An estimated 80 million adults in the US have
no ability to buy online at websites that only accept credit cards,
a shortcoming MyECheck is tackling in a unique way by harnessing
remote data capture technology. At the heart of MyECheck’s strategy
is an ingenious yet simple adaptation of the paper
cheque.
no ability to buy online at websites that only accept credit cards,
a shortcoming MyECheck is tackling in a unique way by harnessing
remote data capture technology. At the heart of MyECheck’s strategy
is an ingenious yet simple adaptation of the paper
cheque.
Imaging technology has held great promise for
remote deposit capture and other bank branch-based services. Now
alternative US payment company MyECheck sees a new role for the
technology in processing online payments.
remote deposit capture and other bank branch-based services. Now
alternative US payment company MyECheck sees a new role for the
technology in processing online payments.
It might sound quite high-tech, but MyECheck’s
process is simple – and that’s its appeal. Online shoppers enter
bank account details, which the company uses to produce a paper
cheque. The cheques are scanned to produce digital images, and the
originals are destroyed.
process is simple – and that’s its appeal. Online shoppers enter
bank account details, which the company uses to produce a paper
cheque. The cheques are scanned to produce digital images, and the
originals are destroyed.
The scanned version of the cheque then triggers
an electronic transaction through First Regional Bancorp of Century
City, which routes the scanned cheque through the Federal Reserve’s
image network to paying banks with the funds clearing the same day
or overnight.
an electronic transaction through First Regional Bancorp of Century
City, which routes the scanned cheque through the Federal Reserve’s
image network to paying banks with the funds clearing the same day
or overnight.
The service has been available since September
2007, and has about 50 online merchants as clients. In recent
weeks, MyECheck announced that the software development company
Tele Tek Solutions and Xziex, a company that makes a device it
claims can produce drinking water from the humidity in the air, had
signed up for the service. It has processed approximately 600,000
transactions valued at over $16 million since its launch.
2007, and has about 50 online merchants as clients. In recent
weeks, MyECheck announced that the software development company
Tele Tek Solutions and Xziex, a company that makes a device it
claims can produce drinking water from the humidity in the air, had
signed up for the service. It has processed approximately 600,000
transactions valued at over $16 million since its launch.
New partners announced last quarter included
TransFirst, AE Checking, IP Commerce and National Cash Management
Systems, and new customers included the Allow Card of America,
Forever Living Products, Tonermax.com, Royal Settlement Services,
MySolitaire.com, Bowlingball.com, and Dazadi.com. Some of these
were in partnership with CardinalCommerce, who became a value-added
reseller of MyECheck in late 2007.
TransFirst, AE Checking, IP Commerce and National Cash Management
Systems, and new customers included the Allow Card of America,
Forever Living Products, Tonermax.com, Royal Settlement Services,
MySolitaire.com, Bowlingball.com, and Dazadi.com. Some of these
were in partnership with CardinalCommerce, who became a value-added
reseller of MyECheck in late 2007.
The Company also recently announced that it had
partnered with payments processor Secure Payment Systems (SPS) for
cheque authorisation and cheque guarantee services. The combined
MyECheck SPS solution enables MyECheck merchants to ship the same
day with confidence that they will be paid, even if their
customer’s cheque is dishonoured.
partnered with payments processor Secure Payment Systems (SPS) for
cheque authorisation and cheque guarantee services. The combined
MyECheck SPS solution enables MyECheck merchants to ship the same
day with confidence that they will be paid, even if their
customer’s cheque is dishonoured.
In addition to its basic payment service
MyECheck also markets authorisation, identity verification, and
deposit guarantee services. MyECheck’s financial data verification
services include Magnetic Ink Character Recognition line
validation, cheque-writer database queries and funds availability
verification.
MyECheck also markets authorisation, identity verification, and
deposit guarantee services. MyECheck’s financial data verification
services include Magnetic Ink Character Recognition line
validation, cheque-writer database queries and funds availability
verification.
Consumers who use MyECheck tend to be people
who do not have a credit card, dislike cards, or have had their
cards declined, so a customer-friendly approach is
imperative.
who do not have a credit card, dislike cards, or have had their
cards declined, so a customer-friendly approach is
imperative.
MyECheck competes in the alternative payments
market with a number of other emerging players, including
ModaSolutions of Canada, which offers a service that lets people
pay for online purchases with automated clearing house (ACH) debits
to their bank accounts.
market with a number of other emerging players, including
ModaSolutions of Canada, which offers a service that lets people
pay for online purchases with automated clearing house (ACH) debits
to their bank accounts.
