Frequently Asked Questions
1) Is it legal to accept checks by phone, FAX or online?
It certainly is! You won’t be the first company using ChekFaxx™. Federal banking regulations and the Uniform Commercial Code permit this process of producing bank drafts. Top
2) What kind of computer and printer do I need to use ChekFaxx™?
An IBM PC compatible computer, using Windows Windows NT4.0, Windows 2000, Windows ME or Windows XP. It is recommended to use a Hewlett-Packard compatible laser printer to print the bank drafts. ChekFaxx™ has many users who use ink and bubble jet type printers. Top
3) Can I use ChekFaxx™ for Canadian customers?
At the present time Canada does have banking guidelines in place for processing bank drafts such as those produced by ChekFaxx™ who use the US Banking System. Top
4) Where do I get blank checks and how much are they?
You can order additional blank checks as you need them right from ChekFaxx, in quantities from 500 to several thousand at one time. An order of 500 checks (minimum order) costs just $45 or 9 cents a check. An order of 4000 would reduce the per-check cost to 6.25 cents each. (Several of our customers who sell online or on BBS boards charge a service fee of $2.00 to handle check transactions. The choice is yours, of course.) Prices do not include shipping. (Continental USA only) Top
5) Why are the checks in an 81/2 x 11 format?
The blank check consists of three parts. The upper third is the check itself. The bottom third is used as a Check Authorization Notice that you mail to your customer to inform them that a duplicate bank draft was created and deposited as authorized by them for this transaction. The middle third is a non-negotiable copy of the check , for your audit trail.. Keep this section as a record of the transaction. Top
6) Do I have to use special toner in my laser printer?
The MICR characters at the bottom of the check must be readable magnetically, even though much of the banking industry is now using optical scanners. All laser toners have magnetic qualities, but the level of magnetism is low. Laser toner with high magnetic qualities (called MICR toner) is readily available, although not at your local office supply store. You can try a work-around: Just before printing checks on your laser printer, increase the toner intensity to a high level. If your bank notifies you of a problem, then you will need to purchase MICR toner for your laser printer. ChekFaxx™ has MICR toner cartridges available for many popular laser printers. Top
7) What does MICR stand for?
MICR stands for Magnetic Ink Character Recognition. These are the numbers you see at the bottom of every check. Electronic scanners read the printed magnetic qualities of these numbers to process the check. Top
8) Is it safe to give account information over the telephone?
It is just as secure for your customers as mailing a check directly to you. You would have exactly the same information, wouldn’t you? Top
9) Are there any special laws I need to comply with in using ChekFaxx™?
YES! On January 1, 1996 a new law became effective from the Federal Trade Commission. Any telemarketing firm accepting check information over the telephone, FAX, or other electronic means, must have a verifiable procedure in place. Any of the following are acceptable procedures for producing customer bank drafts:
1. Receive written authorization from your customer by fax or mail.
2. Tape-record the authorization with your customer’s knowledge and approval.
3. Mail out written notice to your customer prior to depositing the check in your bank account. Notice must be in the mail prior to you making the deposit.
ChekFaxx™ complies with item #3. By simply mailing the Check Authorization Notice portion of the printed check to your customer prior to depositing it for collection, you are meeting the above requirement of the law. Top
10) How will accepting checks improve my sales?
Customers may not have a credit card or they have reached or exceeded their credit card limit. They may be saving the credit card funds for other needs. These factors will cause them to put off a purchasing decision. If you offer payment by check, there is one less obstacle to completing a sale. Top
11) Don’t customers prefer the convenience of paying by credit card?
In general, customers prefer not to incur debt. The only reason many people use a credit card for a telephone or online purchase is because that’s generally the only way they could! Top
12) Don’t customers “impulse buy” more often with credit cards then checks?
Not true! If the funds are available in their checking account, there’s no reason not to buy from you right now! Besides, you save on merchant discount fees on credit cards every time you accept a check. Top
13) Are online checks just as “valid” as checks received by mail?
Yes. Just treat an online check as you would a check you received by mail: hold the order until the check clears, call the bank and verify if it’s a large amount. Top
14) What if my business model is Business-to-Business vs. Business-to-Consumer? Would ChekFaxx™ work for me?
Business-to-business purchasers strongly prefer to pay by check! Check payments are more common in all business transactions than credit card payments. Top
15) I have always shipped C.O.D. Why would I switch to ChekFaxx™?
Because you will have no more returns because they were unpaid or undeliverable. Now you can be paid up front! Top