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Check Processing & Payments Information

The Magic Check Verification Tool

Posted by Joe Gargiulo | Mon, Nov 21, 2016 @ 10:18 AM

check verification

Miracles do happen and sometimes dreams come true, even with the magic check verification tool.

A customer writes a check for $30,000 that a merchant prepares for deposit. After entering data into a check processing system, LED lights flash, and the paper check is slowly pulled into a desktop image. Only the trailing edge of the check is now visible beneath an interior green glow. After a few seconds of anticipated “techno-humming,” the check is slowly ejected.

Meanwhile, the system displays details of the transaction, including the opportunity for the merchant to select “Submit for Approval.” The merchant returns the check to the customer who leaves with a smile on his/her face and their newly acquired purchase.

When the merchant reviews his/her online checking account in 48 to 72 hours — voilà — the magic check verification tool ensures that funds have been deposited and the company receipts have increased by $30,000.

The Anatomy of Magic Check Verification

check verificationThe magic check verification tool is somewhat imaginary, but the desktop scanner does initiate a miraculous transformation of paper checks into funds. Make no mistake, though, merchants can improve their revenue streams with two fundamental payment solutions that are underwritten by electronic check processing:

  • Check Verification — Merchants submit required information from the face of a check and then receive one of two responses from their check processing company: “Recommended” or “Not Recommended.”
  • Check Guarantee — Checks are approved at the point of sale via terminal, phone or web, and later deposited by merchants or converted to an ACH payment to their account. If approved checks are returned unpaid, merchants submit them to their provider for reimbursement.

The Evolution of Electronic Check Processing

Introduced in 1999, an early installment of electronic check processing used desktop readers to capture bank and checking account data. Merchants then entered amounts and consumer information before the start of electronic processing. Consumers received printed authorizations and checks were stamped “VOID, Not Negotiable” to complete transactions. This approach was not widely used by merchants and a new system was soon introduced to the marketplace.

After Congress passed the Check Clearing for the 21st Century Act (Check 21) in 2002, merchants began using Remote Deposit Capture (RDC) to scan checks in desktop imagers that were later converted to data files before electronic processing. RDC revolutionized the operations of depository banks belonging to the Federal Reserve as well as the payments industry.

The Latest Magic Check Verification Tool

Today, bank tellers scan checks at the counter while customers are still present. CAR/LAR software reconciles the data printed and hand-written on checks, spots fraud and performs duplicate detection. Balancing is check verificationconducted in real time, enabling customers who deposit checks drawn on the same bank to get same-day availability via extended deadlines. Consequently, paper checks are now processed faster than ACH transactions.

Over the years, CrossCheck has added bells and whistles to refine what might be considered the magic check verification tool. Check Verification provides authorizations to reduce the likelihood of returned checks and takes the worry out of accepting checks at the point of sale with ease.

Check writer information is entered in the system, and a recommendation to accept the check or not is instantly reported back to the merchant via phone, terminal or the internet. Checks are occasionally returned from the consumer’s bank unpaid, and it is up to the merchant to take action and collect funds.

Check Verification can ultimately grow sales and revenue as it broadens a customer base for those preferring checks over other types of payments. This service also provides the ability to:

  • Accept more checks with greater peace of mind
  • Utilize existing equipment
  • Receive 24/7/365 customer support at no additional charge

Now, that's the kind of magic one can believe in. Download our free guide to learn more.

 

Check Verification Insider's Guide

Topics: Check Verification

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.