Products and Services

Check-21 – Finally a quick and efficient way for Merchants to electronically process all of their paper checks!

What is Check-21 and how does it affect Merchants?

Check-21 is a federal law that enables banks to process checks electronically, which makes check processing faster and more efficient for the bank. Currently, banks must physically transport original paper checks from the bank where the checks are deposited to the bank that pays them--an inefficient and costly process. Check-21 allows financial institutions to substitute the original paper check with an image of the item thus electronically forwarding the check throughout the system instead of it being physically sent through. This greatly reduces the time it takes for the check to clear and/or be returned unpaid. To further increase efficiency merchants can implement the same type of technology right in their own location thus affording merchants the same efficiencies the banks have.

How does Check-21 make check processing more efficient for Merchants?

Instead of physically taking paper checks to the bank, merchants can electronically deposit all checks (consumer, business, government, money orders, cashier checks, and more) without leaving their location. Through our internet driven interface and a check imager merchants capture an image of the front and back of the check along with the associated payment information and transmit this information to their OWN bank. By processing checks electronically both settled and dishonored checks are posted quicker, and if you utilize our Consolidated Returns Program you can significantly reduce the return item fee that you're currently being charged by your bank.

How can NCMS Help?

Whether you process 10 or 10,000 checks a day, NCMS has a solution that will turn all your paper checks (including business checks) into cash without going to the bank, accessible from anywhere, at any time, and from any place. With intelligent decisioning, our system automatically distinguishes the best routing method for each check. Eligible checks are converted and processed as ACH items; while non-consumer items such as corporate checks are processed as Check 21 items. Once this determination is made the items are electronically submitted to the Federal Reserve for processing. Checks clear faster thus providing you better control over your cash flow.

Key Features

• Process ALL checks (consumer, business, cashier, money orders, Government, and more) electronically right from your location. No going to the bank!
• Multiple locations with multiple bank accounts are not a problem.
• Reduce risk of accepting and processing bad checks with our real-time Check Verification Services
• Deposit checks received through any remote or branch office/store locations through your CURRENT banking institution/account, simplifying bank reconciliation processes
• Significantly reduce your returned check fee charged by your bank by utilizing our Consolidated Returns Program.
• Access account 24/7 to retrieve check image and authorization via our secure website
• Upload and import payment files to update your in-house accounts receivable system Benefits for YOU

Benefits for YOU

• Improve cash flow—customer funds settle faster into your bank account
• Increase workflow efficiency--process all checks electronically.
• Increase collection ratio--recover your returned items more quickly
• Implement easily--single-point processing, easy-to-use solution; requires only a check scanner and internet access
• Eliminate trips to the bank eliminating courier fees, gas, and putting employees in dangerous situations.
• For web and catalog retail merchants it speeds up the fulfillment process because funds are available sooner and NSF checks/returns are recognized faster.
• Reduce bank transaction and assorted collection fees through our embedded Check Verification System
• Gain peace of mind--our solution is fully compliant with recently enacted Check-21 federal banking laws

Still Not Sure?

If you’re not sure whether this solution is the best one for your business or would like an online demonstration of how our software works, please fill out a Contact Request form, and an NCMS agent will contact you shortly. Or for immediate assistance, please contact us toll free at 877.370.9645.