Why Businesses Are Turning to eChecks to Prevent Fraud
Many businesses today conduct financial transactions online. Whether they are conducting a minority or majority of financial transactions online, security is paramount. In addition to prioritizing security, most financial institutions would prefer or financial transactions to process and clear as quickly as possible. After all, the sooner a business gets paid, the sooner their profits increase. The use of paper checks is declining and yet, check fraud is on the rise. Businesses can achieve their security and fraud prevention goals by turning to eChecks.
eChecks Prevent Fraud By Removing Physical Touch Points
The average check passes through multiple touch points (the average is 6-7 touch points) before the finances clear and the money is in the account. Because of these touch points, there is a high risk of check fraud. Someone could easily alter or forge a paper check. There is a high chance you will lose your checkbook or a blank paper check, further exposing you to risk. eChecks issued by ValidCheck and secured with Positive Pay (one of the most important check fraud detection services available today) cut down significantly on touch points thus reducing the risk of fraud. Positive Pay is an automated fraud detection tool that utilizes three key components of fraud prevention: matching account number, check number, and dollar amount. With Positive Pay, a business transmits a file of issued checks daily to their bank (this can be automated). Positive Pay then verifies check cashing information against the business-provided list of issued checks to quickly verify the authenticity of a check.
eChecks Accelerates Revenue Deposits While Diminishing Fraud
Because ValidCheck’s eCheck’s are so secure, funds are able to clear immediately. If an eCheck is secured by Positive Pay, funds and ValidCheck can integrate with Quickbooks, making bookkeeping far easier and efficient. Because the eChecks are cross-checked against a list of issued checks, bank error is far reduced which keeps your finances accurately reconciled so that you can easily detect if something is awry, such as fraud.
Why ValidCheck’s eCheck’s Are the Most Secure eChecks
In addition to everything aforementioned, ValidCheck’s unique, highly sophisticated software never transmits bank account information between the issuer and issuee. Many eChecks or other digital transactions do transmit that information and, once it has been transmitted, it is exposed to risk of interception by criminals. Digital hackers can easily intercept that sensitive banking information and commit fraud. With ValidCheck, we email the issuee a secure link once an eCheck has been issued to them. The issuee can then easily and immediately download and print their eCheck or digitally deposit it. Checks are not a thing of the past, and unfortunately, that means check fraud is not either. Businesses that want to reduce their exposure to fraud while simultaneously streamlining bookkeeping and account reconciliation can leverage the power of ValidCheck’s security for optimal fraud protection.