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> Glossary of Terms
 
 
 
   
  Consumer Glossary

Authorization
Giving permission to someone to do something; in the case of electronic checks, giving permission the person or company taking the payment that they can present the check electronically.

Check conversion
The process of turning a paper check payment into an electronic payment that is covered by the federal laws and regulations that govern electronic payments

Check truncation
The process of turning a paper check payment into an electronic payment that remains covered by the federal and state laws and regulations that govern paper checks.

Electronic check - also called e-Check or echeck
A form of electronic payment where the customer provides account information to the company or person taking the payment by using information on a paper check. In most (but not all) forms of electronic check, the original paper check is not processed.

Electronic Funds Transfer (EFT), also called Electronic Payments
A generic term describing any transfer of funds between parties or financial institutions via electronic data systems. A generic term used whenever money is moved without the use of a check or draft. EFT is any transfer of funds between accounts using an electronic terminal, telephone, computer, or magnetic tape and that does not use checks or other paper. Transfer of funds electronically rather than by check or cash.

Internet-Initiated electronic check
A form of electronic payment used by a company to charge (debit) a consumer's account after obtaining authorization directly from the customer via the Internet. Sometimes called electronic check, ACH-based electronic check, or e-Check.

MICR-line information
MICR-line information refers to the data characters at the bottom of a check. The magnetic ink character recognition (MICR) line at the bottom of a check includes the routing number of the payor bank, the amount of the check, the number of the check, and the account number of the customer.

Point-of-Purchase or POP electronic check
A form of electronic payment used by a company to charge (debit) a consumer's account after obtaining written authorization directly from the customer. The customer provides a check to the company in person, and the company obtains account information from the check. Sometimes called electronic check, ACH-based electronic check, or e-Check.

PIN - personal identification number
A number used by the customer to authorize transactions using an access card or some other form of electronic funds transfer. The code number may be assigned by the bank or chosen by the customer. The PIN number should be kept secret by the customer.

Represented Check Entry (RCK)
A form of electronic payment used by a company to charge (debit) a consumer's account when a paper check has been bounced because there wasn't enough money in the account to pay the check. The customer (checkwriter) has to be notified in advance that the check may be presented electronically if it bounces. Sometimes called electronic check, r-check, ACH-based electronic check, or e-Check.

Telephone-Initiated Payment
A form of electronic payment used by a company to charge (debit) a consumer's account after obtaining authorization directly from the consumer orally via the telephone. Sometimes called electronic check, ACH-based electronic check, or e-Check.

Web-based Payment
A form of electronic payment used by a company to charge (debit) a consumer's account after obtaining authorization directly from the customer via the Internet. Sometimes called electronic check, ACH-based electronic check, or e-Check.
 
   
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