“For every check there is a reason, and a time to every purpose under heaven” — not exactly the King James version of Ecclesiastes 3:1, but certainly relevant to the subject of check verification machines.
Play along s'il vous plaît.
Check verification machines are what merchants use to determine whether or not a specific check is recommended by a check guarantee company such as CrossCheck.
All check processing machines — including check verification machines — became necessary after the Check Clearing for the 21st Century Act (Check 21) went into effect in 2004. Check 21 allows banks to process checks electronically instead of exchanging traditional paper versions with other financial institutions via nightly air service.
How Do Check Verification Machines Work?
Merchants use check verification machines (i.e. check scanners) to create a digital copy (a “substitute check”) of a paper check which is the legal equivalent of the original. They have the option of returning the original check (marked “VOID” by the scanner and no longer valid) to the person making the payment or shredding it.
The merchant then prepares the transaction by entering information associated with the check into a payment terminal or check processing program before transmitting the image and information to their check verification provider. Voila!
How Does Check Verification Work?
Check verification is not a do-it-yourself process because only financial institutions and companies such as CrossCheck are authorized to access checking account information. Using a variety of databases and algorithms, these organizations score check writers and make risk assessments before making a determination.
A database such as CrossCheck's may contain details on millions of check writers: info on closed accounts, check-writing histories, and individuals who have offered invalid checks in the past.
To verify a check, merchants enter checking account information at their place of business before receiving one of two responses: Recommended or Not Recommended.
Which Check Verification Machines Are Suitable for Merchants?
CrossCheck uses a handful of dependable check verification machines and has a no-fee loaner equipment program for merchants who do not own compatible scanners. The loaner program includes servicing or replacing if either is ever needed.
Panini I:Deal — a popular single-feed check scanner designed specifically for the needs of small businesses that electronically process low volumes of checks.
Digital Check CheXpress 30 — bank-quality check scanner that is recommended for low-volume check capture environments.
RDM EC7500i Series — recommended by for low-volume use by accounts receivable departments, healthcare offices, government entities and retail businesses.
MAGTEK Excella STX — a full-color scanner with solutions for auto and single-feed operation as well as integrated, secure card reader authenticators.
Final Words on Check Verification Machines
CrossCheck takes the worry out of accepting check payments. Merchants have the option of contracting Check Verification or Check Guarantee services. What is the difference?
Both services help businesses increase sales and mitigate risk while saving time and money, but there are fundamental differences in the services.
Check Verification simply advises merchants on check status. They assume their own risk in accepting recommended checks and must cover the cost of items returned from the bank unpaid or conduct their own collections.
Check Guarantee offers more protection because it reimburses merchants if checks are returned from the bank unpaid.
Download our free guide to learn how CrossCheck’s Check Verification service can help your business improve the bottom line, and ask about our no-fee loaner program for check verification machines!