Product: Electric Check Processing Plus
Company: CrossCheck Inc.
A new product from check approval company CrossCheck Inc. fuses new technology with a time-tested service. The product, Electric Check Processing Plus, is a remote deposit capture (RDC) device connected to CrossCheck's collections service. In the event that a check fails to clear, agents at CrossCheck are electronically notified and can proceed from there.
"It's our internal collection product, so we actually will pursue collections for the merchant directly, and when the item is recovered we reimburse them," said Tiffany Lucas, Senior Vice President, Product Development for CrossCheck.
"It's a built-in service. It automatically allows the assignment to happen, so there aren't extra steps the merchant has to take. It's a seamless integration between two products."
Normally, a merchant would either face the hassle of commissioning an outside collections agency or, more perilously, pursue the chargeback alone, Lucas added.
"We don't just tell the merchant, 'Well, go ahead and pursue that on your own,' because there are so many regulations that they need to be aware of to make sure they're collecting legally," she said. "The solution is there for recovery when it's needed."
Lucas said CrossCheck also sells an "electronic guarantee" RDC device for merchants with high chargeback volumes, but that most RDC products do not provide a full defense against chargebacks.
While the technology expedites check processing by allowing merchants to send checks electronically, it is usually done by "batch processing" - meaning the checks are not sent in real time, but rather in bundles at the end of each business day. That delay means some bad checks can slip through at the POS.
Lucas said Electric Check Processing Plus is aimed at merchants who get a more moderate level of bounced checks, which might include anybody from retailers to medical outlets to auto dealerships.
"It could be [small businesses] or merchants who have a lot of repeat customers, so they know for the most part there's going to be ongoing business where the returns aren't necessarily going to be as high as somebody else might see," she said.
She said reimbursements from chargebacks are paid to CrossCheck and then doled out to its merchants, and that installment repayments of a chargeback would be allotted to a merchant as each payment comes in.
"A lot of companies are offering the remote deposit capture technology, but what they don't incorporate with it is the back-end solution for the merchant on recovering items," Lucas said. "We've pretty much been in business collecting items for over 25 years, so we have a lot of experience and history with how and when to handle collection that we incorporate with this product."
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