An expedited way for vendors to clear funds from a personal check used to pay for service has been extended to American Samoa for the first time and this is new to the territory but has been used widely throughout the U.S. and several countries.

This new service, thanks to modern technology, i.e. the internet, is called TeleCheck, an electric and internet check acceptance service. TeleCheck is part of the First Data, headquartered in Atlanta, family.

Samoa News first learned early last week of this service from three customers — including a Samoa News staff member— after visiting BlueSky Communications using a personal check to pay for service. The personal check is processed thru an Electric Fund Transfer. A receipt is given to the customer showing that the check  was processed electronically “Powered by TeleCheck”.

The personal check, which is already processed with the word “void” printed across the check, is returned to the customer with a BlueSky receipt. This is similar to a customer paying with a credit card, with the card receipt and the vendor’s receipt.

Samoa News was only able to confirm at press time that BlueSky is a vendor for TeleCheck. Representatives of four other major businesses in the territory that were reached by phone all say they are not utilizing this service.

Chamber of Commerce chairman David Robinson says he has checked with the Chamber board members about this service and it appears the private sector generally seems not to be embracing at this point and time the TeleCheck service.

The manager of a local business says she is aware of TeleCheck being on island but is reviewing vendor fees and other services provided by First Data before making a final decision.

“This service is of great help in cutting down the number of returned checks for insufficient funds,” said the manager who asked not be identified at this time. “This service is also helpful in getting the money credited to a vendor’s account in an expeditious manner. It also ensures that cash flow is quickly available for use by a business.”

“While cash is widely used for payments in American Samoa, there are also a lot of people who use personal checks to pay for services. Instead of posting a note that ‘we do not accept personal checks’, the option is to use TeleCheck so that customers are not turned away,” said the manager.

Responding to Samoa News questions, First Data’s director of communication, Cara Crifasi said “fees are typically per transaction along with a percent of the amount of the check. TeleCheck fees are typically much lower than credit card transaction processing fees.

Asked when the vendor can expect funds to be deposited into that vendor’s bank  account after processing a check through TeleCheck, she said, funding occurs within 48 business hours of the transaction.

As to the benefits to the vendor for using TeleCheck, Crifasi said, TeleCheck innovations “help you avoid the risk of accepting payment by check, decrease transaction processing costs, reduce administrative activities, improve cash flow, and free you from time-consuming collections. Customers benefit from choice in how they pay and better protection of their personal information.”

She also says that TeleCheck processes 1.6 million transactions daily through 370,000 subscribing locations, including 8 of the top 10 U.S. retailers. Additionally TeleCheck has data and knowledge on 98% of retail check writers.

“As payment alternatives evolve, TeleCheck continues to lead by enabling merchants to accept and consumers to pay using their mobile devices,” said Crifasi, who noted that TeleCheck service also “helps you manage fraud losses”.

For more information on TeleCheck including other products can be found on: www.firstdata.com.