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VERIFICATION OF HIGH RISK CHECKS OR GUARANTEE ON HIGH RISK CHECKS

A program which guarantees payment on your checks is called check guarantee. It is somewhat like an insurance policy that is provided to the merchants. A small amount of fees is charged to the merchant while he/she exchanges the checks which have been returned. It is applicable on all checks. The banks promptly help their customers regarding their mistakes and confusions. There is no risk to the bank for not accepting checks. The bank accepts checks as well as makes collection on the returned checks. Credit card acceptance costs and the cost for this check guarantee system is the same. But due to competition amongst the banks, some of them may offer at a lower price. The merchant account provider may be of great help for any type of queries and clarifications.

Each check that is accepted by a merchant is verified through the systems. By doing this, a merchant can find out whether the check bearer has any exceptional unpaid balance or not. A check reader is used to verify the checks by running it in the terminal but it can also be done by just putting in the information of the check and about the check writer. A check guarantee company issues an approval only if the terminal shows that the bearer or the check writer has no outstanding balance in the system. Sometimes an authorisation number is provided by the company stating that payment has been guaranteed for the check. A merchant needs to collect the customers’ details to make payments. Certain information like driving licence, address proof and phone numbers of the customers are required as a record for the merchant.

Guarantee on check has been in existence since many years. Merchants are imposed discount fees on all checks that they accept when they go for bill discounting. There are rules and regulations set up by the Check Processor Acceptance System. About 1.50 percent on the check value is charged to the merchants for exchanging the returned checks and also during bill discounts. The banks are always ready to help the customers in whatever way possible but they charge a certain amount of money for the services as commission. A transaction fee of value $0.15 to $0.35 is charged as an additional service charge. In a retail merchant account, a monthly charge is fixed for all the transactions that have been carried out throughout the month. While retail account check processing is done, a statement fees, regarding the processing and printing, is also charged.

There is also another term for check guarantee which is called check guarantee with conversion. It not only guarantees the payment but it also converts the checks into electronic funds. Due to the current living standards and because of the reliability on electronic banking systems, there is no problem in depositing the check into the checking account. The funds will be directly deposited into the checking account automatically.

Check verification is done in order to screen the checks and the bearer against false databases. Contact one of our helpful account representatives to assist you in the setup of a high risk merchant account or offshore merchant account for a high risk merchant.