- What kinds of companies will Pre-Authorized Checking work for?
- Can this program work for me if the amount billed to the customer is different each month?
- How do you collect from me?
- How is my customer informed that the check has been submitted and cleared their account?
- What is the agreement between you, me, and my customers?
- Do you have access to my customer's or my account?
1. What kinds of companies will Pre-Authorized Checking work for?
The list is long, but here's an abbreviated list to give you an idea: doctors, dentists, private schools, trash pick-up companies, non-profit organizations, apartments, answering services, janitorial services, trade schools, newspapers, pager and voice mail services, public radio and television stations (for monthly donations), medical equipment stores, alumni associations, tote-the-note auto dealers, rent-to-own stores, lawn care services, marinas and private airports, maid services, music instrument rental stores, cable TV services, buying services... and many others. If you're not sure about your company, ask your automatic payments specialist to consult with you.
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2. Can this program work for me if the amount billed to the customer is different each month?
The program also works well in situations in which the amount owed by customers varies from month to month. The only difference in the program is that you would need to send out a monthly statement to your customers to let them know the amount to be drafted so they could make a note in their checkbook register.
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3. How do you collect from me?
It's very simple. We use the same technology to collect from you that you use to collect from your customers-we simply create a bank draft from your account for the amount of the service fees for a given month. Here is an example to make this absolutely clear. Let's say that you've got 50 customers on Pre-Authorized Checking. Let's say that your monthly invoice to each of these customers is $50 each. Remember, this is just an example, so I'm using round numbers so the math is easy. In your business, the numbers would probably be different. So 50 customers at $50 each would be a grand total of $2,500 collected. Now let's say that the service fee for these drafts was $2.00 each. That would mean that the service fees would total 50 customers times 2 dollars, or $100. We would hand you a stack of 50 checks that totaled $2,500; then, the next day, we would produce a draft, pre-authorized by you, for $100, the amount of the service fees. Your net take would then be $2,400. Not bad considering that you didn't have to send out invoices and you didn't have to wait for payments to come in. Are you starting to see how much time, money, and headache this service can offer you?
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4. How is my customer informed that the check has been submitted and cleared their account?
Your customer's checks are noted in their monthly bank statement. The check will not be numbered as "000" or will not be numbered at all. This way there will not be a conflict with their checkbook numbering system. The on-line bank account statement will refer to this transaction as a "Pre-authorized Check." They can then balance their checkbook as usual.
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5. What is the agreement between you, me, and my customers?
As a Cash Flow Solutions specialist, we print pre-authorized checks on behalf of your customer. Any contractual or cancellation clauses in the agreement will be settled upon prior to initiating your service. We will go over typical arrangements and make suggestions on a course of action. We will not be held liable for incorrect information supplied to the processing center for payments.
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6. Do you have access to my customer's or my account?
The PAC software is proprietary software developed to store information and print checks ONLY. The Processing Center does not have the ability to electronically access any bank account information. The system is a complex database and payment schedule program that queries information and print checks on demand.
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