When merchants sell something, they expect to get paid in full right away in order to generate more revenue. They don’t expect to have the payment fail for one reason or another, and never get the money. This seems pretty obvious, but every payment system has failure points, except perhaps the Federal Reserve Wire Transfer system (and even this is not immune from fraud).
In this short piece, we will explore the concept of check guarantee, and how check guarantee providers manage their business to meet predictable targets for payment failure, salvage, and write-offs. Not every business is a candidate for check guarantee, but for those that are, such as car dealers and building supply companies, they can’t live without it!Read More