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  1. #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

  2. #2
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    Quote Originally Posted by ryan $ View Post
    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
    How is this any safer than a daily ACH. Merchant can cancel the checks just as easily?

  3. #3
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    Digital fraud you anonymous ****

  4. #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!

  5. #5
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    Quote Originally Posted by abfunders View Post
    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!
    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.

  6. #6
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    Quote Originally Posted by ryan $ View Post
    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.
    People collect daily payments via debit card?

  7. #7
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    Quote Originally Posted by SFC View Post
    People collect daily payments via debit card?
    You can Fund and Collect Via the Business Debit Card. There are Pluses and Minuses.

  8. #8
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    I've seen it. Usually to hide the agreement from other positions who take stacking clauses seriously.

  9. #9
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    Quote Originally Posted by ryan $ View Post
    You can Fund and Collect Via the Business Debit Card. There are Pluses and Minuses.
    I get the plusses. What are the minuses?

  10. #10
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    Quote Originally Posted by SFC View Post
    I get the plusses. What are the minuses?
    Pluses for Debit Card - Minuses for Check Draw. Minuses would be chargeback happening a month later

  11. #11
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    if it was up to me i'd ban you just based of your avatar

  12. #12
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    Quote Originally Posted by Don Dolla View Post
    if it was up to me i'd ban you just based of your avatar
    Why? You believe in a government having absolute power over the people? Move to North Korea...

    Or Disagree with Anonymous? Maybe you side with the Westboro Baptist Church? LMAO

    I stand by both meanings.

  13. #13
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    ....
    Last edited by swiftcloser; 01-28-2020 at 09:39 AM.

  14. #14
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    Quote Originally Posted by swiftcloser View Post
    Sorry I'm more curious about you pulling your PSF via Digital check, like check22. How has your success been? I pull some fees via standard check from the merchant myself, but these are real checks signed by the merchant, its not the best system but on merchants I know never had any issues.

    If i could pull large volume of ACH I would but the risk factor and the fact that merchant processing have gotten smart on their fees for high risk/volume processing has kept me from going full ACH, ACH is the easiest method for us by far, but thats not always an option. Give me your secrets lol.
    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.

  15. #15
    "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

  16. #16
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    Quote Originally Posted by ryan $ View Post
    Why? You believe in a government having absolute power over the people? Move to North Korea...

    Or Disagree with Anonymous? Maybe you side with the Westboro Baptist Church? LMAO

    I stand by both meanings.

    You work in a world where security of financial and personal information is paramount and your avatar is not representative of that. Thats a lack of integrity and or intelligence.

  17. #17
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    Quote Originally Posted by Don Dolla View Post
    You work in a world where security of financial and personal information is paramount and your avatar is not representative of that. Thats a lack of integrity and or intelligence.
    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

  18. #18
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    Quote Originally Posted by ryan $ View Post
    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
    As long as you aren't hacking me, I love the Avatar. Honestly, everyone should be more concerned about their data. World is crazy.

  19. #19
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    Quote Originally Posted by Don Dolla View Post
    You work in a world where security of financial and personal information is paramount and your avatar is not representative of that. Thats a lack of integrity and or intelligence.

    Definitely agree with securing financial and personal information but that is NOT what happens in this industry. Data backdoored all day every day. Noone knows who has access to what. Pretty rediculous. Like Ryan$, ll merchants should be ANONYMOUS.

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