TOBACCO CHECK GUARANTEE AND VERIFICATION
By using the Check guarantee program you
can be sure that you will be paid for
your checks. It is a kind of insurance
that is provided to merchants. A nominal
fee is charged for this service which
pays you on any check that is returned.
The merchants will not have to worry
about accepting payments in the form of
cheques or collecting returned checks.
Generally, this solution costs as much
as credit card processing solutions cost
you, but you may also get it at lower
prices. You need to go shopping to get
the best price.
This program works by verifying each
check before you accept it. The company
will inform you if there are any bad
checks issued by the payer. This is done
by passing the check through the check
reader or manually keying in the check
information. Then the system determines
whether there are any outstanding checks
or bad checks against the issuer. If the
outcome is positive the company will
issue an authorization number
guaranteeing the payment for that check.
You also need to get additional
information about the writer of the
check like phone numbers or license
This program is not new. The processor
who is guaranteeing the checks charges a
discount fee on every check they accept.
The discount fee is about 1.5%. The
advantage is that if any checks are
returned then the guaranteeing company
will pay for it. The fee charged varies
by the associated risk and the merchant
type; however it is never lower than
0.99%. You will also have to pay the per
transaction fee of about $0.15 to $0.35.
Just like with credit card processing,
you have to pay a minimum monthly fee
and also a statement fee. You may also
have to pay an application fee and a
programming fee. The check reader and
POS terminal is required if you are
processing at a retail store.
There is also another service: “Check
Guarantee with conversion”. This service
will not only guarantee your payments on
your checks but it will also convert the
checks in to electronic funds.
Therefore, you don’t have to go to a
bank to deposit the check.
How to get the best deal?
Search for reasonable statement fee
and monthly minimums.
Search for the most number of
payments each month. It ranges from
1 to 4 times.
Search for online reporting.
Search for a moderate check
acceptance policy in the market.
Find out whether all kinds of checks
are covered under this program.
Find out what happens in case of
Getting a system with the check
reader is better because the whole
process will be automated.
Find out how many bad checks it will
take to label your account as a high
You should first find out whether your
business needs such a service and only
if absolutely required you should sign
up for it otherwise it will drain your
profits away. Contact
one of our helpful account
representatives to assist you in the
high risk merchant account or
offshore merchant account for a
high risk merchant.