Online check verification is a service that businesses can utilize to verify that an accepted check is valid. This purchased service is usually advertised as free to hook potential customers, but companies often charge customers after a free trial or transaction introductory offer runs out, according to CrossCheck.Continue Reading
Check verification allows businesses to instantly determine the validity of a check or draft being presented by verifying the bank routing number and bank account status, explains Lyons Commercial Data. This reduces the likelihood of returned checks and takes the worry out of accepting checks at the point of sale. With check verification, authorization and recommendation occurs in seconds via phone, terminal or Internet.
A common myth regarding check verification is that individual consumers can be served by a check verification service. This is untrue, according to CrossCheck. To utilize a reputable check verification company, an individual must be in business and have a merchant account and the necessary hardware, which can only be purchased or loaned by a check verification service. Customers also have to sign a service agreement.
Check verification can benefit businesses by helping them improve cash flow; support point-of-sale, online or phone transactions; reduce processing costs; and reduce bank fees. Examples of businesses that utilize check verification include retail stores, financial institutions, payment processors, check guarantee/check cashing service providers, and companies that do monthly check drafting or billing, notes Lyons Commercial Data.Learn more about Personal Banking