A CLOSER LOOK
Solutions for you
Check 21 transactions are governed by check laws and the Uniform Commercial Code rather than ACH rules and regulations set by the ACH governing body, NACHA. If your business struggles with the ACH ratios for returns and revokes, Remotely Created Checks are a good option for you.
You control your settlements. Funds can be settled directly to your bank account the next day. No hold times or reserves required. Alternatively, ACHQ can handle settlement and clearing. The only transaction your business bank sees is the cleared funds settled to your account.
ACH rules require revoked transactions (chargebacks) to remain below 0.5% and returns under 15%. Check 21 does not have this limitation, giving you greater flexibility on both revokes and returns.
Both ACH & Check 21 transactions are accepted by large US banks. Check 21 expands your coverage to include transactions from credit unions, savings & loans, small banks, brokerages, and checks drawn on credit card accounts.
Check 21 allows more characters to be used on the descriptor than ACH transactions. Details of a Check 21 transaction appear on consumers’ bank statements in the same place as a paper-check transactions. This helps consumers to easily remember the transaction, decreasing risk of revokes.