Check One, Two
Most companies include a way to guarantee a check is good. For instance, LML offers its clients three "recovery options." The most comprehensive, called "assured payment," pits full responsibility for the check on LML, the least comprehensive pits it on the merchant, with a cost structure reflecting the level of responsibility handed off by the merchant. Similarly, Visa USA offers just plain conversion, which lets a retailer verify whether an account is open or closed. Verification with conversion allows the retailer the same, with the addition of knowing the likelihood of the check getting paid. Finally, guarantee with conversion allows the retailer to know whether or not there are sufficient funds to cover the amount of the check.
Save Time, Save Money
But electronic check systems distinguish themselves especially well as a means of reducing paperwork and reducing the lag between check acceptance and fund transfer. According to Visa USA, "In a paper-based environment, a check typically passes through six to 12 different pairs of hands before being settled. By eliminating the manual check handling process, check electronification can reduce a merchant's back office processing and fraud costs." Simply put, there's no depositing checks at the bank, and no paper checks to keep track of. Additionally, according to LML Payment Systems, using an electronic check system means reducing the amount of time it takes for the funds to show up in a merchant's account to less than two days.