Sterling State Bank Offers Draft Conversion Plus ™
It takes money to make money. This adage certainly holds true for operating an accounts receivable department, so…
What is the best solution to improve your accounts receivable return on investment?
Reduce the amount of time it takes to process a check by implementing ARC (Accounts Receivable Conversion).
How does Accounts Receivable Conversion work and is it safe?
Accounts receivable conversion uses hardware and software to read checks and remittance stubs for payment and account information. The bank account information (MICR line and dollar amount on the check) is transmitted to the bank electronically for deposit via the ACH (Automated Clearing House) Network without the need to prepare a deposit slip, and customer account information (from remittance stub) is uploaded to the accounting system for posting without the need for data entry. As an added benefit, check and remittance stub Images are stored and readily available to customer service, via your internal LAN, for improved customer relations.
Image Capture
Images of check front and back are captured with a single pass through the scanner. High resolution and zoom make images easy to read, and a “Flip Image” function is available for checks fed through the scanner backward. Built in compression format allows images to be shared with any program.
Lost/Stolen Check Protection
Less handling of the paper check reduces the chances of it being lost or stolen. Also, once a check is scanned the paper copy is no longer required for deposit, so lost or stolen checks no longer equal lost or stolen revenue.
Modular
DCP’s modular design allows for easy upgrade and scalability.
NSF Check Reduction and Improved Collection
ARC by its very nature reduces NSF checks in the first place since electronic transactions are processed by banks before their paper check counterparts. NSF checks are discovered sooner due to faster turnaround (see Cash Flow Improved above). More electronic resubmissions are allowed than paper resubmissions. The combination of these three factors (faster receipt by bank, bank processing first, more opportunities to submit) has a significant positive impact on NSF check reduction and collection efforts. In addition, return fees on electronic NSF checks are generally lower than their paper counterparts.
Reduced Cost
Cost savings are realized in manpower, banking fees, check image capture and storage, etc. Personnel savings is the big winner. Accounts receivable data entry is all but eliminated. Double entry of deposit/payment information to both the bank and accounting system is completely eliminated. Payment information and check images are captured, stored and the checks sorted to multiple out pockets at a rate of up to 250 per minute (also generating savings for paper, copy machine and filing costs associated with a paper copy record system). And a powerful search engine makes finding check image and payment information fast and easy. Additionally, bank fees are generally less for electronic deposits than for physical deposits. All these add up to BIG SAVINGS!
Security
DCP enables internal security measures to restrict not only who has access to data, but the various functions that process the data.
Benefit A-B-C’s…
Accounts Receivable Integration
Back-end processing automatically executes the accounts receivable, general ledger or destination program’s language to tell it what to do with the data being transmitted from DCP. This feature makes integration seamless without requiring costly program customization.
Accuracy Improved
Checks processed manually are subject to data entry errors. DCP utilizes a secondary scan of MICR line data to double the impact automation already has on improved accuracy. As a result, there are fewer customer service issues and fewer administrative returns. A built-in deposit balancing function further insures accounting accuracy.
Banking Simplified
Eligible checks are electronically deposited without the need to prepare deposit slips or transport them to the bank. A deposit report is generated for ineligible checks (i.e. money orders) which eliminates the need for preparing a deposit slip for those items. Centralized clearing and consolidated returns are available at no extra cost.
Cash Flow Improved
Funds are available sooner since they don’t experience the delays caused by inter-bank mail delivery, thereby compounding the impact on positive cash flow. NSF checks are returned within 48 hours versus up to 15 days for paper checks to facilitate collection efforts.
Check 21 Compliant
Check 21 became effective October 28, 2004. This means checks that were physically deposited may be electronically deposited in image form. DCP is Check 21 compliant and is currently in operation in retail, corporate, and financial organizations throughout the United States.
Customer Service
Customer wait time is reduced and problem resolution expedited due to the immediate availability of check and corresponding remittance stub information to the Customer
Service Representative. Customer Service Representatives also have the ability to fax or email check images instantly to further satisfy customer needs.
In the near future, your receivables will be converted to an electronic form of payment, whether it is through ARC by your corporation, or through check truncation by your bank. Either way, the former (ARC) is the only way you have control.
Draft Conversion Plus™ (DCP) is your control factor. Fully compliant with both ARC and CTA rules, we can immediately enable you to realize the many benefits of ARC, and position you to maintain control of your receivables upon implementation of the CTA.
Where are my savings?
Manpower Costs Reduced:
- Less time needed to collect payment information and sort checks (automation can perform this function at hundreds documents (checks and remittance stubs) per minute.
- No data entry time is needed to post payments to the accounting system.
- Immediate check and remittance stub information for customer service.
- Less time needed to reconcile bank statements because automated deposit reporting eliminates time consuming clerical errors.
Operating Costs Reduced:
- Bank fees are often reduced.
- Copy machine supplies and storage space for check copies are freed up.
Revenue Increased:
- Funds are available sooner for operating expenses or deposit into interest bearing accounts.
- NSF checks are identified sooner to facilitate collection faster.
Compliance
Compliant with all NACHA guidelines for:
Electronic Check Conversion (ECC)
Check Clearing for the 21st Century Act (Check 21)
Specifications
Hardware Requirements:
- 85 MB hard drive space (system files)
- Windows 2000TM Server as controlled by My SQL (LAN environment)
- 17 kb per 2-sided check image (disk file storage space)
- 128 MB RAM
- CD ROM drive
- Modem
- Digital Check SCSI adapter kit
- Check Scanner
Software Requirements:
- Operating System: Windows 98TM, 2000, XP
- Email (for technical support purposes)
Technical Components
Visual Basic 6.0™:
Microsoft™ programming language
My SQL 4.0:
Relational database system
My OBDC 2.50:
Relational database system
Tiff DLL50:
Image viewer displays check images in B/W or 256 shades of gray
BTS Sort:
Multi-column sort utility
ParaScript Check Plus 3.0:
Reads dollar amounts on checks and control documents using image character recognition technology
ParaScript Field Script 4.0:
Reads typed and handwritten alphanumeric characters X-Y coordinates
ASPI:
SCSI-2 driver for Digital Check SCSI card (Free download available)
GIRARD’S GIRARD’S
Girard’s Business Solutions, Inc.
11910 12th Avenue South · Burnsville MN 55337
sales@girardsinc.com · http://www.girardsinc.com
(952) 890-4827 · (800) 536-4472
P a r t n e r s F o r Y o u r S u c c e s s
