French checks for merchants
Accepting payments with French checks is in private beta.
Merchants can accept payments using French checks if the debtor's bank is located in France.
About French checks for merchants​
While paper checks aren't the most convenient or secure payment method, they are still a valid way to exchange money. Some users prefer checks, and merchants can accept French checks if they activate this payment method for accepting payments.
Checks must be unique, with different a CMC7 code and RLMC key for each check. If a check is canceled or rejected, however, the same check can be resubmitted. Please note that checks aren't sent back to the account holder unless they're rejected.
Required API fields​
When declaring checks with the API, there are five mandatory API fields:
amount: monetary amount of the check (can't exceed 10 000€).currency:EUR(only euros are supported).CMC7(Caractères Magnétiques Codés à 7 bâtonnets): 31-digit code composed of 3 series of numbers.- Series 1: check number; 7 digits
- Series 2: interbank codes; 12 digits
- Series 3: account number; 12 digits
rlmcKey(Recomposition de la Ligne Magnétique du Chèque): 2-digit code calculated based on the CMC7.merchantProfileId: your developers should enter the merchant's profile ID number.
On the back of the check, the merchant must write their Swan account number as well as provide their signature.
Rolling reserve​
Rolling reserve is a policy Swan applies to merchant transactions to protect the merchant and Swan against various risk factors, primarily insufficient funds and attempted fraud. The reserved amount acts as a safety net to cover potential loss for both Swan and the merchant.
Rolling reserve is expressed as a percentage over a period of time (example: 10% of the payment amount over 30 business days), and applies to most payment methods used by merchants to accept payments with Swan.
For the indicated period of time, the amount isn't part of the merchant's available account balance, after which the funds are released to the merchant and can be used.
| Payment method | Rolling reserve | Default amount |
|---|---|---|
| French checks | ✓ Yes | 100% over 10 business days |
Settlement date and booked time​
Checks are booked 2-3 business days after they arrive at the check processing center.
FNCI & verifying checks​
The FNCI stands for Le fichier national des chèques irréguliers, meaning the National Irregular Check Register. It's a database of stolen and opposed checks made available to remitters by the Banque de France, helping you and your users reduce the risk of cashing fraudulent checks.
When your merchants accept check payments with Swan, Swan verifies the check's regularity with the Banque de France. You receive the result of a check's verification with the API, and your merchants see the result if you're using Swan's Web Banking interface. If you're not using Web Banking, consider integrating the FNCI result in your product.
FNCI results​
Results are provided through the API and on Swan's Web Banking interface. With the results, you receive the name of the bank that issued the check along with two key pieces of information: the color code and the Check Payment Control (CPT).
| FNCI info | Explanation | |
|---|---|---|
| Color code | Green | Positive, meaning the check isn't fraudulent. |
| Orange White Red | Irregular, meaning there's something wrong with the check. For example, the account might be closed, the account holder might not be allowed to write checks, or the check might have been reported as lost or stolen. â›” Swan doesn't accept checks with the color code orange, white, or red. | |
| Check Payment Control (CPT) | CPT1 | Number of FNCI verifications performed on the current day for checks issued by the account holder. |
| CPT2 | Number of FNCI verifications conducted in the past few days for checks issued by the same account holder. | |
| CPT3 | Number of FNCI verifications in recent days for checks issued by the same account holder, typically over a different or extended time period as compared to CPT2. | |
| Holder establishment | The name of the bank that issued the check. | |
If the bank name is different from the holder establishment provided in the FNCI result, it may indicate fraud, even if the color code is green.
R-transactions​
Rejected​
Checks can be rejected by Swan's check provider and returned to the merchant by mail, mailed to the account holder's address. They'll receive helpful information about why the check has been rejected, and then they can fix and resend the rejected checks.
Before resending the rejected check, the merchant should create a new checkIn transaction.
If they send the check without creating the new checkIn transaction, the check remains rejected and will be returned to the merchant again.
Additionally, all checks not received by Swan's check provider within 30 days of being declared will be automatically Rejected.
A check transaction can be rejected for the following reasons:
| Rejection reason | Explanation |
|---|---|
AmountMismatch | Amount on the check and amount declared through the API don't match. |
BeneficiaryMismatch | Amount beneficiary name the check and the name declared through the API don't match. |
BeneficiaryMissingOrIncorrect | Merchant's name is missing or incorrect. |
CheckNotReceived | Check wasn't received by Swan's check provider. This reason doesn't appear until 30 days after the check was declared. |
CheckReceivedLate | Check was received by Swan's check provider more than 30 days after the check was declared, or if Swan's check provider received a canceled check. |
DateMissing | There's no date on the check. |
DateInvalid | Date on the check is in the future or isn't valid. |
DebtorNameMissing | Debtor's name (your merchant's customer) must appear on the check. |
InvalidOrMissingAmount | No amount is written on the check, the format shows an invalid amount, or the amount is shared in the wrong format (numbers instead of letters). |
SignatureMissing | Debtor's signature is missing, or there was a problem with the signature. |
Returned​
Checks can be returned up to 10 business days after the transaction is Booked, and this window can be extended to 90 calendar days based on the reason for return.
Note that checks aren't mailed back to the merchant.
A check transaction might be returned for the following reasons (this list is not exhaustive):
- Insufficient funds
- Account closed
- Loss or theft
By the time a check is returned, the merchant's account has already be credited.
Therefore, when Swan is notified that a Booked check has gone unpaid, a checkInReturn transaction is created automatically.
Canceled​
Creditors can cancel a received check with the Upcoming status unless the check processing center already received the check.
In this case of a canceled check, the status switches automatically to Canceled.
This transaction won't impact the account's available balance.