Introducing: Electronic Check Service - PowerPoint PPT Presentation

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Introducing: Electronic Check Service

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... not third-party provider Retailer gets one-stop solution for debit and credit cards, ... Solution Enables merchants to ... Business check acceptance and ... – PowerPoint PPT presentation

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Title: Introducing: Electronic Check Service


1
Introducing Electronic Check Service
Its Your Money. . . Why Wait For It?
  • Presented to

2
Agenda
  • Market overview and opportunities
  • Technology advances
  • NOVAs Electronic Check Service
  • Competitive Comparison
  • ECS Processing Solutions
  • Summary

3
The Era of the Electronic Check
  • Checks account for approximately half of all
    consumer expenditures in the U.S.
  • Estimated 36 billion checks written annually
  • Retailers search for more efficient means to
    process checks
  • Paper handling and fraud
  • Electronic check conversion offers an incredible
    opportunity for retailers
  • Checks remain the largest non-cash form of
    payment at the POS

4
The Case for Conversion
  • Extensive handling by financial institutions and
    retailers makes paper expensive
  • 6 to 12 touches per check, on average
  • Check fraud and collected funds are costly for
    retailers and other businesses
  • Electronic checks offer reduced handling and risk
  • Result in big savings to the bottom-line

5
Its Your Money.. Why Wait for It?

ECS Benefits to Retailers
  • Faster Access to Funds
  • Reduced Costs Labor
  • Single Depository Bank Relationship
  • Minimized Risk
  • Improved Reporting

6
Sample Cost Savings
  • Merchant Profile
  • Checks/Year 1,091,175
  • Number of Locations 1,795
  • Average Check Amt 59
  • Check Volume (sales) 25
  • ECS Cost Savings
  • Costs Savings Total 2,376,872
  • Cost Savings/Check 2.18
  • Cost Savings () 63.2

Data taken from actual merchant
7
Powerful Market Drivers
  • Electronic check market is proven
  • 1.3 billion processed in 2003
  • Visa estimates 14 billion paper checks still
    written at POS enormous opportunity
  • Check 21 Act provides legal recognition of
    electronic checks
  • Opens door for electronic checks

8
Technology Advances AccelerateMove to Electronic
Checks
  • Frequent MICR rejects and poor imaging quality
    hindered early acceptance of electronic checks
  • Recent advances in high-quality, image-capture
    technology have greatly increased the success
    rate for conversion at the POS
  • Quality images are essential for collection
  • Lower-cost storage and faster CPU speeds make it
    practical for retailers to store and access
    digital receipts

9
NOVA ECS Solution Offering
10
NOVAs Electronic Check Service
  • Innovative product that supports full portfolio
    of flexible solution and service level options
  • Not a one-size-fits-all solution
  • Provided in partnership with leading financial
    institutions
  • Extension of services from bank partner, not
    third-party provider
  • Retailer gets one-stop solution for debit and
    credit cards, electronic check, consolidated
    statements and even online reporting
  • Can by integrated into Analysis System
  • Extensive image storage and reporting capabilities

11
Only NOVA ECS.
  • Process any type of check
  • Consumer
  • Business / Corporate
  • Convenience
  • Presented any way
  • At the point of sale (POP)
  • Through the mail / drop box (ARC)
  • Through the appropriate rail
  • Direct DDA Access
  • ACH conversion
  • Check Replacement Document
  • With the proper risk mitigation / protection
  • Conversion with Guarantee
  • Conversion with Verification and Collections
  • Conversion with Verification
  • Conversion Only

12
Checks Supported with ECS
  • Consumer checks
  • Business Checks
  • Corporate Checks
  • Convenience Checks
  • Checks NOT Supported with ECS
  • Money orders
  • U.S. treasury checks
  • Cashiers checks
  • Federal Reserve checks
  • Government Checks
  • Payroll checks
  • Third-party checks
  • Travelers checks

13
Point of Purchase (POP) Solution
  • Enables merchants to convert consumer check
    payments received in a face-to-face environment
    into electronic transactions
  • Consumer present/Check present
  • Online real-time or batch delivery
  • Utilizes combination of Visas POS Check network,
    the ACH network and Check Replacement Documents
    (CRDs) for presenting and clearing
  • Real-time access to more than 35 million accounts
    representing 30 of DDAs nationwide with a
    potential for 90 of the DDAs in the U.S.

