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01-15-2020, 04:27 PM #1
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Industry is going crazy
I have a file that instead of a daily payment via ach, the company is drawing and cashing daily checks at a fixed amount (im assuming via digital checks)
Anyone see this?
Ive been pulling fees via digital checks instead of ach as its just easier and funds availability is faster.
But funding based on this is kind of crazy
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01-15-2020, 11:32 PM #2
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01-16-2020, 12:42 AM #3
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Digital fraud you anonymous ****
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01-16-2020, 11:18 AM #4
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I know a firm who facilitates these types of transactions. They also do this for PayDay loans. It's all done automatically with their software.
If done properly, it might be slightly more expensive, but due to the ACH rails that are not so forgiving on the bounces and one could lose their bank account, it might be worthwhile to "spread the risk" and do some of it this way. I don't think it's really check drafts, it's actually some other rails that doesn't cost $25/bounce like a standard bounced check costs.
Also, it might be a funder who doesn't have a bank that can do it, and the ACH people might need better credit, history, volume, etc etc etc.
Not so crazy, just more creativity, which is why the non-bank finance industry is so incredible!
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01-16-2020, 03:51 PM #5
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But why though? Setting up Credits and Debits via a Debit Card is soooooooooooo much easier. API exists on many platforms.
Check drafts just make no sense to me, at all. You can see in the bank account the cancelled checks, its actually checks, digitally printed with no signature.
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01-16-2020, 09:03 PM #6
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01-17-2020, 09:39 AM #7
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01-17-2020, 01:43 PM #8
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I've seen it. Usually to hide the agreement from other positions who take stacking clauses seriously.
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01-20-2020, 09:19 PM #9
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01-21-2020, 01:44 PM #10
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01-21-2020, 01:55 PM #11
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if it was up to me i'd ban you just based of your avatar
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01-21-2020, 02:53 PM #12
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01-21-2020, 03:04 PM #13
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....
Last edited by swiftcloser; 01-28-2020 at 09:39 AM.
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01-21-2020, 03:59 PM #14
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https://checkbook.io/ - You can Request a Check, they send the Merchant a Link to Verify Payment via Plaid, and Authorize. And the Funds are in your account Immediately.
SeamlessChex.com is another one. Bank Verification, Validate Funds, and they will cash the check for you and deposit funds instantly - Or you can print out a check for Mobile Deposit....Or Counter Deposit.
Both are fine. Less Fee's than ACH Services.... Just amend your ACH Fee Authorization to Include Digital Check (If you Plan on Counter or Mobile Depositing Checks) - But if your doing the full verification and sending merchant the link to complete via whichever system..... your probably fine without getting an ach authorization because they have built in authorization (even tho I get it anyway - on paper)Last edited by ryan $; 01-21-2020 at 04:01 PM.
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01-21-2020, 04:20 PM #15
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"Digital Checks" could be processed a number of different ways. Depends on the bank and/or vendor providing the services.
One that seems to be more common for MCA brokers is RDC (remote deposit capture). That sounds like what @ Ryan $ may be using.
Your digital check vendor will actually print valid paper checks via the information provided by the user. The information is typically taken from an authorization the merchant signed that included their banking details and those details gets entered into a virtual terminal of sorts.
From there the paper check is then scanned and directly deposited into your commercial bank account as if it were a paper check that you deposited yourself. Your bank will typically give you access to those funds the next business day. RDC items and the rules / regs are all governed by check law.
Positive = funds hit your account next business day.
Negative = if the check(s) are returned (insufficient funds, stop payment, chargeback, etc.) that is exposure you take with your commercial banking partner. Some banks will freeze your commercial bank account if you get too many of these.
It works for some and it's not for others, but I haven't heard of actual funders using it unless they can't get approved for an ACH account, especially someone collecting daily repayments. There could be other benefits, but I can't see them superseding what the ACH network offers.
ACH does have specific rules that pertain to their tolerance level of ACH Return percentages (15% overall - 3% administrative - .05% chargeback), but the return activity occurs at the ACH processors bank and not your commercial bank account. So unless you really **** the bed from a performance standpoint, you shouldn't have any worries processing your PSF fees and/or advance repayments via ACH.
Cheers!Vinny Lipari
Actum Processing
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01-21-2020, 06:06 PM #16
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01-22-2020, 09:28 AM #17
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That's actually not true. I would argue that my avatar stands for promoting responsible actions by said companies who handle personal and financial information.... and when companies violate that security and trust someone should do something.
Your never going to win an argument/debate with me. Your bringing a knife to a gunfight. "Don Dolla" Lmao
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01-23-2020, 01:14 PM #18
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01-23-2020, 01:15 PM #19
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