How to Process Electronic Funds Transfers

Posted by Anonymous , 9/4/2007 Tags:ProcessElectronicFundsTransfers
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How to Process Electronic Funds Transfers

Introduction

An electronic funds transfer is the term used when your financial institution is instructed electronically to transfer funds. This type of payment has been popular with fitness clubs, landlords and other organizations that must collect a recurring payment from their clients.

Instructions

Difficulty: Moderately Easy

Steps

1

Step One

Install automated clearing house software on your computer. If your industry has software available that is tailored to your business, the chances are good that one of them will include a program integrated with automated clearing house software. There are also automated clearing house software programs that can be used strictly for processing electronic funds transfers. PC Charge Pro is a Windows-based software program that is easy to install.
2

Step Two

Establish an electronic payment system with your bank. Most banks are set up to receive and send electronic funds transfer requests. Your bank may have certain guidelines for delivering an electronic funds transfer request.
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Step Three

Get a signed authorization agreement from your customers if you will be processing electronic funds transfers on a recurring basis. Any financial institution may request to see a copy of this document at any time. Having this on file protects you as the processor from clients who no longer want their payments processed by electronic funds transfers.
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Step Four

Convert paper checks to electronic funds transfers using a point-of-purchase program. The program scans the information from the paper check and immediately sends a request for the transfer of funds. The signature on the check is the only signature you need to process this type of payment.
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