Electronic Point of Sale

• The customer’s check is read by the check reader which feeds the MICR data to the credit card terminal.
• The credit card terminal transmits the data to our verification system which uses positive and negative data and velocity parameters to determine whether to approve or disapprove a consumer check.
• Once approved a receipt is printed by the printer.
• The check (does not have to be filled out or signed) is stamped “ACH processed” and kept by the Client.
• Each day we pick up the files from the verification company and process them through the ACH.
• Files picked up are processed through the ACH the next day and deposited into the Client’s bank account the following day. (Monday checks are deposited on Wednesday AM.)
• Client receives a report on all batch deposits daily. The batch deposit number matches the Client’s terminal batch numbers. The batch deposit number is also the bank deposit number under which the money is deposited into the Client’s account.
• Returned Checks – all returned checks that cannot be reprocessed (closed account, etc.) are immediately made known to the Client and the funds are reversed out of his account.
• NSF Checks – checks that are eligible to be reprocessed: there are two methods available for processing returns:

Method #1: Client picks up all returns in the CheckREP software and represents them through the system

Method #2: the EFT Network immediately reprocess the returned eligible items and the fees for the Client. We represent immediately for the face amount and then represent the fee amount when the face is collected.

Your customers must be informed of the fact that their checks will be electronically processed:

• Clients must prominently display an Electronic Check Policy sticker at each register to notify customer of policy.
• Customer must sign EFT authorization printout for check to be truncated.

• EFTN POS Truncation system is essentially a private label system. The EFT Network will enter into a contract with the Client (marketing or sales agency) and the Client will enter into a contract with their Client customers.
• Rocky Mountain Verification system is used – 12,000,000 name database of positive and negative check writers
• Verification system includes velocity parameters.
• Client is paid in 24 – 48 hours with a 4PM EST cutoff.
• Standard terminal used will be the IVI CheckManager 3000.
• Client’s customers can use other terminals for truncation. These must be approved by EFTN. Programming for terminals other that the IVI 3000 = $ 150 per hour.
• Client’s agents will be responsible for setting up and programming CheckManager 3000 and/or other terminals used in the truncation process by downloading from Rocky Mountain.
• Client’s agents will be responsible to reprogram terminals that have been changed by outside parties – e.g. credit card companies reprogram the terminal. Terminal programming fees will apply.
• We use the Client as “keeper of the check” model. All checks will be collected by the Client and mailed to a designated EFTN storage site along with the receipt. The checks and receipts will be made available upon request by Client.
• The EFTN will submit to Client a set of guidelines and rules for proper check authorization and acceptance by the Client. These guidelines will vary if check guarantee is in place for the Client according to the check guarantee company’s standards.
• EFTN system features batch reporting. The Client can create a batch deposit and print out a receipt for each deposit.
• Each ACH deposit made to the Client’s bank by EFTN will match the batch out deposit numbers printed by the Client’s terminal. This will facilitate reconciliation.

• Check amounts are limited to $5000*
• Manually keyed transactions will not be processed electronically!
• Third-party checks (payroll checks, etc.) cannot be truncated and converted to an electronic check.

An escrow account may be necessary in some situations

• Reports are supplied to individual Clients through the EFTN CheckRep software or
• For those Clients who prefer not to have software the reports can be picked up by Client and/or Client’s agents to print and distribute to their customers.
• Daily Deposit Report – a summary by customer of all checks deposited by batch for the previous day. This report should match the customer’s batch deposit receipt printed by the
• CheckManager 3000 or other terminal
• Monthly Report – detail by Client of every check deposited and every return for the period. This can be downloaded by those customers that have the software and distributed by Client or their agents to the remaining Clients.
• Returns Report – Returns will be reported on a daily basis through the software for each and every return that comes back to EFTN from the RDFI. These will be in detail format, item by item.
• Client Master Report – a report by Client showing the activity of all of Client’s Client accounts.
• In the case that the EFTN is doing the representment for the Client: The automatic representment period is approximately 10-14 days. During this time EFTN will resubmit all qualifying returned checks. Resubmission will be performed a maximum of 2 times. The Client will be kept funded during the representment period for the return amount. Resubmissions for face amount and fee amount will be at the standard transaction price. All returns will also be at the standard return price described in the price list.
• In the case of the Client representing the items through the CheckREP software: the Client will receive the files on rejected items and can represent up to two times the NSF and Uncollected items. Once the face amounts are paid the Client can resubmit for the fee amount.
• All returned items that do not qualify for representment will be immediately reported to the customer and deducted from their account.
• In the case that guarantee is in effect for a Client the proper procedures will be instituted to recover the returned uncollected items from the guarantee company.
• Client will receive a monthly data file on all customer transactions for the previous month to produce invoices for their Clients.
• Client will supply its Clients with a help desk for POS equipment questions and help.
• EFT Network will invoice Client on or about the 1st of each month and debit the Client operating account 10 days later for the previous months activity.
• Client can debit their customers the monthly invoice amount using the CheckRep software on or about the 10th of each month.
• The EFT Network, Inc. will enter into a contract with Client for reselling the processing services of the EFT Network.
• Client will enter into a contract with each of their customers for POS Truncation – such contract to be approved by the EFT Network for proper content.
• The EFT Network will recommend specific guidelines for credit check and credit check approval to Client and will have 100% access to all credit check records and will have final approval for all Clients for processing.