

Ask HN: Who wants to accept Check online? - achguy

I am building a payments product which will help you accept checks online digitally without the customers having to mail you paper checks. Different from e-checks in that there are no NSFs and funds are guaranteed - also the user experience is totally different. More efficient and much cheaper than credit cards. Are you interested in your using it (US only for now)?<p>If you are interested, please leave your email&#x2F;contact here and we will get in touch with you!<p>Or share your email here: https:&#x2F;&#x2F;docs.google.com&#x2F;forms&#x2F;d&#x2F;10fAEOBu8h15p_eNPyJ8oYOmGHb1d-EkeRCYLwho03WE&#x2F;viewform?usp=send_form
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pbnjay
I hate to burst your bubble or anything, but dwolla.com does this pretty well
and cheaply. How will you differentiate?

I don't quite follow the "no NSFs and funds are guaranteed" \- are you
implying that if the transaction is authorized there will never be a
chargeback (or equivalent)? I need more info - I can't think of any way you
could handle it sustainably.

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achguy
No worries. dwolla.com I believe uses and existing relationship with a credit
union/bank and hence restricts real-time transfers to account holders of
that/those bank(s) - which is a small percentage. Additionally it requires
signups, SS# etc. so the experience is fundamentally different. The problem is
not just being able to make a financial transaction but able to do it easily -
when I'm transacting on the Internet the last thing I want todo is signup for
yet another service

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pbnjay
You're doing real-time payments?? My unanswered questions about no-
NSF/guaranteed funds are even more pertinent then... It sounds like you've
either got some ridiculously good creditworthiness detection, or you're
glossing over a huge issue.

As a money transmitter, I don't know how you'd get around the legal
requirements to collect SSN and contact info for US recipients...

Dwolla also has "Guest Sending" \- so users don't need to sign up for dwolla
to send me money:
[https://developers.dwolla.com/dev/docs/transactions/guestsen...](https://developers.dwolla.com/dev/docs/transactions/guestsend)

~~~
achguy
As I alluded in my other reply we guarantee real-time authorization, not real-
time settlement. Settlement can happen in batch mode using networks likes
Check21 or ACH.

No NSF != Guaranteed funds

Any payor has the right to dispute a charge. That is a Federal Regulation (Reg
E ) so no payment system can guarantee funds (other than wire transfers which
are fund transfers not transactions i.e. not funds paid for goods/services
received )

We guarantee no NSFs. With ACH NSFs are a big issue since until the 2-3
settlement is done one does not know whether the funds are going to clear.
What the Payor disputes with the Merchant is between Payor and the Merchant

In so far as SS# collection etc. it applies only to the receiver not to the
sender. MTA laws apply only if funds are being held.

As far as guest checkout for Dwolla and other services - please try it and let
me know how far you can get without signing up for the service... the way I
see it is guest checkout is simply deferring sign-up not obviating it.

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basdevries
You arn't explaining much of the actual benefits of the product, but for what
you do describe: Bitcoin can also solve all of these problems. Why bother
using checks when it's obsolete in 5-10 years?

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bpicolo
You realize that checks transfer more money than any other strategy in modern
times?

~~~
achguy
Indeed.

"ballpark" numbers:

Total transactions volume VISA/MC CC in 2013: Appx $7-8Trillion Total
transaction volume using paper Checks and ACH in 2013: Appx $70Trillion i.e.
10X

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lumberjack
How does it defer from a wire transfer?

~~~
achguy
A typical payment/financial transaction has two parts, authorization and
settlement. In a wire transfer authorization and settlement happen in real-
time (they are known as RTGS = real-time gross settlement) i.e. the money is
transferred in a single instruction in real-time and once this transaction is
complete there is generally no recourse for roll-back. Hence wire-transfers
involve high authentication barriers (typically faxing a request with
signature or going to a branch) and cost a lot (typically $25 to $50 for
outbound transfers) and hence are unsuitable for ecommerce

In our system the authorization portion of the financial transaction happens
in real-time but settlement happens in batch (using settlement networks like
Check21 or ACH). This makes it feasible for Internet based transactions i.e.
ecommerce since authentication can be a simple click on a web page as well as
retains the cost structure very low i.e. not just cheaper than wire transfers
but also lower cost than Credit Cards.

