" ACH Support Guide "


Contents

ACH/Electronic checks overview

    The QuickCommerce system supports the processing of ACH/Electronic check transactions. You must have a QuickCommerce ACH processing account in order to accept ACH/Electronic checks with QuickCommerce.

    When you accept an ACH/Electronic check as a form of payment, you are allowing your customers to give you their checking account information and the authorization to debit their bank account directly as payment for goods or services. The customer simply provides their bank name, checking account number, and ABA Transit/Routing number. It is just as easy as providing a credit card as a form of payment. Using your QuickCommerce ACH account, the QuickCommerce system then debits your customer's checking account and transfers the funds first into your QuickCommerce ACH account, and then into your regular business checking account. The total time that it takes for the funds to move from your customer's checking account through the system and into your regular business checking account is approximately 5 business days (Approximately 2 days slower than credit card funds). The flow of funds in an ACH transaction is as follows:

    Customer provides their checking information and authorization to merchant, then..

    The funds are deposited (by ACH) into the merchant's QuickCommerce ACH account and the customer's checking account is debited by the QuickCommerce system within 48 hours, then..

    Once the funds have "cleared" successfully, the funds are transmitted (by ACH) into the merchant's regular checking account within 48 hours.

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What if the customer has "Insufficient Funds" (NSF)?

    The risks associated with accepting ACH/Electronic checks are no different than those associated with accepting credit cards. The funds from an ACH transaction remain in your QuickCommerce ACH account until the funds have cleared or until the transaction is "returned" or "charged back". The QuickCommerce system will report/inform a merchant of a returned transaction and the cause thereof usually within 2 to 3 days of the original transaction date. The two most common reasons a transaction is returned are Insufficient Funds (NSF) or Invalid Acct (the bank account number and routing number were typed incorrectly). Please note that a returned transaction will cause a returned item fee to the merchant, which is usually $3.00 per item. It is a good idea to charge a customer a returned check fee for returned transactions just like you would for returned checks. The typical fee to a customer for a returned check or ACH transaction is $15.00. You must disclose your returned check/returned ACH policy to your customer at the time of sale.

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What about ACH/Electronic check chargebacks?

    Remember also that a customer has basically the same rights to chargeback an ACH transaction as they do a credit card transaction. You may be required to provide proof of authorization or return the funds to the merchant. In the event of a chargeback, the customer's bank will chargeback the funds immediately and it is the burden of the merchant to seek recourse for the funds, as with credit card chargebacks. If your customer feels that they have been charged erroneously or without their authorization they may dispute this directly through their bank with a chargeback. You should encourage your customers to contact you if they have any problems or concerns with their order, and you should properly disclose your refund policy at the time of sale to avoid potential chargebacks. It is also a good idea to store receipts and other records or proof of service or delivery for transactions involving credit card or ACH payments. For merchants that conduct their business carefully and with adequate customer service, chargebacks should not be a problem, as most customers will be willing to resolve any disputes they have directly with the merchant.

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ACH/Electronic check transactions are NOT processed in real-time

    The ACH system is not set-up for real-time processing, involving immediate authorizations and instantaneous responses like the credit card networks are. An ACH transaction is not a guarantee of funds until the customer's bank account has been successfully debited, which takes at least 48 hours from the time of the transaction. Therefore, it is NOT advisable to accept ACH/Electronic checks as a form of payment for a product or service that you provide immediately at the time of sale. It IS, however, entirely appropriate as a form of payment for a product or service that you "deliver" or that is a recurring service. Many customers prefer to have their checking account debited for a monthly subscription service. Others may not have a credit card but want to purchase a product for delivery right from your web site or over the phone using their checking account. Indicating to the customer to "allow 2 to 3 weeks for delivery" would give you ample time to assure that the funds have cleared prior to shipment of goods.

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Processing ACH transactions with QuickCommerce

    If you have a QuickCommerce ACH account, the following QuickCommerce features are available to help you perform ACH transactions and to assist you in managing your ACH transaction activity.

    QuickCommerce Virtual Terminal - (it is expanded to allow ACH transactions)

    QuickCommerce WebLink - (it is expanded to allow ACH transactions)

    ACH Activity Menu - (the main ACH reporting menu)

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Using Virtual Terminal to process ACH transactions

    For the basics on using Virtual Terminal see the section entitled "QuickCommerce Virtual Terminal" above. Once your QuickCommerce account is configured for ACH acceptance, you will see an additional payment option call "Checking Account" in the list of available payment methods. Three additional fields will also be visible: "Bank Name", "Account Number" and "ABA Code". The blue help prompts on the Virtual Terminal window will assist you in providing the right information.

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Using QuickCommerce WebLink to accept ACH from your web site
    Complete details on how to link your web site to QuickCommerce WebLink are provided in the section entitled "QuickCommerce WebLink HTML Help". Please review the ACH overview for a complete understanding of when it is appropriate to accept ACH/Electronic checks from customers directly on your web site.

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Using the ACH Activity Menu
    The QuickCommerce system provides excellent reporting and ACH account management information to help you keep ahead in your business. The ACH Activity Menu is actually very much like an actual bank statement, where you see one statement for each period with a previous balance and ending balance for that period. However, unlike a bank statement, there are links to more details right from the ACH statement, and you can change the beginning and ending date of the statement in order to see more or less information according to your needs.

    A sample ACH Activity statement appears on the following page.

    Whenever there is activity with your account, it is reported immediately on your ACH statement. Your ACH statement is constantly being updated by the system with current information pertaining to your QuickCommerce ACH account. The following activities are reported on the ACH Activity statement:

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ACH Activity

    Submitted Items - (these are the items submitted to the system either by you from Virtual Terminal or from your web site through WebLink. The total is the amount that has been transferred from your customers' accounts into your QuickCommerce ACH account) You can click the link to view the individual transaction details of the submitted items.

    Returned Items - (such as insufficient funds and chargeback items) You can click the link to view the individual transaction details of the returned items.

    Funds transfer - (for funds that are being transferred from your QuickCommerce ACH account into your regular checking account)

    Bank fees - (for miscellaneous fees associated with your QuickCommerce ACH account, such as returned item fees)

    If you have questions about your ACH Activity statement and transactions please contact technical support using the "Merchant Support" feature on the Merchant Menu.

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How do I obtain a QuickCommerce ACH account?
    Click on "APPLY" or "INFO" above to get additional information or to obtain an account.

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