CrossCheck Blog

CrossCheck Blog

Check Processing & Payments Information

ISOs: Be a Check Services Problem Solver

Posted by Travis Powers | Thu, Aug 29, 2013 @ 10:00 AM

ISO BucksI’ve been involved in check processing for a long time, yet it still surprises me when I meet someone in the industry who doesn’t understand the value of a check guarantee service. It’s not just about risk, though check services do a good job of reducing risk. It’s not even about bad checks and check services certainly minimize those. Having a check service is about enabling sales and problem-solving. In fact, I think checks are the best solution out there to make sales happen that wouldn’t normally happen. Better than credit cards, better than debit cards, and much better than good old cash. Let me explain…

Your merchant tells you no one writes checks anymore. Not true. More people have checking accounts than have credit cards. Consumers are no longer in love with their credit cards and sometimes the debit card just doesn’t get the job done. As consumers, we just don’t carry much cash. Check payments can offer customers payment flexibility they won’t get with other payment methods. A Multiple Check service means more cars off the lot, more repairs get done the first time and your customer gets to take the sofa home today. 

Your merchant tells you they don’t want to accept checks. It’s too much hassle running to the bank each day to deposit checks, they say. And they’ve been burned in the past by a couple of bad checks. Check services can eliminate those problems and save your merchant time and money. Electronic check processing services such as remote deposit capture eliminate trips to the bank and let your merchant make a “desktop deposit” at a time convenient to them. Maybe that’s in the evening after the store (and the bank) closes for the day. If the store has several locations, they can all deposit into the same account, making for easier accounting. 

Bad checks? A check guarantee service will reimburse merchants for those bad checks. Rather than turn down checks from customers that aren’t regulars, or out-of-town or out-of-state customers, a merchant can approve the check and accept it with less worry.

Your merchant tells you they accept debit and credit and they don’t want to pay more for a check service. How about paying less? Check services, even guarantee services, are less expensive than credit card processing and they avoid the interchange fee your merchants are so upset over. Equipment needs are minimal as many services can approve checks over the phone or through the Internet. Debit cards, though convenient, have primarily replaced cash. Large transactions with debit cards can be a challenge as daily limits set by the bank mean the customer can’t use it for a down payment or to buy a new appliance. They can with a check.

As an ISO or MLS, you’re in a position to be a problem solver for your merchants and having check services in your arsenal helps. Creating this value for yourself means you become an important business relationship for your merchants. And in the long run, that can solve some problems for you, too.

 

IOS & Reseller Consulation

Topics: Independent Sales Organization (ISO), Electronic Check Processing

Written by Travis Powers