Check Processing

We’ve worked with grocery stores, retailers and convenience store operators to integrate check payments for the past two decades. We understand each component that is involved when processing a paper check. We encourage each client to move from paper check to Electronic Check Conversion (ECC) to reduce paper and labor costs, and to increase the ability to earn revenue on check returns. If your business still accepts checks at POS, we encourage electronic check conversion.

We deliver a complete turnkey check authorization and conversion program. We streamline the process from the time the customer pays to the time you get paid when a manual check is involved.

Check Verification

Merchants First provides a service that protects you from returned checks and lost funds. We have access to one of the largest databases in the nation that catalogs positive and negative check records. This database is provided by 280 collection agencies across the nation, with over 180,000 contributing merchants. This database’s knowledge accounts for nearly 95% of the checks written for retail shopping in the nation. If a check is written that’s not in the positive database, the customer will be identified as having an unusual level of check-writing activity, or having young checking accounts.

Personalized Service Through Detailed Data

We believe that you and your managers may be the best judge when it comes to deciding if a check should be accepted. In some cases, a “YES/NO” authorization may be sufficient. However, for the rare occasion where you have a loyal customer who happened to return to the store three times that day because of a birthday party later that night, you’ll have the ability to override the tendency for the system to decline her after the third check that day.

Our system supports 88 velocity parameters that will give a warning based on a rule set. You have the ability to establish these parameters ahead of time. If a customer is flagged, you’ll received detailed information at the POS for the manager to accept the check or not.

The following are examples of DECLINES and WARNINGS:

We provide up to 192 bytes of warning or decline data to give objective information about the account. For example, a decline can be as shown (in a textual, human readable format):

DECLINE CHECK
NUM UNPAIDS=9
AMT UNPAIDS=380
COLLECTACHECK TAMPA
800 555-1234
COLLECTIONS R US
800 555-8888

WARNING
MANAGER NEEDED
YOUNG ACCOUNT
DAY/NUM CKS=3
AMT/DAY=180
DAY CASH=50
WIN/NUM CKS=5
WIN/AMT CASH=90

About Warnings & Declines for Check Verification

The national database is updated over 300 times/day (over 91,000 records each day.) Because the database is frequently updated, the number of “false declines” is reduced. Our competition relies on merchants to update the database, as opposed to collection agencies, and can lead to “false declines” in other stores where merchants use different technology. Our database is updated by collection agencies that add and remove checks. Additionally, because agencies are governed and removed and is governed to remain compliant with the Fair Credit Reporting Act (FCRA.)

The national database is updated over 300 times a day (with about 91,000 records a day), thus minimizing the number of “false declines.” These “false declines” are often issued by our competition to a customer that has paid for his returned check, but is still getting declined. This is a major issue with other national databases that rely on merchants to update the database, as opposed to collection agencies that add and remove checks, and are governed and reviewed by various agencies for compliance to the Fair Credit Reporting Act (FCRA).

Payroll Verification with Merchants First

Merchants First offers Payroll Verification. This processing runs similar to our standard check verification systems. Payroll checks are verified against our national database. If one driver’s license is verified several times, we can provide declines and warnings. Payroll checks can NOT be converted to an electronic item, but can be authorized if the check is deposited at your bank for payment or processed through Check 21.

Electronic Check Conversion

In the past decade, we’ve seen a major shift from paper to electronic check processing, and even in some stores, a complete elimination of check acceptance all together.

If your business is still accepting checks, consider using an electronic check conversion (ECC.) Merchants First understands each component involved in accepting a paper check. Electronic Check Conversions will allow you to reduce labor, losses, float time and bank fees. You’ll also have the ability to earn revenue on returned checks.

Merchants First Check Verification

We offer our clients the most sophisticated check verification system in the nation. We use a national database that’s managed by collection agencies (not merchants) that allow us to give warnings and declines for check acceptance. Our process allows our clients to confidently accept checks and reduce bank fees and processing costs. With ECC, the check is returned to the customer at POS, allowing them to protect their personal information.

