Tel.:
1-800-736-6644Intl.:
1-775-328-0210Fax.:
1-775-348-9427
| Services: | Check21 (RCC) | |||||||||||||||||||||||
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Overview Approximately 42 billion checks are written in the United States each year and financial institutions are embracing check imaging as a way to reduce transportation and processing costs and to reduce fraud risks associated with physically processing paper checks. Recently approved legislation will simplify the way in which check clearing is handled, replacing a cumbersome and expensive system with a simpler and less expensive approach. The Check Clearing for the 21st Century Act, formally known in the House as HR 5414 and informally known as Check21, was written to allow banks to easily exchange checks electronically. Other objectives of the act include encouraging innovation in the check collection system and improving the overall efficiency of the nation's payments system. History Until recently, the law required banks to physically present and return original checks. After a customer deposited a check with his or her bank, the bank typically transported the check from where it was deposited to a central operations center. The check was then sent to a clearinghouse before it was ultimately delivered to the bank on which it was drawn for payment. During each step of this process, the check had to be physically shipped to its destination. What Is RCC? RCC stands for remotely created check. Remotely created checks provide merchants who sell their products or services over the phone or Internet a safe and reliable way to take consumers check information and process it just like a personal check. Automated Electronic Checking's RCC image service is the world's first Check 21 solution for remote checking transactions.
RCC Image Creation and Clearing RCC items are processed entirely in a Check 21 environment and do not utilize the ACH network. When processing an RCC, X9.37 files are electronically created from the customer check data you send to our system. All other "e-check" solutions are Automated Clearing House (ACH) transactions. RCC = Paper Check = Safer RCC created items, (electronic RCC's), are governed by Check 21 laws and Uniform Commercial Code (UCC state law). These laws are much more favorable to the merchant than the NACHA laws that govern ACH transactions. RCC items also typically produce fewer chargebacks. Simplified regulation equals easier compliance equals reduced costs. RCC reaches more Customers RCC provides access to more US consumers because it can debit 99.9% of US checking accounts - even business accounts and accounts where ACH does not work! This includes accounts at many Credit Unions, S&Ls, small banks, brokerage accounts, business accounts and credit card check accounts. In fact, RCC provides you with access to more customers than any other single payment method. RCC vs. ACH appearance on a Consumer's bank statement RCC transactions appear on the consumer's online statement as a physical check. The payee field allows the merchant up to 40 characters to describe or name their product or service! ACH transactions provide only a line item on the consumer's bank statement consisting of 16 characters to describe the transaction and 10 characters for a customer service number. This can create consumer confusion, more customer service inquires and higher charge backs. |
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