It might seem counterintuitive to lean on
cheques in an era in which the cheque is being rapidly replaced by
debit and credit cards, but MyECheck capitalises on the millions of
Americans who either have no card-based payment product or who
choose to cling to cheques.
cheques in an era in which the cheque is being rapidly replaced by
debit and credit cards, but MyECheck capitalises on the millions of
Americans who either have no card-based payment product or who
choose to cling to cheques.
Cheques continue to be the leading non-cash
payment method in the US with the value of cheques processed
annually over $40 trillion. Up to half of all US adults either have
no credit card or have no available credit on their cards, meaning
that as many as 80 million US adults have no ability to buy online
at websites that only accept credit cards.
payment method in the US with the value of cheques processed
annually over $40 trillion. Up to half of all US adults either have
no credit card or have no available credit on their cards, meaning
that as many as 80 million US adults have no ability to buy online
at websites that only accept credit cards.
MyECheck claims that it provides access to more
US consumers than any other single payment method because it can
debit 100 percent of US current accounts, including business
accounts and accounts in which ACH processing does not work.
US consumers than any other single payment method because it can
debit 100 percent of US current accounts, including business
accounts and accounts in which ACH processing does not work.
The service also has some built-in advantages,
among them faster clearing and funds availability, a substantial
reduction in charge-backs and risk, and most importantly a much
lower cost than credit or debit cards.
among them faster clearing and funds availability, a substantial
reduction in charge-backs and risk, and most importantly a much
lower cost than credit or debit cards.
MyECheck transactions can be guaranteed,
eliminating the impact of fraud on merchants. Guaranteed
transactions are authorised and processed in real-time with
transaction success rates exceeding card and ACH eCheck success
rates.
eliminating the impact of fraud on merchants. Guaranteed
transactions are authorised and processed in real-time with
transaction success rates exceeding card and ACH eCheck success
rates.
It is much harder to reverse a payment made
with an image, and if a consumer reverses a legitimate transaction,
it is easier to collect after the fact because the Uniform
Commercial Code regulates the image-based payments.
with an image, and if a consumer reverses a legitimate transaction,
it is easier to collect after the fact because the Uniform
Commercial Code regulates the image-based payments.
Its recently released 2.0 version features
several enhancements, notably faster funds availability, stronger
fraud controls and simpler, more flexible integration options.
Merchants can now collect consumer payment information on their
website in their own format, and pass the data to MyECheck for
real-time fraud screening and remotely created cheque image
creation and clearing, with same day or next day availability of
funds.
several enhancements, notably faster funds availability, stronger
fraud controls and simpler, more flexible integration options.
Merchants can now collect consumer payment information on their
website in their own format, and pass the data to MyECheck for
real-time fraud screening and remotely created cheque image
creation and clearing, with same day or next day availability of
funds.
The new version also features increased
identity validation services, including access to billions of
public and private records used for both in-wallet and
out-of-wallet authentication of cheque writers to mitigate fraud
and prove cheque authorization.
identity validation services, including access to billions of
public and private records used for both in-wallet and
out-of-wallet authentication of cheque writers to mitigate fraud
and prove cheque authorization.
The service also is now available
internationally as well, as MyECheck has added bank transfer
payment services in more than 30 countries. The international
service allows MyECheck merchants to accept non-card associated
bank transfers in local currencies from the world’s largest
markets.
internationally as well, as MyECheck has added bank transfer
payment services in more than 30 countries. The international
service allows MyECheck merchants to accept non-card associated
bank transfers in local currencies from the world’s largest
markets.
The new services consist of two types of bank
transfer payments for most countries, a consumer push method, and a
direct debit method. The push method prevents consumer initiated
repudiation and charge-backs, eliminating most types of
international payments fraud. The direct debit method may be more
convenient for consumers to use, and offers both financial and
identity verification to substantially reduce fraud. With either
method, funds clear to the merchant’s account in about two to three
days.
transfer payments for most countries, a consumer push method, and a
direct debit method. The push method prevents consumer initiated
repudiation and charge-backs, eliminating most types of
international payments fraud. The direct debit method may be more
convenient for consumers to use, and offers both financial and
identity verification to substantially reduce fraud. With either
method, funds clear to the merchant’s account in about two to three
days.
MyECheck’s international gateway provides a
link between a merchant’s website and the firm’s international
payment network. International customers wishing to pay a MyECheck
merchant simply transfers funds in their home currency from their
bank account to a MyECheck partner bank account within their own
country. The system currently supports 21 currencies and will
perform foreign exchange if required.
link between a merchant’s website and the firm’s international
payment network. International customers wishing to pay a MyECheck
merchant simply transfers funds in their home currency from their
bank account to a MyECheck partner bank account within their own
country. The system currently supports 21 currencies and will
perform foreign exchange if required.
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