Tag Archive for Deluxe Financial Services

Why eChecks Are the New Way to Pay Your Business Bills

Originally posted on the Deluxe blog.

Deluxe Financial Services is the NAFCU Services Preferred Partner for Check Printing, Online Check Ordering, Check Fraud Prevention, and Member Loyalty Solutions.

You may have heard about the latest innovation in the world of electronic payments but do you really understand how they work and how they can benefit your business?

To answer these questions and provide a more in-depth look at eChecks and the electronic-payment space as a whole, Deluxe recently hosted a webinar featuring Chris Clausen, the company’s Director of Payments & Transactional Solutions.

His presentation, eChecks: The New Way to Pay Your Business Bills, made a number of interesting points regarding how eChecks provide businesses new opportunities for efficiency and cost savings, and how they offer capabilities other forms of electronic payments can’t match.

Here is a brief look at some of what was discussed and the questions answered:

What is an eCheck?

The first thing to remember about an eCheck is that it’s still a check. There is a physical version of a check that is created, but the recipient does so on their printer. Instead of emailing a check, a link is sent via email that allows the recipient to retrieve the check and print it.

Payment ImageThis is done as a security precaution so no check information is contained in an emailed message. Once the check is retrieved, payees print it and deposit it as they would a real check.

The eCheck that is printed has the same elements as a paper check: routing number, account number, signature, amount, payee, check number, etc. As with a paper check, an eCheck requires authorization but, instead of a signature, a pop-up box is used as the authorizing action.

What are the benefits of an eCheck?

Businesses like paper checks and continue to use them as a preferred method of handling transactions. eChecks are not an attempt to replace paper checks, but they do add to the benefits paper checks already offer and provide value that businesses may not realize they can now enjoy.

Paper checks are convenient, they’re secure, payers don’t need information from the payee and they include remittance data. These elements are all present in an eCheck, but eChecks bring even more additional value.

How? They save time and money.

Money imageThe cost of a paper check is not just the check itself. It’s the envelope, it’s the postage, it’s the time it takes to stuff the envelope. In terms of the amount of time saved, filling out an eCheck is roughly 70 percent faster than a paper check. For a business that writes checks in batches, this time saved increases exponentially because eChecks are compatible with accounting software and integrate seamlessly with it. You can export information directly from programs such as Quickbooks and use it to make payments in batches.

How do eChecks compare with other electronic payments?

A number of differences exist between eChecks and the other electronic payment methods in the marketplace. One of the most significant is that eChecks allow remittance information to be attached. Many other electronic payments are designed for consumer use, but businesses want to be able to share what they are paying for. An eCheck can include invoice information, info about goods and services and details about the products that were purchased.

A couple more key differences include:

- Recipients of eChecks do not have to create an account or share any information in order to cash them. They need only to print and deposit them as they normally would.

- Payment is immediate. It can be made from anywhere at any time. Other forms of electronic payment have delays ranging from 24 hours to one week. With the timestamp function on an eCheck, you can determine exactly when a payment is issued.

Are You Prepared for the Twists?

Originally posted on forwardbanker.com.

Guest post written by Scott P. Wallace, Vice President of Marketing, Deluxe Corporation.

Deluxe Financial Services is the NAFCU Services Preferred Partner for Check Printing, Online Check Ordering, Check Fraud Prevention, and Member Loyalty Solutions.

Traveling the Trip of Banking

Picture this: It’s 1950. A family of seven, plus their beloved pet dog, piles into a station wagon and sets out for a cross-country road trip with the radio blaring tunes as they cruise down the two-lane highway. There are no mobile phones to ask for directions and no GPS to keep them on track to their destination. It’s just mom, dad, five kids, Fido, a map book, and the open road.

Fast forward to today. It’s 2013. A family of four sets out on a road trip, but now with the aid of a GPS-enabled smartphone, apps to keep them abreast of road constructions and detours and a portable DVD player to keep the kids entertained.

We’re still taking road trips, but how we’re getting there and the tools we use are different.

And the same could be said in today’s financial environment. Consumers still rely on their financial institution, but how they receive communication and the tools they use vary. Read more

Fraud Insights

Originally posted on forwardbanker.com.

Guest post written by Scott P. Wallace, Vice President of Marketing, Deluxe Corporation.

Deluxe Financial Services is the NAFCU Services Preferred Partner for Check Printing, Online Check Ordering, Check Fraud Prevention, and Member Loyalty Solutions.

Banking margins are being squeezed and fraud continues to rise. This is not a good combination. To combat this, financial institutions want to stay aware of the trends and opportunities to mitigate losses to help improve bottom line profits.

A survey of both financial institutions and non-financial institutions compiled by the Federal Reserve Bank of Minneapolis provided some great insights into payments fraud.

What they found was fraud is a problem across all those surveyed no matter what their asset size, type of institution, or payment products offered. For financial institutions, the payment method most vulnerable to fraud was signature debit cards with over 83 percent experiencing an attempt. However, that’s only one of nine possible methods documented in the survey that fraudsters have tried to use. Read more

Are Your Members Banking Around?

Originally posted on forwardbanker.com.

Guest post written by Scott P. Wallace, Vice President of Marketing, Deluxe Corporation.

The 2014 Deluxe Exchange Conference offers crucial advice on the most pressing topics in financial services. Use code NASC14 to register »

The level of consumers who use multiple financial institutions is quite high, and the level of customers considering switching institutions also rose last year. This could prompt some financial institutions to review their policies through important financial decisions in order to be sure that customers not only have what they need, but also that they will lead with their strong points.

Consumers are sending many messages to financial institutions.

Switching: Customers who considered switching financial institutions in 2012 rose to more than 10 percent, which is slightly higher than the seven percent recorded the previous year, according to a report from Ernst & Young. One reason for the switches is the continued fee changes by some financial institutions, which upset approximately half of the customers. Read more

Helping Your Small Business Members

Originally posted on forwardbanker.com.

Guest post written by Nick Buri, Fraud & Payment Solutions Manager, Deluxe Corporation.

The 2014 Deluxe Exchange Conference offers crucial advice on the most pressing topics in financial services. Use code NASC14 to register »

”Life is 10 percent what happens to you and 90 percent how you respond to it.”

This famous quote from Lou Holtz, a college football coaching legend, applies to your role in helping your small business customers with the problem of fraud.

Fraudsters are increasingly targeting small businesses. Consider these statistics: (1) 95 percent of all VISA credit card data breaches involve small businesses, (2) 73 percent of small businesses were hit by a cyber attack in 2011.

Why are small businesses an attractive target? Read more