The Business Check Process

How It Works

Here is a step-by-step explanation of ACH or business check processing:

1. A receiver authorizes an originator. This is where the ACH entry business check process begins. An originator can be a person or a business, such as a cable company, gas company, or an employer.
2. Consent is established. The receiver must provide verbal, written, or electronic consent to the originator. Written consent usually specifies the amount, frequency, and date of the transaction. Verbal authorization has to be recorded or the originator can instead send a receipt of the transaction on or before the date the transaction occurred. An electronic consent involves the customer reading the terms and conditions of the agreement and then selecting some sort of “I agree” option.
3. The originator creates an ACH entry. The next step of business check processing involves the creation of an ACH entry with an originating depository financial institution (ODFI). An ODFI can be any financial institution that handles ACH origination.
4. The entry is sent to an operator. The entry is then passed onto an operator, which is usually the FED.
5. The entry is passed onto the RDFI. The ACH entry is finally passed onto the receiving depository financial institution (RDFI), upon which the receiver’s account is either debited or credit.

Features of Business Check Processing

• Save your company the expense and hassle of managing paper checks or trying to set up an ACH system yourself.
• Business check processing does not require you to have an Internet merchant account, so transaction and processing fees for companies are very low.
• State-of-the-art security screening for your and your customers’ privacy and protection.
• Dedicated support team to guide you through the ACH implementation and processing system.