Linda Kesler recalls the reaction she got from a business partner when she first proposed developing a software program to print their company checks: "You can't do that, it's against the law."
Yes, you can; and no, it's not.Kesler is president and chief executive officer of Create-A-Check, a Salt Lake company that's been putting check-writing technology in the hands of large organizations, such as Mrs. Fields, US WEST and Wardley Better Homes and Gardens, since 1990.
Now, Create-A-Check is making that same technology available to small businesses and individuals. On Monday, the company began shipping Create-A-Check Professional and Create-A-Check Personal, programs aimed at payroll services, management firms, small businesses and individuals.
"Most business and personal users still believe they must use pre-printed check forms. Their businesses absorb the added cost, operational limitations and security risks because they believe they have no choice," said Donald Cantral, executive vice president of Create-A-Check. "Create-A-Check gives control back to the business or individual."
As Kesler says: "Pre-printed checks and mind-set are our competition."
Pre-printed checks are a big business. Each year, banks and printing companies issue approximately 20 billion pre-printed checks. According to one study, 30 percent of those checks will be printed through the desktop technology offered by firms such as Create-A-Check by the year 1996.
The public is, apparently, ready to alter its mind-set. Create-A-Check learned that last week when the first ad for its new products appeared in a computer reseller magazine. In two days, the company received 1,000 orders for the software programs.
"I've never had any kind of response like this," Cantral said. "We were thinking we would do 10,000 units this year. I think that number's very conservative now."
If Create-A-Check is on target, businesses and individuals can forget ordering pre-printed checks, keeping multiple check styles around for various business or personal uses, running out of checks and having to lock them away for security reasons.
Create-A-Check software runs on IBM compatible personal computers hooked to laser printers equipped with magnetic ink cartridges. Create-A-Check programs work seamlessly with most personal finance and accounting programs.
"It will seem as though the user's accounting software is handling the printing," Cantral said.
Create-A-Check software automates and controls the printing of checks including forms layout, digitized logos and signatures, check information and bank magnetic ink character recognition encoding on blank security check stock.
The bank magnetic ink characters are the series of numbers and symbols that appear in the lower left corner or across the bottom of a check. The series is read by electronic equipment at banks to route and process checks. Create-A-Check's program meets magnetic ink character and document standards established by the American Bankers Association and American national Standards Institute Inc.
The program also has a variety of built-in security features to help businesses and individuals guard against check fraud: passwords; an exclusive Trace-A-Check function which tracks user, date, time and serial number of software used to create checks; encryption of sensitive data; disk control of proprietary magnetic ink character recognition fonts, logos and signatures; and a signature security code to scan and digitize signatures.
The company also markets a check stock produced by Duplex that contains built-in security features, such as watermarks and a void pantograph. The blank check stock allows businesses to use a single check style for various purposes and limits security concerns.
In addition, it has an agreement with TeleCheck, a consumer check data base, that allows Create-A-Check to verify each purchaser's identity and account status before activating their software package.
"By looking forward and recognizing bank industry issues and concerns, Create-A-Check is at the forefront, setting the standard for this type of technology," Kesler said.
Kesler won't give out any sales figures for her privately held company. But she said, "We'll be 10 times last year by the end of this year." The company currently employees 22 people but is adding personnel rapidly.
Create-A-Check Professional and Create-A-Check Personal, which each come with software, a magnetic toner and security check stock, have suggested retail prices of $499.95 and $249.95 respectively.