Back Office ConversionBack Office Conversion

Premier Back Office Electronic Payment Processing Solution

Point-of-Purchase Check

Point-of-Purchase electronic check conversion is an older process than back

Conversion Limitations

p

office conversion. Checkcare’s back office conversion has been designed to

replace it due to the following limitations of the point-of-purchase process:

NACHA’s Point of Purchase conversion does not:Process all checks at a single point

Allow for consolidated accounting from multiple locations

Eliminate transportation costs for non-consumer checks

Keep check out times to a minimum

Reduce time consuming check handling processes

NACHA’s Point of Purchase requires:Costly scanning equipment for each check out lane

Significant training of Store Personnel

Change in customers routine for paying by check

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The Back Office Conversion Solution to POP conversionBack Office Conversion can do the following:

Solution to POP conversion.

Replace an expensive imaging scanner at the Point of Sale with an inexpensive rubber stamp

Convert more checks than allowed by NACHA’s POP (Point of Purchase)Convert more checks than allowed by NACHA s POP (Point of Purchase) Program, and still be in compliance with NACHA Rules

Greatly reduce the time it takes to convert all checks at the point of sale, et process checks electronicallyet process checks electronically

Retain the check and authorization in such a manner that allows for easy retrieval of both with one inquiry

Have a system that virtually eliminates the need to constantly train employees for POS conversion

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Other Benefits of BOC

Eliminate the need for a scanner at every Register

Drastically reduce Transaction Fees

llAccept all types of checks at the Point of Sale

Keep check-out times to a minimum

C lid t h dli f h k itConsolidate handling of check items

Greatly reduce the Personnel training required

Improve funds availability through the faster depositing of checksImprove funds availability through the faster depositing of checks

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Point-of-sale requirements1. Imprint or stamp the checkThis imprint/stamp provides the authorization to

Point-of-sale requirements

This imprint/stamp provides the authorization to process the customers payment for their purchase electronically.

This Authorization is the same type taken for allgeneric EFT authorizations, the difference is thisAuthorization takes place at point of sale, and usesthe back of the check instead of a separate piece ofpaper.

2. Consumer ReceiptThe same information is stamped or printed on thesales receipt and handed to the consumer for their

Back of Check

sa es ece pt a d a ded to t e co su e o t enotification and records.

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Endorsement stamp explainedThe Special Authorization Stamp can be broken down into 3 sections

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Authorization allows the check to be used as source information for the purpose of obtaining the customers bank account information from the MICR line to access the consumers account. In essence we are not using the check as a check, but as the source for information we need In the same section weas the source for information we need. In the same section we are disclosing the type of transaction we intend to perform,

PPD for consumer accountsCCD’s for Corporate accounts pPaper Drafts for items we can not clear electronically

Notification notifies the consumer and obtains their authorization for a return transaction fee if the transaction is returned unpaid.

Abides the NACHA rules and Reg. E to describe the manner in which the Company can be notified in the event the Consumer wants to stop the transaction from being processedConsumer wants to stop the transaction from being processed.

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BOC Step by Step Process

Step by Step

The Consumer presents a completedcheck to the Merchant, who stamps or

i h d h

1.1.

prints the endorsement stamp on theback of the check authorizing the ACHtransaction.

2.2. The Consumer signs the authorization forconversion and returned check fee. The check can also be processed through Checkcare’s check verification system to reduce bad check acceptance. The Merchant can either print or stamp the authorization verbiage onto the sales receipt and given to the Consumer.

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Step by Step

At the end-of-day, the checks are scanned in3.3.the back office using one of our high-speedimage scanners that easily interface with ourweb hosted software. The checks aretransmitted and processed through the ACH

+

ACH Network

transmitted and processed through the ACH.

The images of both sides of the source checkwith the authorization is captured at a single

4.4.t t e aut o at o s captu ed at a s g e

point and is processed as one of the followingtransactions:

PPD for Consumer accounts CCD’s for Corporate accounts

Consumer ItemsNon-consumer Items

CCD s for Corporate accounts Paper Drafts Check 21 IRD’s for items we cannot clearelectronically

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Step by Step

Checkcare electronically debits funds5.5.from the customers account and depositsfunds in Merchants bank account. Funds areavailable within 24 to 48 hours, alleviating atrip to the bank.

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Upload files into your in house accounts66

Consumers Bank Merchants Bank

Upload files into your in house accountsreceivable system.

6.6.

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Requires one scanner per store, versus multiple scanners

Summary

q p , pProcess all checks electronicallyMerchant does not need to sort consumer items from non-consumer itemsitemsMinimize the change to consumers’ routine for paying by checkRequires less training that is required for POPConsolidation of deposits for multiple company locations Reduce Bank transaction return feesDatabase verification reduces risk of accepting bad checksDatabase verification reduces risk of accepting bad checksNSF checks will be reported within three (3) business days

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S b it h k d t f f d l t i ll

Summary, Cont.

Submit checks and transfer funds electronically

Convert more checks than allowed by NACHA’s POP (Point-of-Purchase) Program and still be in compliance with NACHA policies

24/7 access to retrieve check images and authorization via our secure website

Real-time verification database (optional) reduces risk of acceptingReal time verification database (optional) reduces risk of accepting bad checks and collection costs

Upload files to update your in-house accounts receivable system

No expensive software to buy.

Accounting for deposits made easier

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