The world of commerce changed on October 28 th, 2004. The Federal Reserve Bank, as mandated by last year's Check 21 law, is making an important change in the way check payments are accepted and processed in the nation's banking system. Starting in November banks can choose to convert paper checks to substitute digital checks and electronically settle and clear those transactions through the Federal Reserve System. The benefit to commercial business is enormous and the early adopters will be rewarded with speedier collections, less paper handling, and lower transportation and mailing cost. Unnecessary third party vendors are scrambling to recruit businesses and charge large fees for this service.
Of the 68 billion checks written in the United States each year, many of those are handled as often as 6-10 times each by banks and businesses. The Federal Reserve Bank estimates the cost of handling paper checks to be $2.78 to $3.09 per check. This estimate does not include the cost to process and reprocess returned items. This cost also does not include the lost float or time to collect those funds.
Presto provides the tools at the business location to structure a file for the creation of a substitute check under the standards developed by the Check 21 Act. Paper checks can now clear electronically through the process of check imaging and image exchange. An image replacement document (IRD), also known as a substitute check, will be considered a legal replacement for a paper check. This action does not require the permission from the check issuer. Real time interactive transactions between our bank and your business can facilitate your collection services without adding unnecessary third party costs.
Benefits
- Easy to use
- Any form of check qualifies
- Requires very little capital investment
- Provides return status in just 48 hours
- ASP model enables fast implementation and upgrades
- Accelerates access to your cash through reduced clearing times
- IRD transactions are covered by more business-friendly check law
- Reduces risk through image storage and optional check verification
No software to purchase or install, no licensing fees to pay.
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