Check Services
Check services are programs that are implemented by businesses to assist them in quicker payment options dealing with check processing, check guarantee, check collection, and direct deposit. These options have eliminated the need for paper checks and have greatly reduced a business' risk for fraud when accepting checks.
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Check Use on the Rise
According to studies performed, paper checks are the most commonly used form of payment for goods or services. It is estimated that over fifty billion checks were written last year alone. This figure is supposed to double within the next few years. More than eighty percent of consumers enjoy the convenience of using paper checks while they are shopping or running errands. Over sixty percent of the purchasing population does not have a major credit card; therefore, their main form of payment is a paper check. People are even using their checks to pay for twenty percent of their online transactions. Check use is on the rise, causing businesses to worry about fraud. With the use of personal computers, blank check paper, and an at-home printer, fraudulent check use has increased alarmingly by five hundred percent according to nationally accredited banks. Technology has made it easier for counterfeiters to pass off fraudulent checks as legal tender. If a business receives a fraudulent check, they are stuck with the headache of recovering the funds and having to pay re-deposit fees to their bank. This is why businesses, either company, corporate, or individual have been switching to the convenience check services. Check service organizations offer a fast and simple way to process, deposit, verify, guarantee, and collect on any check electronically. This takes the so-called fear and worry out of receiving bad checks.
POS Services and Check Online Services
A POS Service, or point of sale service, allows a merchant to accept a check payment at the initial time of sale. The way in which this check service works is that a computer system scans the numbers at the bottom of a check and batches those numbers like it would a credit card. Then, the system prints out a receipt for the customer to sign. A receipt is given to the customer for their records and one is left with the merchant. This service uses checks like credit cards, but without the credit card processing fee. The business does not have to buy any additional equipment, as this service can be offered to consumers by using a standard debit card or credit card processing machine. This is an easy process for the consumer and the participating business, as it allows for automatic withdrawal of funds from the consumer’s banking account directly into the merchant’s business account.
Businesses are able to process checks over the Internet or phone by using Check Online Services. Check Online Services allows checks to be processed by merchants with the simple step of using an Internet web browser. This means that the merchant can process and accept checks online instantly. Payment can be directly accepted through your website or Internet site. This check service is also helpful for telemarketers, as it allows companies to accept checks over the phone. With this check payment option, businesses no longer have to deal with the-check-is-in the mail syndrome.
Check Guarantee
Check service companies often offer a check guarantee on all received and processed checks. Businesses are able to rest assured, as this service nearly eliminates any negative revenue accrued from bounced checks. Check insurance or check guarantee, as it is commonly called, works by the customer and merchant providing basic information. This information is either put into a hand-key terminal used for credit cards, a point of sale terminal, or into computer software. The information is instantaneously processed, and the merchant is notified that there are sufficient funds in the purchaser’s account so they can proceed with the sale. This check payment service is much like using a credit card. Merchants benefit from it, because it takes the hassle out of bank trips, and customers enjoy the convenience of not having to fill out a check. An image is stored of the customer’s check during the process. This check service costs less then the use of a credit card. Merchants are put to ease from the worries of fraudulent or non-sufficiently funded checks.
Check Verification
Check verification is part of a check services program that allows companies or merchants to avoid the hassle of bad checks before they are even accepted. This service can be done in a matter of seconds and can be verified at the convenience of a point of sale terminal. A checking account number is read off a customers check, and then the number receives verification through a National Database containing over forty-six million accounts. The National Database, when accessed, evaluates the status of the check writer and distinguishes what their level of credit worthiness is. This check payment service is a merchant’s best line of defense to eliminate the loss generated by bad checks. Check verification erases all fees assumed by recovery cost by slimming down the merchant’s chances of accepting non-sufficient checks from the get-go. The technology used by check services allows the status of credit to be summarized right away, therefore enabling the merchant to say yes to good checks and no to bad checks. Checks that are accepted will be processed and directly deposited into the merchant’s account. Customers that try to write bad checks will be turned down and must find another way to pay for the goods and services they wish to purchase
Check Recovery
Check recovery allows businesses to achieve over an eighty-percent success rate on the recovery of non-sufficient checks that were written by the customer and accepted by the merchant. With this check service, businesses are able to shield themselves from the negative loss of income generated from the writing of bad checks. With check recovery, a business is able to recover the amount of a non-sufficient check. This process is designed to be fast and efficient for the merchant, but it also is designed to minimize the embarrassment a customer, who wrote the check, may feel.
