Differences between OBC and Direct checks:
- OBC – we pull the funds for all checks at once. Direct/Client – funds stay in the payroll acct until checks are cashed.
- We issue stop payment on OBC, client does on direct.
- When we stop payment on an OBC check, funds are pushed back the client. If the client just needs to replace the check, they can write a replacement and no void is necessary in the system.
- If a void is necessary (check was in the wrong amount, for example), processing a special payroll with the void in it will initiate the return of funds. A void and replacement check in the system (not manual) should result in zero funds being moved except for the service fee.
- Historically a stop payment has not been necessary on OBC checks if the client mails them to our office.
- OBC NSF due to early cashing – recent "offenders" will receive a pass and communication that explains why it needs to stop and the fee for if it happens again. That will be the process for future occurrences.
Where you can see which type of check funding a company uses: