Aptys Solutions LLC said it is counting on changes to the automated clearing house system to help its mobile business-to-business payment system take off.
The Rockwall, Texas, company said it is developing a device that would connect to smart phones and convert checks into ACH payments by scanning the magnetic ink character recognition line. However, the ACH system used today has many restrictions on the conversion of business checks.
The Aptys device would compete with similar mobile systems for accepting credit card payments or creating check images with phones. Aptys said it chose to market the device to business users, especially people who are often on the road, because check payments are so entrenched in that market.
However, the company acknowledged that there are restrictions that would make the device impractical under current rules. Notably, checks that have an auxiliary on-us field — business checks — cannot be handled with the back-office conversion or accounts receivable conversion formats that Aptys plans to use.
"There are strong initiatives in the industry which we believe will eliminate these limitations over the next 12 to 18 months," Sean Pennock, Aptys' president, said by e-mail Monday. "While it is true that these current roadblocks will slow the adoption process, we strongly believe there is no reason to halt or delay the introduction of our product into the marketplace."
Eric Dotson, Aptys' executive vice president of sales, said the company has developed a system for ensuring that no checks are improperly converted under current rules.
Aptys does not yet have a prototype of its check-scanning device, but has said it expects to complete one this year.