Electronic Receivables Collection


EFT is one of the fastest growing industries in the U.S. Trillions of dollars are safely transacted via EFT through the banking system each year. EFT is an electronic check and every person with a checking account or eligible savings account can be set up for automatic, on time payments – and every transaction can be easily traced through the electronic banking system. Introduction and implementation of Electronic Funds Transfer (EFT) is simple and easy. Loading the software takes about 20 minutes. Training someone to use it takes only about another 20 minutes. You can be up and ready to go in less than one hour. Billing takes only about one minute per 1000 customers to process each billing cycle.

We provide marketing ideas, letter formats, and literature resources that you can use to sell the EFT program to your customers. We will help format a plan to effectively communicate to your customers what EFT is, how it will benefit them, and how they can easily join the program.

EFT is the electronic transfer of funds from one bank account to another via modem in an encrypted format. Our software allows you to control the process from your office. The system can be networked with a number of users. Setup and processing are extremely easy to perform and you have total control of the account information and transaction process. No ones bank needs to be contacted as everything is processed through the Automated Clearing House, a part of the Federal Reserve. There are no fees charged to your customer by his bank for EFT.

EFC’s software not only gives you the ability to accept re-occurring payments but also gives you the capability to accept checks by phone or fax for one-time transactions. (Frequently used by receivables and collections departments to expedite receipt of funds)

Your customers no longer have to write out checks and mail them. They pre-arrange for you to debit their account every month on the due date.

You receive the payment automatically via the safety and security of the Federal Reserve’s Automated Clearing House (ACH). The software is designed so that only authorized personnel can set up and/or change the bank deposit information.

We also help you introduce EFT to your customers in a simple and positive way that effectively communicates the safety, ease and convenience of EFT.

According to Metropolitan Life Insurance, the biggest benefit they enjoy from ACH automated receivables is account retention. They see fewer policy cancellations among those who pay electronically. The reason for this is simple: Each time a customer sits down and has to write a check to make a payment, he must convince himself that he really wants to maintain his policy. Wereas when their accounts are debited automatically, however, policyholders are much less likely to think about eliminating their policy. Metlife sees 50% fewer policy cancellations among its ACH customers.

EFT is far less expensive than credit cards. Setup fees are minimal as compared to $1,500 to $2,000 for credit cards. Per transaction fees are only pennies per transaction as compared to credit cards which can be 1 1/2% to 4% per transaction. There are approximately 60 million people in the U.S. who do not have or use credit cards not counting those who have them but they are at their limit.

Runs under Windows 95, 98, 2000, XP and NT. The software resides in your facility so you have complete control at all times. You can add, delete, change dollar amounts, or put a customer on hold in a few seconds.

  • All reporting is in the software
  • Keeps a record of every transaction
  • All files are encrypted for safe transmission
  • The software has import/export capabilities to most accounting package
  • You will have a report on your returned items in 24-48 hours, instead of 10-14 days from your bank
  • You can automatically resubmit to collect on the returned items.
  • You can electronically submit a penalty fee through the software on returned items.


(A) Authorization: Your customers provide you with written authorization to allow you to electronically debit their accounts. We furnish this form to you at no charge. It can be used as a mailer, envelope stuffer with your invoices or you can post it on your web site to be downloaded and printed out by a customer. (See Sample) Once the form is filled out, the customer attaches a void check to it and sends it back to you. (If the customer forgets to attach a void check but sends in a check with this payment, you can photo copy the front of the check and staple it to the back of the authorization form and put both in his file). Since everything is processed through the Federal Reserve’s Automated Clearing House, neither your bank nor your customer’s bank need be contacted. There will not be a service charge to your customer by his/her bank for EFT transactions.

(B) Enter Data: Enter the customer’s check data into the software. This is a simple process and only has to be done once.

(C) Transmit: One day before the due date transmit the data to our processing center – just push a button on the software to transmit.


(D) Processing: Our processing center receives your data and processes encrypted files, via modem, through the Federal Reserve’s secure ACH electronic banking system. The software can also easily import comma delimited ASCII files into the system so that all your customer data can be imported from other programs. You literally import thousands of records in a matter of minutes – once imported you can simply transmit. The day before your bills are due to be collected from your customers you transmit the data to our processing center (this is automatic � just click on the transmit button) and we confirm receipt of the data back to you. By transmitting the day before the due date the funds (if available) will be taken out of your customer’s account exactly on the due date. The data is translated into a special NACHA format for ACH processing and forwarded through the ACH the electronic banking system.

