4 Additional Types of Echeck Processing Services you Should Know

By: Kay Fione

If you are a merchant with an existing echeck processing service, you learn that receiving paper check payments is a breeze. Just convert the checks to electronic form and then click " Send". In a matter of days, you will soon have the full check amount deposited in your account. Under ideal condition, of course. Meaning, the customer transacts honest business with you and has adequate funds in his checking account.

But wait . What if the check contains no sufficient fund, or that it is a fraudulent one? These things happen daily in the business world, you know. Some are done inadvertently because sometimes the check writer does not know his or her checks no longer have sufficient funds. Others are perpetuated by deceitful customers. You will incur losses if you are not alert to these unfortunate incidents.

Protect yourself against such unlikely events by subscribing to additional echeck services. These are :

1.)CHECK VERIFICATION
A customer walks in to your store, selects items, and then issues a check as payment for his purchases.
Unknown to you, this particular customer has a history of issuing bad checks. If you don't have check verification service, you would have gladly accepted the check and incur losses.
But with check verification service, you run the check into your POS terminal and, in a matter of seconds, you will receive a warning message that this particular checking account has been placed on a red status. You can then act accordingly based on that alert message.
Check verification service is basically running a check against a nationwide database of checking accounts. It scans checking accounts and gives warning message against customers that have issued bad checks in the past.

2.)CHECK GUARANTEE
For a very minimal fee, check guarantee is a service where the checks you received are checked against a negative database and thus protect you, in real time, against bad and fraudulent checks.
It offers an extra layer of protection for the merchants.

3.)CHECK COLLECTION
This is another type of useful echeck processing service. Suppose you have a customer who issues a check payment for you. At the moment of writing that check, the customer has enough funds in his checking account. But when the bank tries to debit the amount, his checking account no longer has sufficient funds. In other words, the check bounces.
If you have check collection service, the bank will forward the bounced check to your processor. The processor, in turn, will send it to the collection team who will personally get in touch with the issuer through mails or telephone calls to collect the face amount of the check for you.

4.)CHECK RE-PRESENTMENT
If you receive any bad checks, your bank will send them to your processor. Your echeck processing company will present the check again for two times, or re-present them, to the Automated Clearing House until you get the payment. The amount is credited to your bank account.

Merchants will surely gain a lot by subscribing to these extra echeck processing services.

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