When it comes to check verification and check guarantee, there is some confusion. Many people think that the two are essentially the same thing, but the two are actually very different and provide a merchant with completely different information about an account holder and account standing. In our review today we will take a look at what check verification and check guarantee are, how they differ and what the advantages and disadvantages are of each.
Check guarantee can be one of two things, a check guarantee card provided by a bank to the account holder, or a service provided by a merchant account provider. First, we will look at how a check guarantee card works. When an account holder makes a purchase they can present their check guarantee card with their check to show the retailer that their account is backed by check guarantee. In order for the check guarantee to be honored, a number of things need to happen.
- The check must be made out to a business
- Check guarantee card number has to be written on the back of the check
- Check must be signed in the presence of the retailer
- Retailer must compare signature on the check guarantee card with the signature on the check
What this check guarantee ensures is that the check can not be stopped by the customer and payment can’t be refused by the bank that issued the check guarantee card.
A second type of check guarantee is what is offered by merchant account service providers. This service simply provides extra protection to businesses that are using merchant account services and want to accept checks. Specifics will vary from one merchant account provider to the next so you will have to check with your merchant account provider to find out exactly what they offer in terms of a check guarantee program.
Check verification is a very different process and is much more specific to account standing at the present time. For example check verification may return specific results about whether a specified account actually exists, is in good standing, has non-sufficient funds or any other flags on the account. Check verification takes place by using both the routing number and account number on the check. A check verification can not disclose how much money is in an account, but can let a business owner know that it is a legitimate account that is in good standing. Some merchant services may also include a merchant check verification, but again the specifics will vary from one merchant account provider to the next. If you would like to compare some merchant account services our top three recommendations are:
Use our links above to visit these three websites. Get in contact with a representative and find out what kind of check verification and check guarantee services they can provide for your business website.