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Why Businesses Need Check Guarantee Services

Posted by Joe Gargiulo | Tue, Jul 18, 2023 @ 11:05 AM

iStock-1166079240Businesses need check guarantee services because they offer protection from the financial loss of accepting bad checks. Those checks are returned from the bank unpaid for a variety of reasons, including insufficient funds (NSF), closed or fake bank accounts, and stop payment orders.

CrossCheck, a leading provider of check guarantee services in the U.S., has garnered a reputation for offering cost-effective solutions to check acceptance and processing since 1983.

The people behind CrossCheck are so committed to developing check guarantee services … okay, maybe even a little obsessed about it at times … that they call it the “Guarantee Factor.”

Over the years, CrossCheck has proven that check guarantee services allow merchants to accept a greater number of checks, a process that is ultimately better for business vitality and growth. CrossCheck even approves checks declined by competing check guarantee companies.

iStock-1368024808CrossCheck has thousands of merchant customers who also believe in what we do — from a number of well-known mega-groups in automotive retail, veterinary care, building materials, automotive repair, and home furnishings — to family-owned local businesses throughout the land.

Despite all of the above factors, some merchants still don’t believe they need check guarantee services.

So what are their concerns?

Glad you asked. Here is a list of the most common objections followed by our responses.

We don’t accept checks.

Merchants who do not accept checks often have a history of experiencing financial loss from bad checks. Sadly, those merchants are turning away good business because a significant number of buyers still prefer paying by check. Once merchants resume accepting guaranteed check payments, they can sell to buyers using any form of payment, whether it is cash, check or charge.

Customers don't write checks anymore.

Over the years, the Federal Reserve Payments Study (conducted every three years) has shown that only ACH surpasses checks as the largest type of non-cash payment on average. Checks are preferred by consumers for buying big-ticket items as well as merchants in some major product categories. Those business types (e.g. auto dealerships) often add surcharges on top of the purchase price to cover the interchange fees imposed by credit card processing companies.

Federal Reserve Payment Study

Accepting checks is not cost effective.

Merchants who don’t believe in the cost-effectiveness of checks are turning away revenue because many buyers still prefer using checks over cash or cards. Those merchants share similar concerns with the ones who have a history of experiencing loss from accepting bad checks. By adding check guarantee services as a payment option, merchants can start accepting any form of payment.

We don't get too many checks.

The effectiveness of check guarantee services is not a function of merchant check volume. Rather, it’s more about making the most of a proven payment method. Check guarantee services provide warranty protection that ultimately helps increase sales and reduce risk while saving time and money. It can benefit merchants whether their total monthly check volume is $5,000 or $500,000.

We rarely get returned checks.

Check guarantee services provide additional value beyond warranty protection. CrossCheck, for example, has premium services that offer a variety of versatile payment solutions, including one to enhance the consumer experience. Multiple Check gives consumers extra time to pay for big-ticket purchases using 2 – 4 checks over a specific period (usually 30 days, but sometimes up to 90 days).

We only take checks from recurring customers.

iSCare CreditNew customers who are turned away because they want to write a check represent lost profits if they choose to purchase from a competing merchant who is willing to accept their check.

CrossCheck services enable merchants to guarantee a wide variety of business and personal checks without turning away potential customers. The decision to not accept checks may have far reaching ramifications because those customers as well as their family and friends may choose to shop with the competition.

We offer Care Credit and don't need to accept checks.

Care Credit can help customers with good credit, but what happens to customers at dental and veterinary offices whose credit is less than perfect?

CrossCheck’s Multiple Check solution provides them with 30 extra days to complete their payments without credit or credit checks, and they get to settle their balance on the day the checks are written.

If we get a returned check, we send it to the magistrate or sheriff.

Using the criminal justice system to collect bad checks is not recommended because it wastes time and energy. With CrossCheck standing behind each transaction, approved checks are funded to merchant accounts in 48 – 72 hours whether the checks are good or not. If there is ever an issue collecting on a bad check, then CrossCheck is responsible for conducting collections instead of the merchant


We don't want to pay for something we handle ourselves.

Merchants choosing “do it yourself” collections for returned items often have under-performing collection rates. Other merchants simply take too long to recover funds or are not able to collect any funds at all. Whatever the situation, check guarantee services provide cost-effective solutions at the front end that surpass in-house collections at the back end.

What are the Benefits of Check Guarantee Services?

Check guarantee services help increase sales and mitigate risk while saving time and money. CrossCheck offers the highest check approval rates in the industry and its check processing services are more cost effective than card processing services. Other benefits include:

  • Check approval anywhere in the country as well as Canada and U.S. territories.
  • Complimentary account set-up, staff training, and equipment programming.
  • Free Customer Service and Tech Support any time of day or night, even on major holidays.
  • Optional enhancements offering individualization as well as greater protection and flexibility.
  • Complimentary loaner equipment.

Merchants have the option of submitting checks to CrossCheck for approval via our toll-free phone number, the Focus desktop app, or the CrossCheck Mobile Pay app for smart devices.

Download our free guide to learn how CrossCheck Check Guarantee can help your business today.

Check Guarantee Insider's Guide

Topics: Check Guarantee

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.