Copyright © 2005 EFT Network, Inc. All Rights Reserved.

Electronic Check Processing and Deposit

Accounts Receivable Conversion (ARC) / Check 21 Solution

Increase efficiency by alleviating time consuming processes

Modify antiquated filing systems

Quicker access to receivables

Consolidation of accounting for multiple locations

Business Challenges

Checks deposited faster Sale tool for reselling As part of a front-end RCK System for potential clients Drastically reduces transaction fees

Business Opportunities

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There are an estimated 14 billion check remittances each year1

“Win-Win" innovation. Consumers have more protections and receive more information than when their checks are processed in a traditional manner, and businesses and financial institution can collect checks more cost effectively

Introduced in April 2002, ARC transactions totaled 24 million equaling $4.71 billion1

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Almost 5% of all transactions processed through the ACH Network in 2002 were ARC transactions

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18,982,484 ARC transactions in 1st Qtr 2003, a 152.45% increase over 4th

Qtr 20022

1 Source: Global Concepts 2002 – The Future of Accounts Receivable Conversion by David Stewart.2 Source: NACHA – The Electronic Payments Association.

Industry Facts

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Understanding Check 21

What is Check 21?

- Check 21 provides a Retailer/Merchant or Biller with the opportunity to convert any type of paper check, for purposes of transiting it electronically, where it may re-emerge in the bank clearing system as the legal equivalent of the original check through a substitute check document known as an Image Replacement Document or IRD.

- It is applicable to ANY type of Check or instrument with a MICR* line

*Magnetic Ink Characters at bottom of every check

- It does not require permission or notification of any kind- IRD must meet certain formatting requirements

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Consumer

Consumer writes a check for $100

Consumer Check

Check is issued to Joey’s Pizzeria

Merchant

Merchant deposits $100 check into their Chase Bank account

Merchants Bank

CHASE

In return, FRB gives Chase $100

Citibank verifies if funds are available in Consumers account

Consumers Bank

CITIBANK

FRB routes check to Consumers account at Citibank for processing

Consumer receives check in statement

Funds are available and Citibank debits $100 from Consumers account to give to FRB

Chase routes check to FRB

FEDERAL RESERVE BANK (FRB)

Provides funding to Banks

Provides check transport system by planes, trains & trucks

Check Clearing Process

EFT Network’s ARC /

Check 21 Solution

ARC / Check 21 Solution

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EFT Network’s Accounts Receivable Conversion (ARC) / Check 21 Solution in

conjunction with our superior Image Replacement Document (IRD) technology, is a

premier single point of entry system that processes and deposits any type of paper

check received via U.S. Mail or at payment locations, deposited as electronic

transactions.

Processes thousands of checks per day with deposits credited into your bank account within 24 to 48 hours

Built on a flexible, web based infrastructure allowing easy integration to our various types of imaging scanners

Seamlessly capture accurate check images and MICR data information that automatically appears in the data entry fields

Manage your business transactions online, 24/7

Upload and import files into your data processing or accounts receivable system

Submit checks and transfer funds electronically anywhere, anytime, anyplace

24/7 access to retrieve check images and authorization via our secure website

Real-time verification database reduces risk of accepting bad checks and collection costs

Upload files to update your in-house accounts receivable system

Checks received through any remote or branch office/store locations can be deposited through one banking institution/account, simplifying bank reconciliation processes

Alleviate a trip to the Bank

No Bank deposit fees

Save space and money – No need to store paper checks or deposit slips

 

Key Features

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Technology Behind ARC / Check 21 Solution

Imaging technology using multiple types of check imagingscanners linked to a Web based system allows you toscan checks.

Digital Check TS - 350- Accepts 100 checks at a time- Processes 60-80 checks per minute, + or – 3,000 per day - Images both sides of checks in one pass

Digital-Check TS - 220e- Accepts 25 checks at at time- Processes 45 checks per minute, + or – 500 per day - Images both sides checks in one pass

Magtek Imager- Accepts 1 check at at time- Processes + or - 30 checks per day- Images both sides checks in two passes

 

Imaging Technology

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Digital Check TS - 350

Digital Check TS – 220e

Magtek Imager

EFT Web Hosted Software

Merchant receives checks for paymentof goods and services

 

Scan. Transmit. Process.

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1.1.

2.2. The checks are scanned using one ofEFT Network’s imaging scanners 

Digital Check TS - 350

Digital Check TS – 220e

Magtek Imager

Consumer ItemsNon-consumer Items

ACH Network

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The checks are scanned and processed via EFT Network’s high speed web hostedsoftware and transmitted through the ACH.

 

The EFT Network system automaticallydistinguishes and converts Consumeritems, processed as ACH items with Nonconsumer items including corporatechecks and payroll checks into Check 21IRDs.

3.3.

4.4.

+

Scan. Transmit. Process.

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EFT Network electronically debits funds

from the customers account and deposits

funds in Merchants bank account. Funds

are available within 24 to 48 hours,

alleviating a trip to the bank. 

5.5.

Consumers Bank Merchants Bank

Upload files into your in house accountsreceivable system.  

6.6.

Scan. Transmit. Process.

EFT Network Software

Go to your browser and access the

web-site

Log onto www.redeposit.com

Select Customer Login on the left navigation

Web Browser

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Enter your customer information all

in uppercase letters.- File Code- User Name- Password

Select OK

Customer Login

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Welcome Page

Here you can access:

- Transaction cut-off times- Notification of results status- Customer Survey & Daily

Messages

Select ARC System on the left hand screen to get started

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Main Menu

The Main Menu supplies you with all options available in our ARC System

Select Scan Checks to begin processing checks

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Process all checks electronically

Easy-to-use solution, requiring only a check scanner and internet access

Centralized Bank deposits for multiple company locations

Reduce Bank transaction return fees

Upload and import files to update your in-house accounts receivable system

Recover your returned items as quickly and cost - effectively as possible

NSF Checks will be reported within three (3) business days Merchant can redeposit immediately and keep all fees

Benefits for, YOU

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Accounts Receivable Conversion (ARC) / Check 21 Solution in conjunction withour superior Image Replacement Document (IRD) technology provides:

Easy-to-use solution, requiring only a check scanner and internet access

24/7 access to retrieve check images and authorization via our secure website

Concise, real time reporting available on-line

Real-time verification database reduces risk of accepting bad checks and collection

costs

No Bank deposit fees

Files to update your in-house accounts receivable system

Conclusion

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EFT Network, Inc. is Committed to Providing

Superior, Affordable,

ACH and Check Processing Solutions

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EFT Network, Inc.245 Saw Mill River Road

Hawthorn, NY 10532Tel: 914.747.3222Fax 914.747.7218

www.redeposit.com

Contact:Alex Bacon, Vice President of Sales & Marketing

E-mail: sales@redeposit.com

Getting Started