Check Guarantee is a program in which the merchant is guaranteed to be paid on the checks. It is a type of insurance provided to merchants.A fee is charged to the merchant in exchange for the service of paying the merchant on any checks that are returned.
How Check Guarantee works is each check that you accept is verified. The check guarantee company lets you know whether the check writer has any outstanding unpaid bad checks.This is completed by running the check through a check reader or keying the check information and/or check writer into a terminal.
If it shows that there are no outstanding checks in the system, the check guarantee company issues approval or an authorization number which means you are guaranteed payment for that particular check.You are also responsible for getting certain information about the check writer such as driver's license number and phone numbers.
With more than 18 million checks presented each year at retail locations, it is important to give your customers their choice of payment.In today’s economy. Having a check guarantee program is an important means of minimizing risk. Check guarantee is a benefit to any retail-type business that accepts checks. If your business cannot afford check losses, you will want to consider getting the check guarantee solution.