MyECheck, Inc. (MYEC.OB), a leading electronic transaction processor, utilizes a proprietary and patented system that can be utilized by both storefronts and ecommerce sites. The company’s remotely created checks (RCC) image service is the world’s first Check 21 solution created to process electronic payments.
The MyECheck system is actually classified under a different set of rules than traditional ACH transactions. MyECheck is governed under Check 21 law and Uniform Commercial Code (UCC state law), which are more favorable to retailers especially when charge-backs are involved.
RCC images can be created and processed through a number of methods. First, clients can phone a call center that enters the client data into a virtual terminal for processing. Second, check data that customers have entered into a retailer’s website can be electronically transferred to the MyECheck system. Third, retailers can send a CSV file on specific dates that payment processing is scheduled so that funds post that day. Finally, retailers can send a batch CSV file over a secure file transfer protocol (SFTP).
As mentioned above, the MyECheck system is classified differently than ACH transactions. The company’s proprietary system actually allows retailers to reach a broader customer base than those only using the traditional ACH method. While ACH’s are barred from processing through certain financial institutions such as small banks, S&Ls, brokerage and business accounts, credit unions, and credit card check accounts, the MyECheck system has the ability to debit these and every other U.S.-based checking account. This single difference allows retailers using MyECheck to provide products and services to a greater number of consumers.
Once the MyECheck system receives customer data, it can create RCC images and insert them into X9.37 files, which is the current standard Check 21 file format. The images are then submitted directly into the banking system for clearing. Prior to authorizing transactions, retailers have the option of having the system verify each customer’s bank account status and determine if a customer has recently bounced a check.
The MyECheck system clearly is the safest, fastest, and cost-effective method for retailers and ecommerce sites to electronically process customer payments. The speedy and secure clearing capability allows retailers to reduce their risk and improve cash flow, which in turn allows any company to provide services and products with more confidence.
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