(E) Payment: The money is deducted from your customer’s account by his/her bank on the due date and deposited into your account four business days from the transmittal date. All consumers regardless of whether they write paper checks or use EFT have a 60 day period from the effective date to contest the transaction with their bank. (Banks for obvious reasons have kept this a secret for years). It is important that you maintain the signed authorization (we furnish it) on file to dispute any reversal claims of this nature. Business to business transactions have only 3 days. The start and stop date feature makes it impossible to debit a customer past the lifetime of the collection cycle – for loan collection for example you enter the last day that a collection can be made and the software automatically stops on that date unless edited.


(F) Reporting: On the 4th business day, you will receive through the software a record of every unpaid item and the reason for nonpayment. You can immediately resubmit for payment. It is possible, but a very rare occurrence, that an NSF or other type of return can show up a few days after the 4 business day period used for funding. This is primarily due to small banks and credit unions who deal through larger banks not being as automated. In most cases we can reverse these types of items back as an untimely return.

The software maintains complete reports and history on all account data bases you set up in the system as well as a log of all files that you have transmitted. These can be viewed or printed out at your convenience.

(G) Billing: We will invoice you on or about the 1st of the month following activity and debit your account for submitted invoices on or about the 10th of the same month.


Now is the time to change your company over to EFT and be done with the “Check is in the mail” routine – collect your money on time, every time. At the speed of light!


  • You receive your payment on time, every time
  • No more $10 – $25 dollar NSF fees from your bank
  • Improves cash flow
  • EFT builds high customer retention rates
  • Your customers will love EFT – No more writing checks, buying stamps & rushing to the post office, etc.
  • No more bank runs
  • EFT reduces paperwork
  • No more invoices, postage stamps
  • No more 2nd and 3rd notices
  • Resubmit immediately on returns
  • Collect penalty fees electronically
  • No chance of lost or stolen checks
  • No bank fees to you
  • Eliminate lost, stolen and missing check problems
  • No one needs to contact your bank or your customers bank. Everything is done through the Federal Reserve’s (ACH)
  • Vacation & Illness do not effect receipt of funds
  • Cuts down on possibilities of identity theft

Electronic Funds Transfer vs Paper Drafts - Collect the money of close the sale now!

Accepting Checks Via Phone of Fax Using EFT as Opposed to Paper Drafts:

Collect the money or close the sale NOW. Don’t wait for the checks in the mail.
Save your client the expense, time and trouble of overnighting or mailing a check.
If you are now taking paper drafts over the phone, the conversion from paper drafts requires no changes in how your staff acquires the debtors banking information. We furnish a printed form or a Web Link. This procedure will even be simpler.

The benefits are:

1. Greater success rate on EFT transactions than with paper drafts by approximately 33%. Most banks process EFT transactions the first thing when they come in, in the morning and then process the paper transactions the rest of the day.

2. Return information (NSF or Account Closed, etc) in 2-4 days instead of 10-14 days means better service to your clients.

3. Auto upload to us in any format. Returned in the same format for auto posting.

4. No more $3.00 to $10.00 fees from your bank for returns.

5. Easy reconciliation because return information is sent back batch for batch. We do not mix information from different batches in our reports.

6. No more deposit slips to fill out.

7. No more paper checks to buy, print and file.

8. No more trips to the bank.

Accepting Payments and Donations via Electronic Funds Transfer - EFT for companies, charities, non-profits and churches

Many companies, charities, non-profit organizations and churches have found that accepting payments and donations via Electronic Funds Transfer (EFT) is not only less expensive, and time consuming but gives a much greater dollar return than conventional old ways of receiving money.

A national charity recently offered their donors the opportunity to EFT their monthly and quarterly gifts.

After one full year, fulfillment and renewal rates for EFT donors were excellent. For example, over 97% of the monthly and quarterly pledges made by EFT donors were fulfilled, whereas only 74% of donors who mailed in their donations, fulfilled their pledges. Almost $11,000 pledged was not mailed in by the donors.

In addition the renewal rate for EFT donors was 92%. Only 55% of the donors who elected not to use EFT renewed their pledges the following year. Furthermore, donors who participated in the EFT program, also supported other direct mail appeals during the year.

In Canada, 40% of Canadians use EFT to pay bills and contribute to charities. More than 80% of Europeans and over 95% of Japanese use EFT.

