What are Remotely Created Checks (RCCs)?
Remotely created checks, sometimes called RCCs, are orders of payment that a payee issues via telephone, email, or online account.
They do not bear the customers' signatures like regular checks; instead, they are "Authorized by Drawer," meaning that they don't require signatures for authorization.
This blog post will explore the benefits of remotely created checks, how they can simplify your transactions, and how eCheck verification can help protect your business from fraud.
What is a Remotely Created Check?
A remotely created check is an electronic check authorized by the customer. RCCs are sometimes called eChecks, demand drafts, or telechecks.
The process for sending eChecks is as follows:
- Customers authorize businesses to generate remotely created checks by providing the required information, including the MICR code from a valid check and a routing number.
- Once the customer authorizes the business to create a remotely created check, the business can generate an electronic check and submit it for payment.
- The customer’s bank processes the payment and deducts the funds from the customer’s account, the same as they would with a traditional written and signed check.
RCCs offer several advantages for businesses and customers alike. In addition to being a convenient way to collect payments, they're also a faster way to get paid. With RCCs, you don't have to wait for a physical check to arrive in the mail or for a bank deposit to go through.
RCCs also eliminate the risk of lost or stolen checks. Finally, since they don't require customer signatures, they reduce the risk of forged checks.
3 Ways RCCs Help Your Business
Here are the top advantages of using remotely created checks to collect payments from your customers:
- Convenience: Remotely created checks are a convenient way to collect payments - without waiting for a physical check. This is a big deal if you have customers who live far away or make last-minute payments. You can also use eChecks to set up recurring payments. This allows you to automatically bill your customers without having to send invoices or reminders.
- Security: Remotely created checks eliminate the risk of lost or stolen checks. Additionally, eCheck verification secures your payments by verifying the customer’s bank account and routing number before payment. This can give you peace of mind, since you know your payments are secure and your business is safe from fraud.
- Speed: RCCs process quickly, which means you receive your payments faster. No more waiting weeks for payments or wondering when you'll get a check in the mail.
Remotely created checks offer many advantages for businesses, but it’s also important to understand their potential risks. Criminals can use eChecks to commit check fraud, and the law can hold companies liable if they do not take steps to verify the customer’s identity and bank account information.
Fortunately, there's an easy way to navigate those risks. For example, eCheck verification can help protect your business from fraud by verifying the customer’s bank account and routing number. By taking these precautions, you can ensure your payments are secure and your business is safe.
Want to Start Using Remotely Created Checks? SeamlessChex is Here for you!
Trust SeamlessChex for your remotely created checks. Because RCCs verify the funds in a payment account, you can rest assured knowing your payment will clear.
Ready to get started? Remotely created checks from Seamless Chex are easy to set up and use. We’ll provide you with everything you need to start accepting eChecks, including a free payment gateway and virtual terminal.
And our team of experts is always available to answer any questions you may have.
Contact a Seamless Chex representative today to start using RCCs in your business!