The Check's Not in the Mail

E pson, one of the leaders in value-added solutions for the POS industry, recently debuted its TM-H6000II digital check-imaging printer. By integrating digital check imaging technology into a multifunction POS printer, Epson enables retailers to eliminate costly check-processing devices at each checkout location while delivering a dramatic reduction in check-processing costs.

The TM-H6000II represents a new class of POS printer that combines slip, impact and two-color thermal printing with integrated imaging technology, and it's the fastest and most compact design in its class, according to Epson.

The benefits that Epson expects to provide for merchants encompass both time and economy. Epson is banking on the hope that this printer will give merchants and their ISOs an incentive to change the way they accept and process check payments, potentially contributing to the acceptance of electronic check conversion in the retail industry.

Checks represent more than 22 percent of all retail transactions and pose an average estimated processing cost of 34 cents each for the retailer.1 Although check-scanning technology exists today, it requires a specialized stand-alone terminal that competes for valuable counter space and requires an additional investment of $400 to 600 per register over the cost of the POS system.

In addition, most current check-scanning terminals do not capture the complete check image, leaving the retailer with only the MICR code to collect returned checks along with a cumbersome seven- to 10-day process before funds are received. The delay in receipt of funds results in inefficient cash flow and lower interest income for the retailer and ultimately the ISO.

With its unique TransScan digital imaging technology, the TM-H6000II seamlessly integrates complete check imaging into retailers' existing POS systems, making it possible to cost-effectively convert checks to electronic payments at the point-of-sale. Upon inserting the check into the printer, TransScan digitizes and transmits the check image to the back office for processing. Total check processing time at checkout is reduced by an estimated 50 percent (from 51 to 25 seconds on average).

Eliminating paper checks results in a tremendous labor savings at both the checkout and the back office. Because transactions are electronically transmitted to clearing houses and banks, returned checks are resubmitted more quickly, reducing the total number and high cost of returned checks. Also, funds are typically received in one day or less, dramatically improving cash flow and increasing interest income.

According to Epson, the TM-H6000II also reduces handling and routing costs associated with processing, storing and routing paper checks by an estimated 38 percent (a reduction in the average check-processing cost from 34 to 21 cents), which Epson sees as a substantial savings for most mass merchandising and supermarket retailers.

Epson also wants ISOs and their merchants to consider the fact that because the complete check image is captured, retailers might gain control of valuable customer contact and purchasing information to drive targeted, personalized marketing programs that can increase store revenues.

In keeping with the philosophy of increased revenue opportunity, the TM- H6000II has a two-color thermal printing capability that allows retailers to create high-impact receipts with high-resolution logos, coupons and graphics, reinforcing their marketing messages long after the customer has left the store.

Designed to take advantage of new, lower-cost, two-color thermal papers, the TM-H6000II makes two-color thermal printing an affordable option. Its built-in, user-available memory can store bit-mapped images such as company logos, high-end photos, coupons or graphics for receipt or gift certificate printing.

And the TM-H6000II delivers that printing pronto. With a two-color thermal print speed of 17.7 lines per second and a single-color print speed of 53 lines per second, the TM-H6000II speeds customers through the checkout line without the processing delay that can be inherent in competitive products. All documents are printed at a crisp, clear 180 dpi. The TM-H6000II is reliable with a long printer head life of 52 million mean characters between failures.

Another appealing aspect of this printer is that with Epson's complete line of Connect-It(TM) interface options, the TM-H6000II is compatible with proprietary systems as well as today's best-of-breed solutions to ensure protection of the merchant's system investment.

The TM-H6000II supports full IBM(R) 4610 native mode emulation, allowing retailers to upgrade printer speed and performance without buying an entirely new POS system. The TM-H6000II also supports RS-232 and bi- directional parallel interfaces as well as RS-485 and USB PlusPower, allowing retailers to select the interface that meets current needs and the ability to upgrade as their needs change.

"The TM-H6000II gives large, multilane retailers a major opportunity to reap huge savings," said Bud Weist, Director, Epson Sales and Marketing, System Device group. "Major retail and supermarket chains can save millions every year by eliminating manual check handling and storage costs and improving cash flow."

The TM-H6000II is available through Epson's designated sales and distribution channels. For more information, visit their Web site at www.pos.epson.com/checks.

1 (Source: FMI Activity-Based Cost Study of Retail Payments, May 2001).