Electronic check verification is a handy service if your business accepts a lot of checks. Traditional check acceptance exposes your business to risk of loss due to bounced checks. With an electronic check verification service your risk is reduced through funds verification prior to rendering service or providing goods.
How does electronic check verification work?
The electronic check verification system includes a check scanner. There are multiple check scanners available and most also function as a credit card terminal. When a customer hands you a check to pay for goods or service the check is either run through the check scanner or the routing and account numbers are typed into the terminal. The scanner then communicates with the customer’s bank to make sure that the customer has enough money in their account to complete the transaction. You will receive an authorization if the transaction is successful. If the customer’s account does not have enough money you will receive a decline.
This process gives you peace of mind when accepting checks. No longer will you have to wait for your bank to tell you that a check cannot be cleared resulting in a loss for your business. In addition to the electronic verification service there are a couple more services that are available.
Both these additional services will be discussed in detail in the next postings so please look forward to that. If you would like more information and pricing for our check verification platform simply click.