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Electronic
Check Conversion Factoid By
John H. Beebe My
purpose for each Electronic Check Conversion Factoid article is to inform and
educate our industry about the real truth behind Electronic Check Conversion (ECC).
Knowing the truth and the facts arms you with the knowledge to close the sale,
and, more importantly, to increase your company’s revenue and residual income. Fiction:
Check transactions at points-of-sale have been rapidly declining for years due
to the onset of debit cards, check cards, smart cards, and newly issued
sub-prime credit cards. Fact:
The Federal Reserve has estimated that a minimum of 18 billion checks are
written to pay for goods and services at the point-of-sale every year in the
United States alone. Seventy-four percent of all non-cash transactions are made
by check. That means that all credit cards (Visa, MasterCard, American Express,
Discover, Diners, Carte Blanche, etc.), debit cards, smart cards, and check card
transactions combined represent only 26% of the market. Check writing has
continued to increase 2-3% every year and is expected to continue at this growth
rate for the next few years. Federal
Reserve Chairman Alan Greenspan put it all into perspective with the following
comment: “As we look forward, the Federal Reserve recognizes that whatever
innovations develop, the check will likely be with us for many years. Americans
still write about 68 billion checks per year, and the numbers are expected to
grow.” (source: Federal Reserve Board of Governors, April 2000) Sixty-eight
billion checks. How much of the 74%
do you want? Checks are an untapped market —almost three times the size of the
entire credit/debit/smart card industry combined. And Electronic Check
Conversion is your chance to capture your share of that market. If you think
about how much revenue is derived from just 26% of the market, then what is the
real potential for 74% of the market? Someone
is going to be the first to capture the market share in the check industry
—74%, just as someone will capture their share in the credit card industry
—26%. Will it be you and your company? Global eTelecom, CrossCheck, First
American Payments Systems, EFG, and others provide complete Electronic Check
Conversion (ECC) programs and private label programs compatible with a wide
variety of payment platforms and terminals. For further information on how to
sell or market ECC, please contact one of the above companies, or check The
Green Sheet’s Resource Guide. |
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copyright 2001 · The Green Sheet, Inc. |