14
Accounts Receivable Conversion (ARC) Solution
  • ARC is used for check present/consumer absent
    transaction environments
  • receivable payments
  • mail order receivables
  • drop-box/lock-box environment
  • Customers are provided a notice explaining that
    checks will be processed electronically
  • Offer Consumer Opt Out Service with PC Solution
  • Utilizes the ACH network and Check Replacement
    Documents (CRDs) presenting and clearing
  • Online real-time or batch delivery of transactions

15
CHECK CLEARING RAILS
  • Direct DDA (VISA POS Check) Consumer checks
    drawn on Visa POS participating banks are routed
    to their bank, ensuring that the funds are
    available. This reduces the risk typically
    associated with check acceptance. Real-time
    access to more than 35 million consumer accounts
    nationwide with access to over 30 of the DDAs in
    the U.S.
  • ACH Network Consumer checks drawn on
    non-participating banks are processed via ACH.
    The ACH network is a safe reliable system used by
    hundreds of thousands of companies for Direct
    Deposit of payroll and by the Federal government
    for benefits payments, such as Social Security.
    The ACH system is a closed, private network that
    is not accessible to the general public.
  • Check Replacement Documents Business, corporate
    and convenience checks are electronically
    captured and recreated as Check Replacement
    Documents. These CRDs run through the
    traditional banking system in accordance with the
    Check Clearing Act for the 21st Century, also
    known as Check 21 legislation.

16
Direct DDA Market Share August 05
Participating DDAs g Up to 10
g 10 to 19 g 20 to 29 g 30
WA
ME
MT
ND
MN
VT
OR
NH
MA
ID
NY
SD
WI
MI
WY
RI
PA
IA
NV
NE
CT
NJ
OH
IN
IL
UT
WV
DE
CO
CA
VA
KS
MO
KY
HI
DC
NC
TN
MD
OK
AZ
NM
SC
AR
AL
GA
MS
LA
TX
AK
FL
Source Visa Member DDA Market Share Data
17
Direct DDA Access Banks
Source Visa U.S.A. POS Check Service Production
Data August 2005
18
ECS Service Level Options
  • Conversion with Guarantee
  • Checks are converted into electronic transactions
    and all funds are guaranteed
  • All paperwork is eliminated no follow-up needed
    from merchants
  • The retailer assumes no risk for all qualified
    and approved transactions
  • Conversion with Verification
  • Checks are imaged and converted into electronic
    transactions
  • Routed for verification either through the
    participating Visa bank or through EnCircle for
    ACH submission
  • Retailer retains the risk of returned items for
    all transactions
  • Conversion with Verification and Collections
  • Offers all the advantages of conversion and
    verification, while eliminating the need for
    businesses to perform their own collection
    activity
  • Retailers retains the risk on returned items, but
    will have all monetary returned items
    automatically handled by EnCircle Collections
    after the first resubmission.

19
ECS Service Level Options (contd)
  • Conversion only
  • Checks are imaged and converted into electronic
    transactions, retailer performs own authorization
  • Retailer retains the risk of returned items for
    all transactions
  • ECS Custom Combination
  • Custom-designed risk programs are available,
    consisting of any combination of the above
    services, triggered by a predetermined dollar
    threshold.
  • Retailers retain the risk of loss on returned
    checks, depending upon the specific combination
    and dollar thresholds selected
  • NSF Service Fee Processing
  • All service levels except Conversion with
    Guarantee support the ability to electronically
    resubmit transactions that have been returned for
    non-sufficient funds, electronically collect an
    NSF service fee from the consumers account, and
    automatically fund the businesss account with
    these feeseliminating the labor and lengthy
    time-to-collection of manual systems.
  • NSF Service fee not available with ARC.

20
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21
Competitive Comparison
22
NOVA ECS The ONLY Flexible Solution Provider
Service
NOVA
Certegy
Telecheck
ü
ü
ü
ECS with Guarantee
ü
ECS with Verification
ü
ECS with Verification and Collections
All in one processing check/credit/debit
ü
Funding in 24-48 hours
ü
Consolidated reporting
ü
Business check acceptance and conversion
ü
All at a Competitive Price!
23
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24
ECS Processing Solutions
25
ECS Solution Options
  • Terminal/imaging solutions
  • VeriFone Omni 3730LE, 3750 3750 IP
  • VeriFone Omni 3200, 3210, 3200SE 3210SE
  • Hypercom T7Plus, T7PT T77T
  • Nurit 2085, 8320 8320IP
  • RDM 6000i Imager
  • PC-based software solutions
  • viaWARP with Magtek Imager/MSR
  • Integrated POS solutions
  • IBM imager IBM ACE software
  • Epson imager
  • VAR interface solutions

26
ECS Image Management Solutions
  • POS Image Capture
  • Image Batch Archival, Retrieval and Reporting
  • Remote batch submission timing
  • Local batch capture option
  • Participating and Non-Participating Items
  • Retrieval with reported transaction data

27
EnQuire - Items Reporting
Return Detail Store, MICR data, lane, status,
ACH date, tracking, ACH history
Return QueriesLook for patterns of specific
checks, export to spreadsheet or database and get
data ready for collections
ImagesStored securely on Payment Archive
28
Questions Answers
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