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People are inherently adverse to change, particularly when confronted with a new payment method. It is quite common for residents to express concern over the safety of their account information and personal data. The electronic check system actually secures data far beyond the paper draft system. In fact, very private data is actually MUCH safer in an electronic system.
Q: How Can Automated payments be safer than paper drafts!
A: ACH automated payments are much safer then paper drafts because far fewer people are involved in the process and that fact alone reduces the risk of fraud. ACH Automated Payments remove eyes and hands from the checks. According to the Federal Reserve, Electronic Check Processing is a safer method of moving money than using a paper check. Several studies initiated by the Fed estimate that paper checks processed through the “normal” banking system are handled, on average, 6 times. This is six sets of hands and eyes on every check -- and six opportunities for errors or fraud. With an electronic process, the number of times the check is handled is cut to one (at the most) and the information and the money is moved electronically and automatically.
Q: What happens to my checks?
A: In the electronic check age, the paper draft check is eliminated altogether. Even the check writer and recipient are eliminated from the process. So, instead of 6 different people handling a single check transaction, the human element is removed. Not only is the process far more secure, it is a much more efficient process.
Q: What are Electronic checks?
A: Electronic checks are actually ACH debits.
Q: What is ACH?
A: ACH stands for Automated Clearing House (ACH) Network. The ACH Network is a highly reliable and efficient nationwide electronic funds transfer and clearing system.
Q: Who are the major players in The ACH Network?
A: The ACH Network serves 20,000 financial institutions, 3.5 million businesses, and 115 million individuals. Electronic payments of all kinds are used frequently by companies, institutions, government agencies and non-profit organizations as a safe, reliable and convenient way to conduct business.
Q: How accurate are direct payment debits. “Are you going to take more of my money than you should?” is a fairly common question.
A: “No!” Your landlord or management company cannot take more than the authorized amount! The “Authorization To Debit” Form protects each resident from excess debits and the property owner or manager from questions of impropriety. Owners and managers can only debit the account for the amount specified and signed for by the resident and confirmed by you.
Q: Who governs ACH transactions?
A: All ACH transactions are governed by Regulation “E” of the Consumer Protection Act. This is in addition to the protection consumers receive for paper checks. Under this regulation, Consumers have the right to contest any ACH transaction for up to ninety (90) days, just as they can now for paper. FYI, its 180 days for credit card transactions!
Stop-Payments and Eviction Notices
Q: Can I stop payment?
A: You, the resident, can stop the payment completely, but only by notifying the property owner or management in writing or by going into their bank. At no time can they change the dollar amount of the debit. (It is all or nothing.)
“But I like Paper Checks.”
Q: I like writing checks! Why should I change?
A: It’s common to be resistant to change. There persists a perception among many consumers that paper is safer than ‘those new fangled electronic things’. This is untrue. By using an electronic process, your information is actually safer and seen by many fewer people. (See above) For any resident that is still reluctant, the ACH system we offer does not exclude the traditional method of paper checks or force a change from your current banking relationships.
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