In one of three ways:
Note: The term 'subscriber' refers to your 'member'.
Electronic Payments (ACH) - Fiserv's preference is to send all payments electronically. However in the Risk Model format it is not always feasible. Fiserv submits the merchant payment (via the fed) from a Fiserv settlement account the same day we submit the debit (via the fed) to the subscriber account. Fiserv is taking the risk on the payment. Electronic payments are typically sent when the subscriber has a good credit score, is paying a managed Fiserv Payee (one that we have an electronic remit relationship with) and the payment amount is acceptable for our risk limits. The benefit to the end user with an electronic payment is that the funds do not come out of their account until the payment due date (subscriber is debited the same day the merchant is credited).
Corporate Checks - are typically used when we have a managed relationship with the Payee but they are not able to accept an electronic payment for a given transaction. The debit to the subscriber works the same way for a corporate check as it does for an electronic payment (Fiserv submits a debit to the fed the day before the due date). The benefit to the subscriber with a corporate check is that the payment is guaranteed to be paid on the due date and the subscriber is not debited until the due date.
Laser Drafts - are typically sent when Fiserv does not have a managed remit relationship with the Payee (typically local merchants) and/or the subscriber has a poor credit score, and/or has a poor payment history, and/or the payment amount exceeds Fiserv's risk threshold (example: I send a check to pay off a vehicle for $4,500 chances are that payment will go via laser draft even if Fiserv has an electronic remit relationship with the Payee). The advantage to the subscriber with a laser check is that Fiserv guarantees the payment will be paid on the due date and the funds do not get pulled from the subscriber account until after the due (when the laser check clears item processing for the payee and the bank).