Quick Links: Home > Other Solutions > ...

Check Guarantee/Verification

Check Guarantee - What It Is, How It Works and Fees Involved

Check Guarantee is a program in which you are guaranteed to be paid on your checks. It is a type of insurance provided to merchants. A fee is charged to the merchant in exchange for the service of paying the merchant on any checks that are returned. There's no need to worry about accepting checks or collection on returned checks. Usually, the cost for this solution is about the same as credit card acceptance, however, some may offer it for a lower price. Check with your Merchant Account Provider for further details.

How Check Guarantee works is each check that you accept is verified. The check guarantee company lets you know whether the check writer has any outstanding unpaid bad checks. This is completed by running the check through a check reader or keying the check information and/or check writer into a terminal. If it shows that there are no outstanding checks in the system, the check guarantee company issues approval or an authorization number which means you are guaranteed payment for that particular check. You are also responsible for getting certain information about the check writer such as driver's license number and phone numbers.

Check Guarantee has been around for a while and it's nothing new; the Guarantee Processor charges the merchant a Discount Fee (percentage) on ALL checks they accept, usually around 1.50% (or in the range), and agrees to cover all returned checks, provided that the merchant has followed the Processor's Check Acceptance Rules. The fee scale varies by merchant type and the associated risk, but is rarely lower than 0.99%. A per item Transaction fee of around $0.15 to $0.35 is also charged. There IS often times a Monthly Minimum fee and always a Statement Fee, especially when dealing with retail check processing accounts. There may be a sign up/application fee, and also a programming fee to put the service on the merchant's Point of Sale Terminal (if applicable). A point of sale terminal and check reader is required if you're processing using a retail hardware solution - but there are also online/virtual terminal solutions that are now available if this is what your business needs instead.

Check Guarantee with Conversion means that not on is the check Guaranteed but it is also "converted" into electronic funds, this means that you do not have to deposit the check into your checking account; the funds will be deposited into your checking account for you automatically.

Check Verification - What It Is, How It Works and Fees Involved

Check Verification is a process that screens checks and check writers against a "negative database" of "bad check writers". This is done at the point of sale when the customer presents a check as payment. This service is performed using a point of sale terminal (or a real-time internet process) to access one of these large negative databases and compare the new transaction against the list. If the customer has a history of bad checks, the transaction will be declined. If they are not in the database for bounced checks, they are approved. Verification transactions usually cost around $0.15 - $0.35/per item. There may be a sign up/application fee, and also a programming fee to put the service on the merchant's Point of Sale Terminal. There IS often times a Monthly Minimum fee and always a Statement Fee, especially when dealing with retail check processing accounts. A point of sale terminal is required if you're processing using a retail hardware solution and a check reader is optional - but there are also online/virtual terminal solutions that are now available if this is what your business needs instead.

When accepting checks and debit cards a verification service should be all that you need. Check guarantee, in addition to using a verification service can actually cost you more money to process. Unless you yield a high sales volume each month to cover the extra cost for using a guarantee service, just stick with verification.

Check Verification with Conversion means that not on is the check Verified but it is also "converted" into electronic funds, this means that you do not have to deposit the check into your checking account; the funds will be deposited into your checking account for you automatically.

Who Needs These Solutions?

Check guarantee/verification is a benefit to any retail-type business that accepts checks. If your business cannot afford check losses, you will want to consider getting the check guarantee solution.

How Do You Get The Best Deal In Check Guarantee?

• Look for the most reasonable monthly minimums and statement fee.

• Look for the most payment times per month possible, this varies from one to four times per month.

• Look for online reporting.

• Look for the most liberal check acceptance policy out there.

• Make note of which checks ARE NOT COVERED under the program.

• Consider stop payment coverage.

• Try to get a system with a check reader that can automate the verification process (if you're using retail hardware).

• Find out if the provider has a set number of "bad checks" that they will consider before labeling your account as high risk.

How Do You Get The Best Deal In Check Verification?

• Look for the largest National Negative Database possible, there are fewer than 10 companies that are really big

• Make sure that the Negative Database has a large following of merchants in your geographic region

• Look for a verification system that provides not just negative data, but also positive data

• Look for a verification system that has sophisticated "Rule Sets"; these are programs that use logic to analyze many variable to screen out adverse risks as defined for specific business types

• Look for online reporting

• Try to get a system with a check reader that can automate the verification process (if you're using retail hardware).

Featured Check Solution - Thompson Merchant Services/GETI Check Processing

At TMS, Inc./GETI, we keep our rates competitive while maintaining the highest level of service for our merchants. We offer several plans specifically suited to meet your needs, regardless of what business you run or even where you're located.

The merchant not only saves on banking and accounting costs, but can significantly reduce losses from bad checks. A complete image capture of the check taken at the Point of Purchase is available. 

For those that desire tracking deposits and funds availability in real time, Global eTelecom offers an extensive 24 X 7 Online SSL Transaction and Deposit Tracking System. This powerful interface provides the merchant with the same tools used by Global eTelecom for tracking thousands of merchants nation-wide.

If you are looking for high levels of customer service, competitive ACH rates and reliable ACH processing, The TMS, Inc./GETI solution is the answer for you. Find out more about our online check services by filling out the pre-application form below or call us toll-free today at 1-800-298-9656 for a free telephone consultation.

100% Satisfaction Guaranteed

As a featured MerchantSeek.com processing solution, Thompson Merchant Services, Inc./Global E-telecom is fully committed to fulfilling our clients' needs and providing the highest levels of quality service in the industry. Their philosophy is "Client First." Protecting their clients' profits by reducing the cost of accepting checks is their #1 priority. We will provide a comprehensive check management analysis that provides insight to solutions and programs that are compatible with a client's business structure and philosophy. This affords clients the luxury of choosing a program tailored to protect their assets and image.

Ready to Start Processing?

Privacy Policy:  We will not share personal information with third party websites or providers, your information is confidential.

Are you a reputible Check Guarantee/Verification provider? Get in touch with us!