EPO Transaction Flow

The complete Check 21 EPO transaction flow can be understood through the following steps: 

  1. Customer provides debit payment details.
  2. Customer authorizes check draft.
  3. Merchant collects debit payment and authorization details over the phone, via the WEB or at the Point of Sale (POS).  If the information is collected at POS, desktop imager scans the physical check, skipping steps 5, 6 and 7 below and directly goes to step 8.
  4. Merchant forwards respective electronic transaction details to Payment21® via API or batch-upload.
  5. Payment21® provides digital lockbox services to capture financial data electronically together with delivering accredited check truncation software in the Cloud.
  6. Payment21® enables printing of check drafts on demand (POD).
  7. Web-based imager takes care of check truncation generating Image Replacement Documents (IRDs), and transmitting Image Cash Letter (ICL) in compliance with the Check 21 Act.
  8. Payment21® deposits the Image Cash letter containing electronic images of the original paper check to the merchant's dedicated bank account for further clearing and settlement on a daily basis. This process is called Remote Deposit Capture (RDC).
  9. Bank receives ICLs from Payment21®.
  10. Bank clears and settles all payments.
  11. Merchant is able to access funds same day.

The Check 21 EPO service offered by Payment21® follows a four-corner transaction flow model with the customer, merchant, Payment21® and the bank at the four corners.

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