Category: ACH


CFPB vs ACH Processor Intercept EFT

ACH Processor for Payday Loan and Car Title Loan Lenders Charged by CFPB

42. For example, an ODFI complained to Defendants that one of its clients, an auto title lender, which was debiting varying amounts from consumers’ accounts multiple times, did not have the contractual right or proper consumer authorization to do so, stating that it was “not ok [for the] merchant to us[e] the ACH to ‘sneak’ attack a consumer’s account, [as] it will only draw regulatory attention.” Continue Reading..


Operation Choke Point, Payday Loans, Senator Cruz

Operation Choke Point

Payday loans, guns…

Senator Cruz takes “big Brother” to task! This is beautiful.

AG Nominee Stuart Delery is a weasel… Sen. Cruz Questions  AG Nominee Stuart Delery on Operation Choke Point.


No More Payday Loan ACH Transactions Allowed!

You may not currently operate in California BUT this strategy by State regulators will eventually bite you in the ass as well! No payday loan ACH transactions allowed. Image Cash Letters (ICL) to replace ACH?

No ACH transactions to be allowed in Calif.

A data base to be enforced in California.

Proposed Regulations under the California Deferred Deposit Transaction Law

The DBO (California Department of Oversite) recently issued an invitation for comments on a revised draft of changes to its payday lending regulations. The DBO supervises payday lending under the California Deferred Deposit Transaction Law (CDDTL). The deadline for submitting comments is June 24.

Two components of the draft rules have generated significant debate.

  • One would limit transactions to paper checks only – no ACH, debit cards, prepaid cards or credit cards.
  • The second provision would establish a common database under DBO’s management. Payday lenders would have to record all loans in the database, and check the database prior to the transaction to determine whether the borrower already had an outstanding payday loan.

The Invitation for Comments notice and proposed text are available at this link:

Please submit comments to

What’s this mean? (Visit for an ACH alternative now.)

  • If ACH for payday loans is not available in California, it can happen in your state.
  • Payday and other small dollar credit lenders who fail to add Image Cash Letters to their money delivery options will not survive.
  • Valuations for payday loan, small dollar credit and car title lenders will increase.
  • Your Number One priority is to insist your associates, customers, staff, peers, and the industry respond to the Calif. Department of Oversight immediately!

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Image Cash Letter ICL

Image Cash Letter-ACH Alternative

Payday Loan & Car Title ACH Alternative – The Offering:

Image Cash Letter: A web based portal that will allow for the following:

1) Collection of payments in as early as 1 day

2) Verification of the account prior to deposit to minimize return items and fees (option to push payment regardless)

3) The ability to collect payments by batch, single payments and recurring payments

4) The ability to use the system for scheduled and unscheduled collection payments

5) The ability to use account verification independent of payment processing

6) The ability to push money to customers

7) The ability to collect from persons or businesses.

There are no reserves or extensive underwriting like ACH as the company does not hold your funds or provide you credit. All funds flow directly from your customers account to your account. If an item is returned, it is returned into your account. We do not charge return fees.

ACH for Payday Loan Business

The first service is defined as E Check Draft. An Electronic image is printed out and submitted to your bank for payment. If you bank with Chase, BBT, SunTrust, 5th 3rd or PNC, Payment is credited next day. This is RDC but we create and scan all the items. If you bank at any other bank, payment would not be removed from your customer’s account for 3-5 days and credited to your account.

The preferred solution is ICL (image cash letter) which is also built into the system. This will allow for an electronic file to be set up directly with the bank. This is not check 21 and no image is required to be printed out. This can work with any bank and generally takes 2 weeks to set up. We can guide you on the steps necessary to request this product from your bank so that we may set up ICL. In that case, regardless of where you bank, the money would post out of your customers account next day.

Differences from RCC

ICL creates an electronic file and not a check image like RDC or RCC. RCC takes at least 1 day or more whereas ICL funds enter your account same day if before cut off.

It’s a much faster delivery. Quicker by at least a day over RCC.

Its posts direct to fed same time as bank.

The bank is hands off so they are happier with little involvement on their side once it is set up.

For example with Chase, if you were to send 10,000 items now by 8 pm, they would post SAME DAY unless bank has special holding rules.

We pre-scrub each item (included in fee) so you know if it’s bad before you send it! This greatly assists you in your decision process.

This SERVICE WILL greatly reduce returns and help in the collection process.

If you would like to discuss this service in greater detail, and how it can benefit you,  schedule a call here to determine if you are qualified. Click to “Schedule a Call.”

ACH for Payday Loan Business


ACH Alternative for Payday Lenders

Bank for payday loan businessIs your ACH processor threatening you? Is your “return rate too high?” Is your state, similar to California, contemplating  banning payday loan lender access to electronic access to consumer bank accounts?  No worries! When 35 million consumers demand access to a product, entrepreneurs always find a way. There’s a fix for this! If you need an alternative to ACH, I’ve got it. Reach out. It’s cheap, proven and works. It’s called Image Check Letter (ICL) and it’s a new, exciting way to enable nearly any business (no porn or pharmaceuticals) to easily collect payments. You can easily make deposits as well! Want more info? Inquire about ICL Click HereICL is a great backup for state, tribe, store-front and internet lenders! Get ready for the future.

No more worries about ACH termination


ICL System: No deposits, 1-2 day clearing of funds, return notification in 1-2 days, no worries about return percentages, funds deposited directly into your account, and no worries about receiving a termination letter from your ACH processor.

ACH Alternative processing payday loans

“California will track consumers who take out payday loans and ban letting online payday lenders getting electronic access to customers’ bank accounts under a new regulatory proposal, according to American Banker.”

“The new rules would require payday lenders to secure loans with a paper check instead of electronic account access. That would make it much harder for online payday lenders to do business — but those lenders are typically much more expensive than storefront lenders and generate more fraud and abuse, and most online lenders don’t have state licenses, according to a 2014 Pew Charitable Trusts report.”