Image Cash Letter (ICL)
These days everything seems to be moving at the speed of light. We get goods and services delivered Same and Next day. You can even order pizza online and have it at your door in 30-minutes! So why not speed up check deposits? Well, we now have that as well. At Green we are famous for our Same and Next Day deposit times. Now with ICL we can process a batch of checks directly into a merchant's bank account in minutes!
The information is
processed to the bank
Information is taken from
check images and transferred
into electronic code.
How Does it Work?
Image Cash Letter (ICL) is like taking a picture of the front and back of a check and sticking it on a PDF. Then, strip all of the data off of the check and place that into a whole bunch of lines of funky code that only computers read.
We send that to the bank. The bank's computer reads the file and makes the deposit, then copies it on to the Feds for payment of each item.That's the nuts and bolts of it.
How is this Different from ACH?
ACH processing is 4-5 day funding.
That means checks run on Monday get paid on Friday or the following Monday.
With ICL you get SAME DAY funding!
That means checks run on Monday post on Monday.
With ACH you Pay to Reprocess Returns.
That's right. No do-overs. A check bounces unpaid and guess what? Your merchant gets to pay to run it again.
With ICL they get FREE Reprocessing!
That means if a check bounces and your merchant wants to run it again we will not charge them. They can reprocess returns up to 2 additional times for FREE. Talk about a great Sales Pitch. Where else do you get that?
ACH Limits and Reserves
With ACH your merchants have Limits and a Reserve. Those limits keep them from growing unless they are "approved" to process more. Those Reserves hold up their cash flow for 90-180 days, usually at 5-10% of their revenue. That adds up quick. If they process $50k a month their ACH Reserve could be anywhere from $7,500 to $15,000 or more.
With ICL there is No Reserve or Limits
Process as many items as you want, up to a maximum check amount of $25k each. Run $100 a day or $100 Million. They get all of this Without a Reserve.
How do I set this up?
ICL is NOT EASY. Most bankers do not even know what it is, even though 95% of the banks already use it on the back end to settle to the Federal Reserve each day.
The first question is does your merchant qualify? To answer that you will need to answer the following:
1. Do they process at least 1000 checks a month?
2. Do they have a substantial amount of money in the bank?
If you answered yes to both of those questions then they may be a candidate for Image Cash Letter. If you answered no then you may want to look at Remote Deposit.
We will need to jump on a quick conference call to discuss the steps necessary to move this forward with your merchant and their bank.