What is EFT and how does it work? EFT is reliable, confidential and effective electronic payment alternative/convenience to paper checks. When you use EFT, you authorize a company or charity to send a computer generated electronic notice to your bank authorizing them to electronically send a payment or donation of $xx to their bank. So instead of writing a check every month, your financial institution will automatically make the payment from your account on a pre-determined date for you. You will still have an accurate record of your contribution/payment for tax deductions because the payment will be shown on your monthly statement from your financial institution. The statement will indicate the payment date, amount and the name of the organization that received the payment. It’s that simple.

EFT saves companies and charities thousands of dollars every year in bulk mailings and fund raisers by collecting smaller dollars on a regular basis and thus giving them a more even, dependable cash flow all year. EFT also saves the company or charity time and money in opening mail, processing paper checks and going to the bank. EFT also saves money when it is used instead of a Credit Card because EFT only charges a few pennies per transaction rather than a percentage of the donation.

EFT is far safer than writing a check as an average of 7 people have access to all your banking information i.e., your Bank Name, your Bank’s ABA or routing number, your account number and your name and address. All EFT transactions are transferred via modem, directly from computer to computer in an encrypted format. With trillions of dollars being moved around the world every year without error.

The only information available to the recipient/charity is the same information that’s printed at the bottom of a check. No-one has access to your account balance or any other information about you that is maintained by your bank.

EFT can easily be stopped simply by sending a written request to the company or charity if you no longer wish to contribute.

All EFT transactions are covered by the Electronic Funds Transfer Act of 1978 and Regulation E.

Many charities and companies are quickly seeing the advantages of EFT and making this convenient and secure service available to their clients.

If you would like more information about Electronic Funds Transfer and how it can help your charity or company, phone the Electronic Funds Corporation at: 775-267-0067.

How EFT Works - learn more about the electronic movement of funds between banks

A check is merely a one-time written authorization/instruction to pay, directed to a depositors bank. An EFT Authorization also is a written authorization/instruction to pay but it is good for multiple transactions. It authorizes a depositors bank to move funds from his/her bank account to the bank account of the authorized merchant. This movement of funds is done between banks in an encrypted electronic format, hence the term Electronic Funds Transfer (EFT). The electronic movement of funds between banks is more convenient, efficient, secure, faster and far less costly to all involved than the handling of paper checks. The ACH moves trillions of dollars annually without error.

1.) Debit or credit originator (you) creates Accounts Receivable or Accounts Payable batch(es) of transactions and transmits them
to us via modem in an encrypted format.

2.) We accumulate thousands of transactions and transmit to the Federal Reserve Banks Automated Clearing House (ACH) division before 1 p.m. PST daily, except holidays.

3.) The Federal Reserve electronically transmits withdrawals or deposits to local banks general fund along with instructions as to which individual accounts the bank should debit or credit.

4.) Local bank’s computers check all transactions from ACH and debit or credit proper accounts. If debited accounts have sufficient funds the transaction is complete and the funds are sent back through the ACH to your bank. If an account does not have sufficient funds to cover the withdrawal by the ACH, an electronic Non- Sufficient Funds (NSF) notice is sent to us and we forward it on to you immediately. You have your monies or a notice of NSF usually within 24-48 hours.

EFT is simple to setup (appx. 20 minutes) to install the Win95/98/2000/XP/NT software and about another 10 minutes to learn to use it. No one’s bank needs to be contacted as everything is done through the ACH division of the Federal Reserve. We provide the authorization forms for you to give to your customers.

EFT eliminates the burden of your customer having to originate and move a piece of paper (check), and also eliminates the burden of the recipient/business having to process the piece of paper (check) when it is received. Instead, the customer benefits from the convenience of having the funds moved in a secure and timely manner based upon the standing written order/authorization. This authorization may be revoked at any time by a written notice from the customer to you, (and only you, not his bank) the recipient. EFT eliminates the danger of lost or stolen checks and identity theft.

Types of Businesses Who Use EFT - EFT benefits businesses, services, associations and organizations

Alarm & Security
Alumni Associations
Answering Services
Apartment Complexes
Appliance Rental
Boat Storage
Bottled Water
Cable TV
Child Care Centers
Collection Agencies
Dentists (Orthodontists)
Health Clubs
Home Owner Associations
Insurance Companies
Medical Equipment Rental
Mini Storage Facilities
Non-Profit Organizations
Office Furniture Rental
Pager Companies
Private Schools
Property Management
Public Radio & Television
Rent-to-Own Stores
Trash Pick-up Companies
Utility Companies
Waste Management