The Automated Clearing House (RCK) process recovers any funds that are reestablished through this check service. The RCK process is known for its fast recovery rates and high levels of success. The negative funds will be recovered through a software program that automatically withdraws the amount lost from the customer’s checking account when they receive their next paycheck. The system operates by monthly pay periods allowing you, the merchant, to directly redeposit the regained revenue into your banking account electronically. With this check service, businesses can discard the old methods of collection and benefit from this service that only costs them mere pennies. This is a less expensive option than the use of procuring payments through credit or debit cards from customers.
Check Collection Services
Check services has found a way to end the headache of recovering non-sufficient funds used to purchase goods or services. Many businesses or merchants dread the idea of having to go about a collection due to a bad check. The business may have to contact the customer who wrote the check, by either phone or mail. Then, once the customer is contacted, the business has to wait for another check to be written, mailed, and then processed. This causes businesses to play the what-if game. What-if the second check also comes up with insufficient funds? What if the customer does not reply to the business? What about the loss the business faces if they are unable to recover these funds? As a last option a business may turn to a collection agency to help them contact the customer about a bad check. This requires patience and consumes valuable time.
With a simple check collection plan, the amount of acceptance losses is greatly reduced much to a business’ relief. Check collection services are a final game plan to recover insufficient check funds that cannot be reestablished through the above-mentioned RCK process. Even with the RCK’s astonishing success rate, some bad checks fall through the cracks allowing costumers to get away with this fraudulent act. Merchants step up their level of defense when they implement check collection services. With this process, there is no merchant involvement required, and the postal system is not bogged down by collection letters. This service scans check images and recovers all funds electronically, therefore eliminating the cost of postage. The inconvenience of collecting negative funds rests upon someone else’s shoulders, someone who is skilled in check collection services. Businesses are then able to focus on more important areas.
Direct Deposit
Many companies enjoy participating in direct deposit, a check service offered that allows companies to pay their employees electronically instead of with a paper check. On payday an employee’s bank account will be electronically credited with their paycheck amount. This allows businesses to practically eliminate paper checks. Plus, this stops the chance of paychecks that are either lost or stolen. With this re-education in stolen or lost paychecks, a company no longer has to worry about losing money on a stop payment fee or a check replacement fee.
It is statistically proven that employees spend an average of three days’ time waiting in line at their bank to deposit their paychecks. This non-efficient time is gained back, and many companies that participate in direct deposit have seen an increased rate in productivity. Now, employees no longer have to worry about getting to the bank before it closes. Not only do employees profit from the check services option of direct deposit, but also so do participating companies. Companies no longer have to spend so much time handling paper checks and handing them out to employees, and the risk of human error is greatly decreased. This check payment service eliminates any hand sorting or securing of paychecks. A direct deposit program is simple to implement. A company only needs their employee, who wishes to participate, sign an authorization form, and provide their employer with a voided blank check. After this process is completed, direct deposit can begin by the next payday.
Check Conversions
Check conversions is a check services option that uses computer software to expedite the handling of any received checks. Any checks that a merchant receives as form of payment will be directly deposited into the merchant’s bank account. This service is available to the merchant and the customer twenty-four hours a day. Checks are processed electronically through the Federal Reserve. By taking advantage of this option, merchants no longer have to keep paper checks on hand, as a check image is posted for the next seven years and can be easily obtained.
Many merchants employ this check payment service, because there are no bank return fees on any items that a customer may wish to return. Plus, there are no more deposit slips to look for or trips to the bank to have to fit into busy time schedules. Money goes directly from the customer’s bank account to the merchant’s bank account. This is often described as a fast and efficient check service option.
The Benefits of Check Services
Check service organizations have become a valuable option for many people in business. By using a check service organization, businesses can eliminate the use of paper checks; they eliminate the inconvenience of the “check is in the mail,” and they oftentimes receive payment much quicker by using electronic systems for fund transfer. This also eliminates the use of paper checks by consumers. People no longer have to search for their checkbook, find a pen, and worry about holding up a line.
Businesses have paid out high labor costs from the hassle of having to process so many paper checks. With check services, this reduces any labor cost, as funds are directly deposited into the business' banking account. This allows for an improved flow of cash and most times funds are received within twenty-four hours. Twenty-four hours is quicker than having to wait to receive a check. Usually, customers do not even mail checks within one day’s time.
As counterfeiters become an increased threat to business, so does the headache of having to deal with fraudulent checks. Participating businesses are paid back one hundred percent on all recovered funds. This has been proven a more efficient recovery option, and it is a less invasive measure of collecting non-sufficient funds. The merchant, business, or company profits from check services, and the customer is now given a hands-free check writing policy.
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