CrossCheck Blog

If you've ever wondered about the difference between check verification and check guarantee services, then imagine this scenario: a customer presents you with a check to pay for goods or services rendered. Whether you’re in the finance department of an auto dealership; a veterinarian caring for a sick dog; or a heavy equipment dealer receiving payment from a contractor building a new apartment complex, the payment you receive is crucial to the continued success of your business. You inherently trust the person giving you the check but you’d like to know – to whatever extent possible – that the funds will reach your bank account without any trouble. Trust…but verify, which is the very reason that check verification and check guarantee services exist.

Mobile check verification is the perfect way for a multitude of merchants and entrepreneurs to accept checks using a mobile phone or smart device. Imagine it’s Black Friday and the furniture store has slashed prices by as much as 50 percent in many cases. People have lined up in front of the store waiting for the doors to open. A woman is hoping to be the first to get her hands on the brown leather La-Z-Boy her husband has been eyeing for weeks. She’s not the only one.

Seven-year-old Ralph (or Ralphie, as his friends call him) comes into your office. You’re his optometrist and you’ve just fitted him for his first pair of glasses. Ralphie has struggled in school because of headaches and vision problems, which in some cases have even resulted in behavioral problems because he feels unsure whenever he is asked to read something off the board at the front of the classroom.

Increased consumer awareness of environmentally friendly solutions like water-saving appliances, as well as smart technology and expansion into HVAC and more will boost opportunities for plumbers. More opportunities will lead to higher revenues, both in terms of size of individual tickets and number of customers, which will likely prompt a need for more solutions to accepting payment. With the Multiple Check and Check Guarantee services, Cross-Check can help plumbers accept larger checks with full knowledge that the payment will be securely deposited in their accounts.

A recent study by the Federal Consumer Financial Protection Bureau (CFPB) has determined that the issuance of credit cards has declined significantly since the start of the COVID pandemic. According to the study, the success rate of credit card applications dropped from 45 percent in January 2020 – the start of the COVID pandemic – to approximately 30 percent a few months later.

Before I entered the business world, accepting a paper check seemed simple. I made sure the value written on the check was correct, endorsed the back and it was done … right? Check transactions change when you’re a merchant. Whether it be receiving invoice payments or accepting checks at the point of sale, you have to consider more than just the written value and a signature. An important aspect to consider is mitigating the risk of accepting bad checks. As a self-proclaimed "finance geek" I can confidently say I know a thing or two about the payment solutions available to business owners, especially those designed to mitigate risk. Luckily, I’m here to tell you about how to look for common warning signs on your own and the services available to verify your checks.

Imagine a world where businesses and consumers could scan checks, upload the images via the web, and quickly determine if the checks are valid. Better yet, imagine if those same stakeholders could continue the process by depositing the checks, all without visiting a bank or leaving their offices. It could be a foolproof system, but on this date, April 1, (aka “April Fool’s Day”), the reality is that free online check verification doesn't exist ― never has and probably never will.

When it comes to the question, “Guarantee or Verification?” there is no single right answer. Each merchant has different needs. Both services help businesses increase sales and mitigate risk, but there are fundamental differences. Verification is basically professional advice that works best for some merchants, but they will need to conduct their own collections if a check fails. Others will opt for check guarantee — the assurance that even if the check bounces, the sale will hold, the merchant will get paid, and the consumer will be given another chance to make good. The merchant is free to choose either one, but normally the choice depends on the amount of the check.

We get calls from merchants who want to know the difference between check verification and check guarantee. The typical scenario is that the merchant takes a bad check, tries to collect on it themselves, and discovers how difficult it is to do that. Other times, a check is missing from a bank deposit, or the merchant is just tired of taking an hour off to go to the bank every day. They have heard about check service companies and now they want to know how they can benefit from using one. Article Summary Check Verification Versus Check Guarantee Basic Check Guarantee Electronic Check Processing Some Merchants Prefer Checks How Check Guarantee Helps Protect Merchants How Check Guarantee Helps Consumers Additional Protection for Merchants There are two time-tested ways to deal with this. They are check verification and check guarantee.

Check machines are a very common and often overlooked piece of technology used by merchants and other businesses today. Checks continue to be a preferred payment method for a sizable portion of consumers for certain purchases. Consequently, vendors should be equipped with check machines to streamline their check transaction process and mitigate the risk of bad checks.