GoFuckYourself.com - Adult Webmaster Forum - View Single Post - Congress OK's Electronic Check CLearing Between Banks

jacker · 10-08-2003, 11:38 AM

Online checking works like this:

1) The consumer enters their info from the bottom of their check (or from wherever) onto the payment page. They also enter an ID# in most cases (drivers license, military ID, or SSN)

2) The banking numbers are verified with a positive database to ensure the numbers are valid, then matched against the given ID# to ensure that the individual with the bank account is the individual on the ID.

3) Once the bank account has been deemed valid, the numbers are checked against a negative database of accounts with history of NSF's, fraud, etc.....

4) A message is sent back to the consumer saying the transaction has been approved or declined. (A dec may not mean that the funds are not there...it may simply mean that the bank account holder is a bad accountant and has a history of NSF's, in which case the software deems the transaction too risky and declines it.)

5) The merchant is notified that they have a new order....merchant deals with order accordingly.

6) All transactions from that day are sent via ACH to the Federal Reserve.

7) Within 48 hours (ususally 24) the processor is notified of any declined transactions. The processor notifies merchants and makes settlement adjustments.

8) The merchant is settled. (In cases of 24 hour settlement like we offer with PSeCheck, we float the money to the merchant, assuming the account holder is honest based on previously mentioned scrubbing techniques.)

The stuff talked about by the Senate does not affect us in any direct way. However, indirectly, people will become better accountants because of the absence of that float period. This is a positive situation for us because people will be more likely to check their funds before paying by check online. (Most people think the money is being debited immediately online and therefore the NSF level online is well below the brick-and-mortar level anyway)

Cheers
James

10-08-2003, 11:38 AM
jacker Confirmed User Join Date: Oct 2003 Location: Montreal, Canada Posts: 215	Online checking works like this: 1) The consumer enters their info from the bottom of their check (or from wherever) onto the payment page. They also enter an ID# in most cases (drivers license, military ID, or SSN) 2) The banking numbers are verified with a positive database to ensure the numbers are valid, then matched against the given ID# to ensure that the individual with the bank account is the individual on the ID. 3) Once the bank account has been deemed valid, the numbers are checked against a negative database of accounts with history of NSF's, fraud, etc..... 4) A message is sent back to the consumer saying the transaction has been approved or declined. (A dec may not mean that the funds are not there...it may simply mean that the bank account holder is a bad accountant and has a history of NSF's, in which case the software deems the transaction too risky and declines it.) 5) The merchant is notified that they have a new order....merchant deals with order accordingly. 6) All transactions from that day are sent via ACH to the Federal Reserve. 7) Within 48 hours (ususally 24) the processor is notified of any declined transactions. The processor notifies merchants and makes settlement adjustments. 8) The merchant is settled. (In cases of 24 hour settlement like we offer with PSeCheck, we float the money to the merchant, assuming the account holder is honest based on previously mentioned scrubbing techniques.) The stuff talked about by the Senate does not affect us in any direct way. However, indirectly, people will become better accountants because of the absence of that float period. This is a positive situation for us because people will be more likely to check their funds before paying by check online. (Most people think the money is being debited immediately online and therefore the NSF level online is well below the brick-and-mortar level anyway) Cheers James __________________ James Acker PaySystems Corporation 1-866-699-9021 x2109 [email protected] icq: 60019103