Back office check conversion is presented as a superior alternative to point-of-purchase check conversion. It allows processing of all checks at a single back office location rather than requiring individual scanners at each checkout lane. This reduces costs and complexity while streamlining depositing and accounting across multiple store locations. Checks are stamped with authorization at checkout and scanned daily in the back office, then funds are electronically deposited in the merchant's account within 48 hours while minimizing changes to customers' routines.

1. Back Office Conversion
Premier Back Office Electronic Payment Processing Solution

2. Point-of-Purchase Check
Conversion Limitations
Point-of-Purchase electronic check conversion is an older process than back
p
office conversion. Checkcare’s back office conversion has been designed to
replace it due to the following limitations of the point-of-purchase process:
NACHA’s Point of Purchase conversion does not:
Process all checks at a single point
Allow for consolidated accounting from multiple locations
Eliminate transportation costs for non-consumer checks
Keep check out times to a minimum
Reduce time consuming check handling processes
NACHA’s Point of Purchase requires:
Costly scanning equipment for each check out lane
Significant training of Store Personnel
Change in customers routine for paying by check
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3. The Back Office Conversion
Solution to POP conversion.
conversion
Back Office Conversion can do the following:
Replace an expensive imaging scanner at the Point of Sale with an
inexpensive rubber stamp
Convert more checks than allowed by NACHA’s POP (Point of Purchase)
NACHA s
Program, and still be in compliance with NACHA Rules
Greatly reduce the time it takes to convert all checks at the point of sale,
yet process checks electronically
et electronicall
Retain the check and authorization in such a manner that allows for easy
retrieval of both with one inquiry
Have a system that virtually eliminates the need to constantly train
employees for POS conversion
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4. Other Benefits of BOC
Eliminate the need for a scanner at every Register
Drastically reduce Transaction Fees
Accept all types of checks at the Point of Sale
ll
Keep check-out times to a minimum
Consolidate h dli of check it
C lid t handling f h k items
Greatly reduce the Personnel training required
Improve funds availability through the faster depositing of checks
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5. Point-of-sale requirements
1. Imprint or stamp the check
This imprint/stamp provides the authorization to
process the customers payment for their purchase
electronically.
This Authorization is the same type taken for all
generic EFT authorizations, the difference is this
Authorization takes place at point of sale, and uses
the back of the check instead of a separate piece of
paper.
2. Consumer Receipt
The same information is stamped or printed on the
sa es ece pt a d a ded
sales receipt and handed to the consumer for their
t e co su e o t e
notification and records.
Back of Check
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6. Endorsement stamp explained
pp
The Special Authorization Stamp can be
broken down into 3 sections
Authorization allows the check to be used as source
information for the purpose of obtaining the customers bank
account information from the MICR line to access the consumers
account. In essence we are not using the check as a check, but
as the source for information we need In the same section we
need.
are disclosing the type of transaction we intend to perform,
PPD for consumer accounts
CCD’s for Corporate accounts
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Paper Drafts for items we can not clear electronically
Notification notifies the consumer and obtains their
authorization for a return transaction fee if the transaction is
returned unpaid.
Abides the NACHA rules and Reg. E to describe the
manner in which the Company can be notified in the event the
Consumer wants to stop the transaction from being processed
processed.
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7. BOC Step by Step Process

8. Step by Step
1. The Consumer presents a completed
check to the Merchant, who stamps or
prints the endorsement stamp on the
i h d h
back of the check authorizing the ACH
transaction.
2. The Consumer signs the authorization for
conversion and returned check fee. The
check can also be processed through
Checkcare’s check verification system to
reduce bad check acceptance. The Merchant
can either print or stamp the authorization
verbiage onto the sales receipt and given to
the Consumer.
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9. Step by Step
3. At the end-of-day, the checks are scanned in
+ the back office using one of our high-speed
image scanners that easily interface with our
web hosted software. The checks are
transmitted and processed through the ACH
ACH.
ACH
4. The images of both sides of the source check
Network
with the authorization is captured at a s g e
t t e aut o at o s captu ed single
point and is processed as one of the following
transactions:
PPD for Consumer accounts
CCD s
CCD’s for Corporate accounts
Paper Drafts
Check 21 IRD’s for items we cannot clear
Non-consumer Items Consumer Items
electronically
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10. Step by Step
5. Checkcare electronically debits funds
from the customers account and deposits
funds in Merchants bank account. Funds are
available within 24 to 48 hours, alleviating a
trip to the bank.
Consumers
C
Merchants Bank
Bank
6.
6 Upload files into your in house accounts
receivable system.
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11. Summary
Requires one scanner p store, versus multiple scanners
q per , p
Process all checks electronically
Merchant does not need to sort consumer items from non-consumer
items
Minimize the change to consumers’ routine for paying by check
Requires less training that is required for POP
Consolidation of deposits for multiple company locations
Reduce Bank transaction return fees
Database verification reduces risk of accepting bad checks
NSF checks will be reported within three (3) business days
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12. Summary, Cont.
Submit h k
S b it checks and t
d transfer f d electronically
f funds l t i ll
Convert more checks than allowed by NACHA’s POP (Point-of-
Purchase) Program and still be in compliance with NACHA policies
24/7 access to retrieve check images and authorization via our
secure website
Real time
Real-time verification database (optional) reduces risk of accepting
bad checks and collection costs
Upload files to update your in-house accounts receivable system
No expensive software to buy.
Accounting for deposits made easier
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