How do Electronic Check Verification Systems Work?
There are actually two main types of verification services. One common service offers to compare the check to a negative database of bad check records. This type of system actually started about 20 years ago and even with the delays of the earlier system, merchants saw a significant decline in bad checks. Today, thanks to faster POS software systems and electronic check readers, many companies now offer instant electronic access to their vast databases to compare checks. In many cases you’re able to customize the criteria that the checks are evaluated by, thus allowing you to determine the level of risk that you are willing to take. The next type of verification system that is gaining in popularity is real time verification where in addition to comparing the check to a database, the client’s bank account is immediately accessed to determine sufficient funds. But wait there’s more! Earlier I asked you “what if you could collect on 80% of your bad checks.” In addition to instant check ve
