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Check Processing & Payments Information

Why Are Checks Declined?

Posted by Joe Gargiulo | Tue, Sep 06, 2016 @ 01:57 PM

“One of the primary reasons merchants change check processing firms is that they are receiving a greater number of declined checks,” said Senior VP Charles Dortch III. “CrossCheck approves more checks than the competition because we are willing to take more risk.” The 33-year-old company satisfies merchant needs while remaining why are checks declinedsuccessful by offering solutions that incorporate its vast experience in the financial services industry, the latest technology and winning strategies that have evolved with the times.

Merchants benefit in many ways, but none is more significant than CrossCheck providing them with the tools they need to increase sales. Simply stated, CrossCheck helps complete transactions that would otherwise not happen, resulting in greater profit for businesses.

 

The dynamics of check authorization begin with the motivation behind hiring a check processing service and end with the reasons for declining checks, including many that are common to all check processors. While it is helpful to understand why are checks declined, CrossCheck prefers to focus on their acceptance. As the saying goes, “when life gives you lemons, make lemonade.”

Why hire a check processing company?

In theory, payment processors provide business functionality that most companies are unable to fulfill on their own in a cost-effective manner. CrossCheck offers industry-wide services such as check guarantee, check verification and electronic processing as well as unique solutions addressing specific needs: CrossCheck’s Auto Industry RDC Solution (C.A.R.S.), Check on Delivery (COD) for companies that deliver goods, Plus Sales (a service that guarantees checks declined by other processors) and many more.

In a perfect world, merchants conduct smooth, everyday operations while payment processors work behind the scenes to help finalize payments. In a less-than-perfect world, merchants are plagued with an unreasonable number of returned checks and wonder why they hired a specialist in the first place.

Why Do Some Guarantee Companies Decline Checks?

  • Out of state checks — Merchants are better served by accepting checks from local consumers.
  • Drivers License — Problems include expired, invalid, or stolen licenses.
  • Too many checks — The check writer has written too many checks during the risk period of a specific merchant.
  • MICR code — Issues with the magnetic ink character recognition code (unreadable, fake accounts, etc).
  • Over the limit — The check amount is over the amount authorized by the processor.

The final reason for declining checks is significant because several merchants recently turned to CrossCheck after their processor lowered the dollar limit for certain types of checks. No problem here — the merchants switched to CrossCheck and resumed smooth operations.

Reasons for Using CrossCheck

“We are in the business of helping merchants complete sales more efficiently,” said Dortch. “We have the highest limits in the industry while merchants often say our response rate is faster than the competition and our approval process is much simpler.”

The bottom line is that merchants complete more sales working with CrossCheck knowing they have the added benefit of premium services in their back pocket. In addition to the premiums mentioned above, CrossCheck also offers Stop Payment, Medical RDC, and Multiple Check. Download our free guide, "Payments as a Profit Center," to learn how these products can provide increased profits and peace of mind at your place of business.

auto dealer sales, auto dealer payments, auto dealer profits

Topics: CrossCheck

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.