Check guarantee usually costs between 1 and 2 percent of the transaction amount. The exact rate depends on the industry, transaction size, risk level, and how many checks or ACH payments your business processes. For many companies, the cost is similar to or lower than credit card processing fees. The difference is that approved checks are protected from loss.
What Influences the Cost
Every business accepts payments differently, so pricing is customized. Common factors include:
Businesses with consistent volume and predictable approval patterns may qualify for more favorable pricing.
What the Fee Covers
A check guarantee fee includes more than just payment processing. It typically covers:
If a guaranteed payment is approved and later fails, the business still receives the funds.
How Different Industries Use Check Guarantee
Payment needs vary by business type. Examples include:
Auto Dealerships
Dealers use check guarantee to protect large down payments and high dollar transactions that cannot be risked. Many also use it during evenings, weekends, and peak sales hours when verifying funds manually is not realistic. Guarantee helps streamline delivery and prevents deals from being delayed due to funding uncertainty.
Furniture and Flooring Retailers
These businesses often process high value payments where a single transaction represents an entire order. Profit margins can be narrow, so one failed payment may not only wipe out profit, but also leave the business covering product cost, delivery, and installation expenses. Guaranteed payments protect that revenue and allow retailers to schedule delivery or installation without waiting for the payment to clear.
Veterinary and Medical Providers
Healthcare environments often extend courtesy billing or flexible payment arrangements. Protecting these payments helps reduce patient balance write offs and allows staff to focus on care rather than collections.
Heavy Equipment and Specialty Retail
With fewer but larger payments, one failed transaction can significantly impact cash flow. Guarantee provides predictability, especially for customers who purchase seasonally or in industries with fluctuating income.
Cost Comparison
Below is a simple way to compare common payment types and average rates.
|
Payment Type |
Typical Cost |
Financial Risk |
|
Credit Cards |
2 to 3.5 percent |
Chargebacks may occur |
|
Check Guarantee |
1 to 2 percent |
Protected |
|
ACH without guarantee |
Low |
NSF, disputes |
|
Guaranteed ACH |
1.5 to 3 percent |
Protected |
|
Unverified checks |
No fee |
Full exposure to loss |
Many businesses view ACH as low risk, but standard ACH without protection can still result in NSF, disputes, or payment failure after approval. Guaranteed ACH removes that risk by protecting approved transactions.
Optional Features That Add Value
Some programs include features such as Multiple Check. With this option, all checks are written and approved on the date of sale, then deposited on an agreed upon schedule. The business remains protected as long as each check is approved. This gives customers payment flexibility without requiring financing or credit checks, which can help save the sale when full payment is not available at the time of purchase.
Is Check Guarantee Worth the Cost
For many businesses, yes. When the average transaction is meaningful and the risk of loss is real, the predictable revenue often outweighs the fee. One failed payment can cost more than months of guarantee fees.
Real Cost Examples
When compared to the cost and disruption of chasing a returned payment or absorbing a write off, the value is clear.
How to Get Exact Pricing
Final pricing depends on your industry, payment mix, and average transaction size. A short conversation is usually enough to determine where your business fits and which program aligns best with your goals.
If you want to see what pricing would look like for your payment environment, you can request a personalized estimate.