Consumers continue to write checks in large numbers. The 2010 Federal Reserve Payments Study, last updated in April 2011, states the number of checks paid in 2009 is estimated to have been 24.5 billion, with a value of $31.6 billion. With the amount of checks written and their total value, it's important for merchants to understand check's value and the consequent benefits of implementing a check conversion service.

Merchants who accept check payments stand to gain higher sales and profits. Check conversion makes this all possible because it reduces internal costs and speeds up payment processing.

The Federal Reserve Board defines check conversion as the "process in which your check is used as a source of information - for the check number, your account number, and the number that identifies your financial institution... to make an electronic payment from your account."

CrossCheck offers a collection of electronic services that are designed to save merchants time and increase their sales. A few of these programs include:

• Electronic Check Processing with recovery - automated check authorization and depositing to the merchant's account
• Remote Deposit Capture (RDC) - offers guarantee benefits and Future Deposit capabilities
• Conversion Plus - converts checks at the point of sale and checks mailed in for payment

It is important to point out that check conversion services can be used as a verification stand-alone service, or with guarantee. Both services are beneficial to merchants but guarantee offers more benefits because merchant accounts remain whole when checks are returned due to non-sufficient funds (NSF). For a thorough definition on the difference between check verification and check guarantee, please read our blog Check Verification vs. Check Guarantee.

Check conversion services are flexible and can be installed at the point of sale or any other convenient location at the merchant's place of business. Point of sale works best for companies such as a retail store. On the other hand a back-office location may best be suited for medical offices and pool supply stores who have customers that mail-in checks as payment. The main difference between mailed-in checks and the point of sale is that customers sign their receipt in-store, whereas mailed-in checks have no customer present to do this. 

Check conversion services help merchants because they expedite check handling. This is true because the authorization and depositing process occurs in-store, which eliminates trips to the bank. Conversion services are also beneficial because NSF checks are identified quicker and the collections process can be started sooner. Ultimately, they help merchants get paid quicker.

In the end, check conversion services are a win-win situation for both consumers and merchants because they allow consumers to continue to write checks while merchants are able to verify and guarantee payments faster, increase their sales and save time and money in the process.