Instant Funds Transfer
EFT Networks
ONLINE LENDERS WANT CONNECTIVITY THROUGH A PROVIDER TO:
•
MAESTRO
•
SHAZAM
•
NYCE
•
PULSE
•
STAR
•
CU24 and others
Near ubiquitous ability to credit a bank account
Eliminate Friction & Delays in Money Movement
Today’s Market
•
Cash, Checks, and Bank Wires
are Cumbersome & Expensive
•
Most transfers take 1 – 2 Days
•
Electronic Methods Require
Enrollment and Bank Routing &
Transit Information
•
Only Available During Banking
Hours
•
Virtual Wallet are Not Real
Money
Consumer’s Debit Card # is
Captured…No Enrollment
Transaction Rides EFT
Network Rails…
24 x 7 x 365 Availability
Real $’s in Consumer’s Bank
Account in Seconds
Hosted Services
Web or
Mobile
Customer App
Secure
Web
Services
Portal
Internet
Web
Servers
Payment
Servers
PCI Compliant
Lower cost compared to Printing and mailing checks
Instant use of funds for the recipient
PCI compliant
Fast 24x7x365 payment alternative
Payday Lending
Is Check 21 the Solution?
What is CheckAlt?
CheckAlt is a Check 21 application company
that specializes in enabling lenders to debit
their borrowers account in the most efficient
manner creating a more transparent, quicker
and more secure experience.
Our Management Team
Shai Stern
Co-Chairman and Chief Executive Officer
Shai Stern is CEO of CheckAlt, LLC, a Check 21 application company specializing in check processing, mobile payments, and mcommerce. He also currently serves as
Co-Chairman of Vcorp Services, Vstock Transfer and Vcheck Global. In 2002, Mr. Stern co-founded Vintage Filings, a New York based EDGAR filing firm, which was
later acquired by PR Newswire in 2007. Mr. Stern served as CEO and Co-Chairman of Vintage Filings through November, 2011. Mr. Stern was formerly a vice president
at American Stock Transfer Company where he initiated business relationships and was responsible for outstanding share balances of over 2,000 publicly held
companies. He was instrumental in the growth of AST Stock Plan, which administered stock options and stock benefit plans to 500 publicly traded companies, prior to its
purchase by Citibank. Additionally, Mr. Stern is on the board of Double Beam and Zipmark.
George Karfunkel
Co-Chairman
George Karfunkel is currently the Chairman of Sabr Group in New York. He serves as a Director of American Stock Transfer & Trust Company, LLC, which serves
approximately 3,000 public companies with over 6,000,000 shareholder accounts. He has been associated with AST since 1971 and served as its Senior Vice President
through the first quarter of 2010. Mr. Karfunkel is also vice chairman of The Upstate Bank, and serves on the Board of Directors of AmTrust Financial Services (AFSI),
as well as for several other companies.
Jeryl Lederman
Chief Information Officer
Jeryl Lederman brings over 26 years of software development expertise to CheckAlt Payment Solutions, and he oversees the company’s software and server
operations. He is also President of Lederman Group, a software development firm with extensive experience in the financial, advertising, construction, and medical
service industries. Mr. Lederman was Co-Founder and Executive Vice President for Capital Market Decisions in Stamford, CT and Vice President for Smith Barney,
Harris Upham & Co., in New York, NY. Capital Market Decisions was funded by Reuters to develop a desktop analytical trading system in 1990, and he was responsible
for the technical development and nationwide roll-out. Mr. Lederman has an M.S. in Mechanical Engineering from the University of Illinois and a B.A. in Math-Physics
from Colgate University.
The Problem for Lenders
Today
• Regulators have spooked banks out of doing
business with payday lenders
• ACH processors have been shut down
• Proof of authorization now required
The Solution: eChecks via
Check 21
• Provides additional transparency
• Allows signature and loan number via eCheck API
• Deposits directly into lender’s bank account
• Schedules deposits based on time, amount of debits
& value of debits
• Enables additional screening (i.e. ensures account is
open with balance ˃ zero) to minimize returns
• Delivers posting files to LMS
What Check 21 Looks Like
Front and back image of check to
deliver to the bank
6 additional lines of data
(customer number, invoice
number, loan number)
Virtual endorsement to
verify proof of authorization
Easy to Set up
1. Create a CSV file of your items to deposit.
2. Transfer the file via Secure FTP site.
3. The Check21 transactions are processed
at your bank.
4. Image Reporting is at your fingertips.
Reduce Returns
There are two simple steps that are required and are
assured to reduce returns:
1. Run MicroBilt’s ID-Verify once on each consumer; ODFIs
require this level of KYC for today’s transactions.
2. Run MicroBilt’s Risk Verify Database (rVd+) on each
Check21 transaction to verify the status of the account:
Name-MICR Match; Open/Closed, Positive/Negative
balance, and many more fields with risk tiers…
Commitment
Check21 processing carries risk for the
ODFI. This risk is off-set with a combination
of holds and reserves.
These items may be renegotiated over time
as your Check21 relationship matures.
Let’s get Started
See us after the presentation for more details.
Payments:
Debit Card Processing
How does Debit card processing work?
Signature Debit
Networks:
•
•
•
•
Visa
MasterCard
Discover
JCB
Signature vs.
Pinless?
• Realtime
Why
Use Good
the Debit Card as
guaranteed
Funds
•
No
NSF
returns
Collateral?
• Available 24/7
including
weekends and
holidays
• Immediate
answers
• Positive
Customer
Experience-
• Multiple attempts
within 14 day
period
• Most all banks
issue a debit card
• Alternative to
ACH- Visa/MC
are private
networks
Payment Channels?
• Initial loan application
• Web
• Tel
• IVR
• Mobile Text
Best Practices
•
•
•
•
•
•
•
Pre Authorization
Customer Vault
Tokenization
PCI
Debit Only
Monitor Charge-backs
1% Threshold - Unauthorized
Challenges
• MCC Code-6501 Quasi Cash
• Some Issuers Block
• Some Prepaid Blocked
• Card Not Present Fraud
• Abusive Practices
• Sponsor Banks
Proper Authorization?
“I (we) hereby authorize [LENDER NAME] hereinafter
called Company, to initiate debit/credit entries to my
(our) account indicated below and the financial
institution named below, hereinafter called Financial
Institution, to debit/credit the same to such account for
(Application). I (we) acknowledge that the origination of
ACH transactions to my (our) account must comply with
the provisions of U.S. law. Furthermore this
authorization applies to my Credit/debit card number
below, which I agree to pay above total amount
according to Card Issuer Agreement.”