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- Electronic Receivables Collections -
Helping businesses, banks and financial institutions
with a method
by which to expedite the receipt of funds
at the speed of light.
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How EFT Works
A check is merely a one-time written authorization/instruction to pay, directed to a depositors bank. An EFT Authorization also is a written authorization/instruction to pay but it is good for multiple transactions. It authorizes a depositors bank to move funds from his/her bank account to the bank account of the authorized merchant. This movement of funds is done between banks in an encrypted electronic format, hence the term Electronic Funds Transfer (EFT). The electronic movement of funds between banks is more convenient, efficient, secure, faster and far less costly to all involved than the handling of paper checks. The ACH moves trillions of dollars annually without error.
1.) Debit or credit originator (you) creates Accounts Receivable or Accounts Payable batch(es) of transactions and transmits them
to us via modem in an encrypted format.
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2.) We accumulate thousands of transactions and transmit to the Federal Reserve Bank�s Automated Clearing House (ACH) division before 1 p.m. PST daily, except holidays.
3.) The Federal Reserve electronically transmits withdrawals or deposits to local bank�s general fund along with instructions as to which individual accounts the bank should debit or credit.
4.) Local bank's computers check all transactions from ACH and debit or credit proper accounts. If debited accounts have sufficient funds the transaction is complete and the funds are sent back through the ACH to your bank. If an account does not have sufficient funds to cover the withdrawal by the ACH, an electronic Non- Sufficient Funds (NSF) notice is sent to us and we forward it on to you immediately. You have your monies or a notice of NSF usually within 24-48 hours.
EFT is simple to setup (appx. 20 minutes) to install the Win95/98/2000/XP/NT software and about another 10 minutes to learn to use it. No one�s bank needs to be contacted as everything is done through the ACH division of the Federal Reserve. We provide the authorization forms for you to give to your customers.
EFT eliminates the burden of your customer having to originate and move a piece of paper (check), and also eliminates the burden of the recipient/business having to process the piece of paper (check) when it is received. Instead, the customer benefits from the convenience of having the funds moved in a secure and timely manner based upon the standing written order/authorization. This authorization may be revoked at any time by a written notice from the customer to you, (and only you, not his bank) the recipient. EFT eliminates the danger of lost or stolen checks and identity theft.
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