Check Conversion: Harnessing the Power of Technology with Built-In Profit Potential

    July 31, 2003

As we continue to surge forward on the coattails of the “technology revolution,” many business folks and entrepreneurs have grasped the concept that personal fortunes may be acquired through the avenue of modern machinery (which must be tweaked in just the right way). Consider, for example, those who have learned how to turn their computers into mighty cash machines. Indeed, those who can effectively utilize and/or market technological gadgets or devices place themselves in a position of watching their earnings take off like fireworks in July.

One such apparatus that can unlock dormant profits (and make life a lot easier) for business owners is the rather ingenious check conversion machine. Envision a device that is similar in nature to credit card terminals. (Manual imprinters are almost extinct!) In the same fashion that a credit card is run through a terminal, a paper check may now run through a check reader (or, what is known in the world of commerce, as a check conversion machine).

The paper check becomes an electronic item at the point of sale as the MICR (Magnetic Ink Character Recognition) information is captured and the amount is entered on a terminal keypad. The transaction is electronically transferred through the Automated Clearing House (ACH) system and funds are automatically transferred from the customer’s account to the business owner’s account usually within three to four banking days.

The increasingly popular check conversion machine offered by IntelliCollect offers several advantages over competitive models. IntelliCollect’s model uses verification to ensure that a check writer is not on a negative database of bad check writers. While there exists no guarantee that the check will not bounce, it dramatically reduces the chances of such an occurrence. Moreover, an auto collect feature handles those checks that do “fall through the cracks” and bounce. This feature attempts to retrieve the money electronically two additional times, if necessary. This “behind the scenes” recovery option seems preferable over traditional collection procedures entailing phone calls and letters.

In reviewing the multiple benefits of check conversion, it seems time to “automate” paper checks. In this way, a business owner does not have to complete any more deposit slips or go to a bank to process payment. The owner can get money quicker and more efficiently and even expedite the collection process as NSF and other returned items are discovered faster. Moreover, there exists check verification to reduce exposure to the intentional bad check writer. And finally, accepting checks in this way is generally much cheaper than credit card processing.

In the not too distant future, check conversion machines will take its rightful place along credit card terminals in most business operations. In the incessant cost vs. benefit analysis, the collective mindset of business owners will be converted to employing electronic check conversion with its built-in profit potential.

Author, William Hamilton, owns a payment processing company, IntelliCollect, and their services are listed at: His company offers tremendous assistance to new and veteran business owners who need an effective solution to accept credit cards and checks.