How Electronic Check Conversion Works

ECC has gained popularity because it’s efficient, and it’s simple. The process is easy:

The customer gives you a paper check.
We use risk assessment technology and draw upon national databases to determine the rist of accepting the check.
If the check meets verification requirements, the paper check is converted into an electronic transaction at POS.
The Automated Clearing House (ACH) network processes the transaction, and funds are deposited directly into your account within two business days.
The paper check is then returned to the customer for their files and records.

How Electronic Check Conversion Helps your Business & Customers

If your business accepts checks, it will benefit from ECC. Here’s why:

Reduce the amount of bank trips you take
Reduce bank fees and processing costs
Improve cash flow and operational efficiencies
Streamline back office oiperations
Reduce the risk of lost, stolen or damaged checks
Protect your customers' personal information

Customers prefer ECC, too. Here's why:

The likelihood of identify theft is reduced
Record keeping and account balancing is easier
Theri preferred payment method is accepted

One Time ID Tender

Everyone enjoys being recognized and remembered, especially loyal customers. Our ability to support one-time ID tender allows our clients to strengthen relationships with their loyal customers. When you use Merchants First system, we can open up our check verification parameters to accept every check coming from loyal customers (unless they have negative data in the system.) There are two options our one-time ID tender can work:

Option 1 -

For a short period (typically 30 days) we will gather history on these customers.
Then at the end of the 30 days, we will implement a change to ask an ID on any customer that we have not seen in the past 30 days.
The only customers that will get an ID prompt are those that have not written a check in the past month at your location.

Option 2 -

Prompt for the ID on any check in which we do not have an ID attached in the national database.
Once we key in the ID and cross-reference the ID to any other outstanding checks on that ID, the customer will be approved.
The next time his/her check is processed, we will not prompt again, as we have the ID on file.
Normally we will re-prompt for an ID a year after the ID was originally presented in order to refresh the data.

Customers appreciate that their loyalty goes recognized, and that the payment process is simplified.

POS Systems

We work with the FIRST company to certify the majority of POS systems. We know POS like the back of our hands and can assist POS dealers in making changes to support check authorizations and/or ECC. Below is a certified list as of 2010:

All certs below (except IBM Ace) utilize MTX WInEPS or Connected Payments.

IBM Ace
ISS45 / StoreNext / StoreLine (Retalix) v7 and v8
ScanMaster
NCR ACS
IT Retail / MSS Global
EZ Scan / LogiVision
SMS Loc
AutoStar

Outside of integrated point-of-sale solutions, we also support a wide range of stand-alone Dial and IP enabled terminals, such as the Verifone Vx and Tranz terminals, Omnis and Hypercom units. In addition, we have PC Charge installs for ECC. Please contact us with any questions.

ACH Processing

We have an extensive network of ACH and check verification solutions for companies who accept ACH payments. Customers are embracing ACH as a more sensible option when purchasing online, or through a billing system or call center.

Credit cards and plastic payment methods are becoming more popular, however, some still prefer to pay via check for both personal and business transactions. By offering this alternative to customers, you’ll ensure that you complete the sale. Even if customers want to purchase online, by offering ACH, you’ll allow them to pay online while still using their checking accounts. Customers will be pleased that you accept multiple forms of payment and recognize your desire to accommodate them. Plus, in almost any case, ACH processing is more affordable than card processing.

We’re committed to providing you with upmost security for your check acceptance solutions. We have a national database search that ensures checks aren’t fraudulent. We also verify that checks submitted have valid bank account structures and come with proper identification and verification. We evaluate each company independently to determine what levels of verification are required to limit losses.

How Our ACH Process Works

ACH works through a virtual terminal that checks the customer’s checking account and routing numbers. The information is verified against a national database, and the ACH is processed. The virtual terminal allows customers to set up a recurring ACH payment each month, prociding a huge convenience. Payments are still processed via a checking account (not a credit card account), yet automatically dedicted. This provide both you and your customer with a huge convenience.

How ACH Helps Your Business & Your Customers

Offering ACH payments to your customers can provide you many business benefits

Make fewer trips to the bank
Reduce bank fees and processing costs
Improve cash flow and operational efficiencies
Streamline back office operations
Reduce the risk of lost, stolen or damaged checks
Protect your customer's personal information

ACH payments are also appreciated by your customers who prefer to pay via check, even when it comes to online payments:

Reduce the likelihood of identity theft
Manage record keeping and easily balance their checking account