Merchant Check Services

by VENDIREX on 02/26/2015 - 12:24 pm |

Tag: Merchant Services

Merchant Check ServicesAs a merchant, you want to be able to accommodate any and all potential customers, and if they are not paying in cash the transaction is going to involve an expense of some kind. Cost of doing business is an expense you should be happy to absorb. Not every customer is going to use debit or credit cards, and those service fees may not be transferrable - depending on state laws or regulations set forth by the associated bank.  


Accepting checks has always been a bit of a sore spot for merchants, though local customers are especially inclined to write personal checks, as are those of the older generation. After all, writing a check at the point of sale involves showing your driver’s license, which protects the consumer as well as the merchant, right? Credit cards - on the other hand - can be stolen, along with online identities. It’s not exactly the age of private information security. However, with the Check Services available today it is much less of an inconvenience and the risk is minimized.


What is a Check Conversion?


The check conversion system turns a personal POS check into an electronic transaction (just like a credit card). You swipe the check, then return it to your customer; eliminating the need for a bank deposit. State of residence, driver’s license number and a phone number are generally required for identification.


Benefits of Electronic Check Services


Automated Clearing House (ACH) is an electronic network in the U.S. for financial transactions. This network handles large batches of debit, credit, and e-checks. Converting a check into an ACH reduces labor cost by saving time and eliminating paperwork. Utilizing verification and guarantee services minimizes the occurrences of bounced checks. If there are insufficient funds, the Check Services partner will re-submit twice as needed. The computerized data is stored and can be accessed instantly, and reports and statements are regularly generated as well.

Levels of Service


  1. Check Conversion with Guarantee - the check is turned into an electronic transaction. All required information must be obtained from the customer, and funding is guaranteed. The merchant assumes no risk for approved and transactions. The need for paperwork and collections is completely eliminated.

  2. Check Conversion with Verification - transactions are routed for verification through the participating bank service and submitted via Automated Clearing House (ACH). If your company very seldom has a bad check, the verification service (also known as predictive risk decisioning) may be adequate as it does check the customer’s history for check fraud.

  3. Check Conversion with Verification & Collection - as above, with collections handled by the service.

  4. Check Conversion Only - the check is turned into an electronic deposit, but the merchant takes on any risk of return.




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