What is Check Verification?
Groups of Merchants used to get together and share information about bad checks—checks that were received in exchange for purchased goods or services, but then were returned to the Merchant unpaid by the bank or other financial institution on which the checks were drawn. Merchants then could choose to refuse to accept checks from people whose checks had previously 'bounced.'
Check Verification services are the automated version of this bounced check protection service:
- A check is swiped through a terminal reader before being accepted
- The account number is then compared to a central database of 'bad' numbers
- If the account number is in the database, the Merchant refuses to accept the check
Avoid the risks associated with accepting checks as payment
The added benefit of CMS Check Verification services is that the database includes not only checking account numbers for people who have already been bounced checks, it also includes:
- Account numbers that are impossible
- Account numbers that are defective
- Account numbers that have been used at a number of Merchant locations in a short period of time in the same geographic area
This means that you can avoid being victimized by the typical techniques used by organized criminals, as well as people who are unable to control their spending.