- iCheckGateway.com Service Agreement
- Financial Reference
- Entry Class Codes
- PPD Authorization form (For recurring payments)
- Merchant includes copy of business license
- Merchant includes copy of Void check
Merchant submits completed forms to Merchant Payment Services
Merchant Payment Services submits forms to iCheckGateway.com for account approval
After 2 to 3 business days, account is approved or declined
After account is approved, account information is sent to Merchant Payment Services
Merchant Payment Services sets up merchant account in iCheckGateway.com
After account is set up, Merchant Payment Services informs merchant and conducts training
Once the merchant is trained, the merchant will have the ability to set up other user accounts for staff within their iCheckGateway.com account
After completion of above, merchant is ready to accept checks electronically

Process details and time of check processing

After a check transaction is batched and processed at 5:00 EST Monday through Friday, the merchant will receive funds in their banking account 4 business days after the transaction is batched, the day of the batching and processing doesn’t count in the 4 days

Easy Internet-Enabled Electronic Check Processing

Electronic check processing fees are typically lower than those of credit cards or PayPal, so you can keep more of your money. MerchantPaymentServices.com provides merchants with the tools to accept and process payments from consumer and corporate bank accounts directly from the online store, online bill payment portal, or through the MerchantPaymentServices.com Terminal. This capability provides consumers with an expanded range of payment options enabling merchants to broaden their target audience and thereby grow online sales volume, increase the chance of collecting account receivables, and overall speed up billing processes.

Credit Card vs. Check

	Sale	Discount Rate	Transaction	Fees	Net
Credit Card	$200	2.35%	$0.30	$5.00	$195.00
Check	$200	0.00%	$0.55	$0.55	$199.45

You Don't Accept Electronic Checks Online?

Number of Transactions Per Year

For More Information

If you have Questions or Requests, you can:
Email us at info@merchantpaymentservices.com,
Call Customer Service At 800.454.3158 OR
Contact Us via our online form.