An Internet check transaction is similar to a paper check transaction except that Internet checks are processed using
the system banks use for electronic deposits and payments. This requires that you enter the full numbers imprinted on
the bottom of your paper check (also known as the MICR numbers, which stands for magnetic ink character recognition).
TeleCheck converts this information into an electronic item and then processes it through the Automated Clearing House
(ACH).
What is the Automated Clearing House?
The ACH Network has been in operation for more than 25 years and has proven to be a secure and economical payment
system, processing billions of commercial transactions such as payroll deposits, insurance premiums and utility bill
payments. Check transactions over the Internet are a natural extension of the capabilities of ACH.
How is the money being moved?
Once your account information reaches TeleCheck, it is converted into a standard Automated Clearing House electronic
funds transfer item, which is the same technology the ACH Network used to transfer more than $16.4 trillion in electronic
payments in 1998.
Are the funds immediately debited from my account?
No. Consumers who authorize Internet check transactions will still enjoy the paper check benefit of the float. That’s
because the check is processed through the bank’s electronic systems in about the same amount of time as a paper check.
How will an Internet check transaction appear on my bank statement?
A complete description of the transaction will be included in your bank statement. This description will include
most, if not all, of the following information: check number, merchant name, settlement date and check amount. This information
appears on your statement where other electronic payments (such as direct payroll deposits and ATM transactions) are
listed.
What happens if there is an error?
Consumers must provide notice of the dispute or error to their bank no later than 60 days after their bank sends
a statement on which the possible error is first reflected. The bank is then responsible for reviewing the dispute or
error.
Is this process regulated and safe for consumers?
Companies that process payments electronically (checks, credit cards, ATMs) must adhere to government-mandated guidelines.
The electronic process is governed under Regulation E, which governs all electronic processing, including ATM and credit
card transactions.
What happens if TeleCheck is unable to convert my check information into an electronic item?
This happens in a very small percentage of cases and for various reasons. When the conversion cannot be made, TeleCheck
prints a paper check draft with your account information and deposits it just like a regular check.
How is my check accepted over the Internet?
