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Check Processing & Payments Information

Declined Checks by Competing Companies

Posted by Joe Gargiulo | Wed, Jun 14, 2017 @ 01:37 PM

declined checks by processing companies

CrossCheck has two telesales offices as well as field representatives all over the country who provide payment solutions to auto dealerships, dental and veterinary offices, home furnishings stores, building supply centers, specialty retailers and other merchants.

Those sales people talk to hundreds of merchants daily about increasing sales with effective check processing services. On any given day, at least one of them will hear a merchant say, “Our current guarantee company doesn’t decline too many checks, only the big ones.” The dialogue continues.

“Only the big ones?” echoes the sales rep with emphasis on the word “big” as in big loss of revenue. “Seriously, how much sense does it make to lose big sales opportunities?”

The Cost of Declined Checks

A one-to-one ratio exists between declined checks and the amount of future sales needed to make up the difference. For example, merchants receiving two declined checks per month averaging $5,000 each will need to sell an additional $10,000 in goods or services to realize a full recovery.

Furthermore, the cost of declined checks transcends the lost revenue when merchants consider their time and energy needed to source and finalize additional sales as well as the potential harm to existing or future relationships with consumers or business customers. As bad as this sounds, the situation can be much worse if merchants experience a high rate of declines. Consider this hypothetical scenario.

Aardvark New Cars & Trucks — a family-owned operation in the Dallas-Fort Worth area — is experiencing a 10% check-decline rate on its average of 150 vehicles sold each month. Assuming those checks represent the down-payment portion of the $34,968 transaction price per light vehicle (Kelly Blue Book, February 2017), the dealership is losing $524,520 in gross sales each month. Those figures translate to the need for 15 additional sales each month — no small task.

Why Do Competing Companies Decline Checks?

The blog article “Why Are Checks Declined?” (September 2016) lists several reasons for declining checks: out-of-state checks, problems with drivers licenses, too many checks written by one consumer during a merchant’s risk period, issues with the MICR code (unreadable digits, bogus accounts, etc), and check amounts over the authorized limits of the processor.

This last item is specified in merchant service agreements, but some processors sometimes reduce the limits to protect themselves, causing an increase in declined checks for merchants. CrossCheck addresses this issue with favorable terms that minimize check declines.

“We are in the business of helping merchants complete sales more efficiently,” said Senior VP Charles Dortch III, “and have the highest limits in the industry. Simply stated, CrossCheck approves more checks than other guarantee companies because we are willing to take more risks.”

Say “Yes to Checks”

CrossCheck has a “Yes to Checks” phone line (888-YES-2CHX) with incoming calls transferred to the company pipeline specialist in the Marketing department. About once each week, he fields a call from a merchant interested in CrossCheck guarantee services because his/her current vendor declined one too many checks, including large ones that really hurt.

Known affectionately as the “Y2C line” around the office, the Yes to Checks line has been the source of happy working relationships between merchants and CrossCheck since 2004. Whether they are newcomers to the world of check guarantee or companies switching providers, merchants have found CrossCheck to be a reliable payment processor since the company was founded in 1983.

If you’re a merchant looking to increase sales potential at the front end of the process, then “say yes to checks.”

CrossCheck has “out-of-the box” programs to help a wide variety of merchants as well as premium services that may be added to address specific needs. CrossCheck even has a program that guarantees checks declined by other check guarantee companies.

Plus Sales is a stand-alone program that merchants use in conjunction with their existing provider. When the provider declines a check, merchants submit the check to CrossCheck for 24/7 approval via phone or web. Learn more by downloading a free guide.

Plus Sales Check Approval Program Guide

Written by Joe Gargiulo

Marketing Specialist Joe Gargiulo has 25-plus years in marketing, communications and copy writing. As a writer, he enjoys connecting story leads to all aspects of the human experience.