Check Payment Industry

Check Payment Industry

To process electronic checks, you will be interacting with these types of companies:

Two types of banks exist depending on the type of funds that they hold: merchants and customers.

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Acquiring (merchant) banks: These banks offer accounts to businesses that accept check payments. Before you can accept payments, you must have a merchant bank account from an acquiring bank. Acquiring banks collect fees for each transaction.

Your acquiring bank decides which payment processor you must use. You need to obtain the name of your processor from your bank before you start accepting customer orders.

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Receiving Depository Financial Institution (RDFI) or Receiving Bank: This is where consumers have their bank account and is similar to an issuing bank for credit cards. The RDFI or Receiving Bank receives an ACH transaction on behalf of the receiver (customer’s bank) from the ACH Network.

Payment Processors

A payment processor is an organization to which CyberSource sends all debit and credit requests. Your acquiring bank decides which payment processor you must use. You need this information before you start accepting customer orders. The Business Center supports the following electronic checks processors:

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Chase Paymentech Solutions

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CyberSource ACH Service

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RBS WorldPay Atlanta

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These processors support transactions in U.S. dollars for U.S. checking accounts for both personal and corporate checks. You do not need to open a check-enabled merchant bank account. Your processor can deposit funds directly into your existing bank account. Your processor will provide you with unique identification numbers for your account.