Introduction to check 21 processing

Check 21 processing is the name give to the check clearing of the new and fast paced 21 century. It is detailed under the 21st Century Act and was passed in the year 2003. It provides an alternative to ACH check processing. The businesses which are into internet and MOTO merchant services can be largely benefitted from such Check 21 processing accounts. It is much simpler and provides good resolve methods for business transactions and related needs. One of the good features that come under Check 21 Act is that it now enables you to scan the paper checks and then send their images so as to complete electronic transactions. This takes away all the manual work which was done previously for the depositing of paper checks. Rather it is a method that is new and advanced leaving the paper checks mode obsolete and a thing of past.

There are some more benefits of the Check 21 processing and Check 21 processing accounts which are given below for you to understand:

• The chargeback periods are shortened
• It reduces any potential risk of frauds
• Fast and efficient cash flow management
• Saves enough of time, energy and money
• Lesser restrictions when compared to the Automated Clearing House (ACH)
• Has an extended window so as to deposit check (for 4 extra hours)

Though these are a very few basic advantages of the Check 21 processing there are still another advantages that make you feel happy about it. The ones which are revealed to you when you have a Check 21 processing account for yourself. The change that has been brought by the Check 21 Act has made things easier for the owners of various businesses. Remote Deposit Capture is one of the systems that is purposeful and has shown great advantages. The Check 21 processing reduces errors and makes deposit process fast yet simple. Also it saves you from going to the bank every single time or at odd intervals which is money saving factor attached to this kind of processing.

There are a new and various set of regulations that you have to deal if you own a Check 21 account. These differences comprise the following things:

-Check 21 Regulations: NACHA Regulations:

• Check Submission time: Until 8pm Until 4pm
• Chargeback window: within 40 days within 60 days of awareness of fraudulence of awareness of fraudulence

These are kind of differences that ultimately show positive impact upon the cash flows. The increase in the check submission time allows you to have much more time to have the cash processed. The chargeback window which is limited prevents any possible frauds and fraudulent claims.

If you need to know more about the Check 21 account and Check 21 processing then you can consult someone who has a good knowledge about the high risk businesses like the online businesses and who can advice you about the things that you need to consider for your business transaction-wise.