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Checks By Phone
Increase Your Potential Customer
Base
Almost 75 million people either do not have a credit card or have
exceeded their limit. If you sell products or services over the phone or have an
active collections department, phone checks provide a convenient payment method for this
group of people.
What are Phone Checks?
Phone Checks are also known as Telechecks and Checks-By-Phone or
Fax. It is a payment method whereby the customer representative or collector can
obtain authorization over the phone from the customer to draft (debit) his/her account for
an agreed upon amount. Increase your marketing potential with this simple, effective
payment method.
An Established Legal Method of Payment
Telephone checks (pre-authorized drafts) are completely legal. These drafts are
created with the verbal consent of the account holder and are signed by the authorized
agent of the account holder, which can be the person or business that received the verbal
information about the account holder over the phone.
Paper drafts are established as a legal method of payment as provided in the
- Uniform Commercial code, Title 1, Section 1-201[39] and Title 3 sections
3-104, 3-403
- Code of Federal Regulations, Title 12, Chapter II, Part 210
- Regulation J, Federal Reserve Bank, Part 2, Sections 4A-201 to 4A-12.
- Also see Romani v. Harris, 255 Md. 389.
How it works
The process is similar to what many companies are already doing for
credit card customers.
- Telephone representatives ask the customer for the bank routing and
account numbers located at the bottom of the personal or business check in the same manner
that they would obtain information from a credit card customer.
- The information is recorded on a form and at the end of each day the form
is faxed to APS. APS then prints a draft on this person's checking account. A
signature is not necessary - only verbal authorization over the phone is required.
- APS mails the drafts to
you for endorsement and deposit like any
other check.
Cost
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