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eft for windows payments lockbox What are Electronic
Fund Transfers or EFT’s? EFT’s process pre-authorized debits or credits from one
bank account to another within a 48 hour period to handle your company's payroll,
accounts receivable, accounts payable and/or NSF checks (RCK - returned checks).
This electronic computer based process requires the use of special licensed software
and a modem. All transactions are governed by the Federal Reserve Banking System.
For those of us familiar with ATM cards at gas station pumps and grocery store
check out lines, the concept of EFT’s continues to earn the confidence of consumers
and is therefore being applied in more and more settings. Over the past several
years, EFT’s have gained in popularity among businesses as well. Now any business,
regardless of size, can use EFT’s to conduct a variety of financial transactions.
What are the benefits of EFT’s? The benefits of EFT’s are many. For receivables,
benefits include prompt payment of your customer’s bills each month and early
notice of insufficient funds. You get your cash on time, every time. While there
is a small fee per transaction for this service, EFT’s eliminate the need to print,
process and send a monthly bill in many instances. This can save you as much as
$2.25 to $3.00 or more per customer. Thus, you could lower your costs for labor
to prepare statements as well as postage and the cost of paper used to print statements.
EFT’s also reduce late payments and the need to send out reminder notices. EFT’s
can actually increase your customer retention. This is most likely to occur in
businesses that bill the same amount on a month to month basis for ongoing services
such as pest control companies, newspapers, pool services, security companies
and the like. Having the fee automatically deducted from your customer’s checking
account increases the retention of those who might otherwise let the service lapse.
You can save hundreds, even thousands, of dollars on your billing and administrative
costs, dramatically improve your cash flow and eliminate many of your collection
hassles by using the EFT services. While you are saving money, your customers
benefit from EFT’s as well. With ETT Consulting, customers will no longer have
to worry about missing billing deadlines. Bills are paid even when your customers
are away from home. No more writing checks, no more postage, no more service charges
for checks and no more embarrassing second billing notices and late payments.
EFT is free to your customers and your customers will appreciate this value added
service. How does the EFT transfer process work? First you have your customers
sign a form that authorizes you to deduct their payment on a certain date. Your
customers provide you with a checking deposit slip to verify all account information.
Then you create the initial database. According to the billing cycle, the amount
of your customer’s bill is then automatically debited from their checking account
and deposited into your account. In the case of payroll, your account is debited
and your employee’s account is credited each pay period. Who inputs the information
into the computer? ETT Consulting provides the software and training to you so
you can download needed transaction information directly from your existing accounting
systems using the EFT for Windows ASCII format. This means no re-keying of data
which minimizes errors and expedites the process. Typically hundreds of transactions
can be downloaded and sent to ETT Consulting in a matter of minutes. How much
time is required to establish the initial EFT database? It only takes a few seconds
per customer to input name, bank account number, routing transit number of their
bank, the amount of the debit, and the due date. It’s that simple! Once the database
is established, the only component that changes each billing cycle is the due
date and perhaps the monthly charge. How safe are EFT’s? All EFT’s are governed
by the Federal Reserve Banking System. Only pre-authorized transactions are allowed
to be processed. This is strictly enforced by the Federal Reserve. Customers must
authorize all EFT debits from their checking account in writing. How will I know
that the information sent to ETT Consulting has been received and processed? The
ETT Consulting software prints several different reports for you. Both before
and after the data has been sent, you can print a report that documents your transaction.
ETT Consulting provides you with a status report the same day that verifies all
of the transaction information. You will know within 24 to 48 hours if any of
your customer transactions failed to process due to insufficient funds or incorrect
data entries. Most banks take as long as two or more weeks to notify businesses
of insufficient funds on checks being processed. Clearly ETT Consulting’s EFT
services offers your business a better alternative to processing checks for financial
transactions. How much will I pay for the EFT services from ETT Consulting? ETT
Consulting bases its transaction fees entirely on volume—the more EFT transactions,
the lower your fee. One EFT transaction consists of one debit and one credit of
the same dollar amount. The fees do NOT vary by the amount of the transaction.
You pay the same amount for a $5 transaction as you do for a $500,000 transaction.
In nearly all cases, this figure is less than the cost your business bears to
process receivables, payables and/or payroll transactions by checks. Managing
the accounts payable process can prove costly. The challenge you face is managing
your cash flow without missing payments or incurring late charges. Just think
of what you could accomplish if you were able to make your payments precisely
on the invoice due dateno sooner and no later. This is difficult to achieve if
you're still depending upon the postal service to meet your invoice deadlines.
Well, now you can depend upon a much more reliable process that will make your
payments electronically. And it's only available to select ETT Consulting customers.
Electronic Fund Transfers or EFT's are most commonly used for Direct Deposit of
Payroll and Accounts Receivable functions. They are safe, convenient and very
cost effective. As this form of automated bill payment has become increasingly
popular with both businesses and consumers, more and more uses for this technology
are being found. Accounts Payable is one of those. Applying the Accounts Payable
function using an EFT is quite simple. You debit your own account and credit your
vendors' account on the due date. While every bank has the capability of processing
an EFT, few provide the customer service needed to support an Accounts Payable
function. ETT Consulting has both the software and the service commitment to make
the Accounts Payable function a successful part of an overall automated bill payment
process. Unlike the banks, ETT Consulting serves its clients by: · providing EFT
software to give you control over this process · using the EFT for Windows ASCII
format that allows direct downloads from your existing AP system WITHOUT re-keying
of data · processing a single transaction per vendor for multiple invoices. ETT
Consulting will work with you to tailor a process that lets you take advantage
of EFT technology for your AP function. By doing so, you can maximize your short
term investments which will offset the cost of this service many times over