A lot can happen in an instant. For example, there is instant change, instant credit, instant gratification, instant mashed potatoes, and naturally, instant check verification.
Dictionary.com says the adjective instant is defined as “succeeding without any interval of time; prompt; immediate.” No argument here.
Instant check verification is paramount to many U.S. merchants though some would argue that instant coffee tops the list. Nevertheless, all would agree that the two most important factors are succeeding in an instant.
What is check verification?
Check verification is a merchant service that recommends whether or not they should accept specific check payments.
How can check verification be both successful and instant?
For check verification to be successful and instant, specialized vendors provide merchants with on-the-spot advice about whether or not to accept a particular check payment. That advice is typically provided over the phone or online using the words recommended or not recommended. Merchants use check verification to successfully complete transactions after receiving recommendations. All in an instant.
How reliable is instant check verification?
Only drawee banks can verify if there are sufficient funds in a particular checking account and it must be in real time while the merchant is physically in the bank. To provide a more realistic solution, payments processing vendors have developed a reliable system of making instant check verifications.
Using a combination of algorithms and databases (subscription-based and proprietary), companies score individual checks and make risk assessments in seconds after merchants submit a request. The databases cover a variety of parameters such as returned check records, checking account histories, checking account status, and information about individual check writers. All of these parameters factor into whether a check is recommended or not recommended.
Is check verification the same as check guarantee?
The simple answer is “no,” though the confirmation process is similar. With check verification, the experts simply advise merchants whether or not they should accept an individual check.
Check guarantee offers greater support. Check guarantee companies use nearly the same combination of algorithms and databases to provide warranty coverage that reimburses merchant for checks that are returned from a bank unpaid. The most basic service entails merchants mailing returned checks to receive reimbursement from providers.
A more merchant-friendly approach entails electronic check guarantee where checks are passed through digital scanners before transmitting them to their providers. All in an instant. Merchants may receive funding within 48 hours without leaving their establishment and are generally not even aware that a particular check was returned from the bank unpaid. Those losses are absorbed by check guarantee companies who generally have highly effective collection resources.
What type of merchants use check verification?
Check verification is cost effective for business models that sell a high number of low-ticket items. Examples include discount stores, dry cleaners, gas stations, oil change centers and some restaurants.
How much does check verification cost?
Merchants using check verification services are generally charged monthly service minimums versus nominal per-item transaction fees (whichever is higher).
CrossCheck Check Verification
CrossCheck has been offering reliable check processing resources since 1983. The company leverages that experience with an enormous proprietary database of check information to provide merchants with cost-effective check verification services. CrossCheck’s merchant customers always receive 24/7 customer service and tech support as well as loaner equipment at no additional charge.
Download our free guide to learn how CrossCheck can help increase sales and mitigate risk while saving time and money at your place of business.