|May 12th, 2022|
Instant check verification services are solely meant for ACH accounts and electronic check payments are utilized to validate bank account information before processing an eCheck payment.
Incorrect data entry is the single most common problem of returned transactions. This is because check verification confirms that routing and account numbers are correct before the transaction is submitted for processing.
Do you know instant check verification services allow you to save money?
Yes, you have read it right. According to the sources revealed, nearly 51% of business payments in the US are processed through eChecks every year. This is because the fewer returned transactions a merchant carries, you would be able to saves more money.
The report also revealed that several businesses dependent upon paper checks witnessed 71% actual or attempted bank fraud. On the other side, this high percentage rate also makes it necessary for businesses to counter any check fraud possibilities.
How electronic check verification works?
eCheck verification is considered to be mandatory for several businesses in today’s time. Many merchant providers process payments through the ACH network as debit or credit transactions.
Several merchant providers process payments through the ACH network for debit or credit transactions. Many check processing companies prefer an automatic verification built-in.
If an individual runs a service-based business, they need to ensure that their chosen payment processing company will offer immediate check verification services.
Their preferred payment processing company can highlight their business within high-risk, low-risk, and medium-risk categories. With their help, it becomes easy for high-risk and medium-risk merchants to know when their transactions won’t be able to get clearance.
Instant check verification services assure organizations don’t get short-changed due to bad checks.
Plus, payment processing companies make it easier for merchants to manage their cash flow. For example, many payment processing companies like Stripe, Square, & Due allow merchants to set up automatic recurring payments.
Thus, it can be said that there are several ways these payment processing companies like Paycron can prove to be helpful to your business.
What are check verification services?
Electronic check verification services reduce the risk of processing for merchants. In addition, these services confirm that bank accounts remain open and carry positive balances.
These services use information gathered from a wide array of positive and negative databases to determine whether or not the payment will get cleared. Moreover, the bank account verification considerably indicates that an electronic check transaction can be cleared without any issues.
Wouldn’t it be an eye-opener for you to acknowledge that check verification is amalgamated with identity verification services?
The fact mentioned above is an eye-opener not only for you but also for merchants who remained unaware of it. The amalgamation of check and identity verification is valuable for e-commerce and MOTO merchants, which sell high-ticket items.
Plus, identity verification assists merchants in knowing the true identity of buyers. On the other side, ID verification allows merchants to connect a wide variety of information with the buyer.
The business process of several organizations doesn’t disrupt as identity verification and bank account verification services are aligned in a non-disruptive manner. Moreover, check verification services and identity verification remain inexpensive and can be implemented quickly. This service enables a merchant to get more orders with less risk.
Are you familiar with how check processing services work?
Check verification services prefer extensive searches for positive and negative databases to confirm the information of payments mentioned on the bank account from which funds get debited.
Check verification includes information gathered directly from financial institutions and multiple sources. For an assumption, several merchants contribute to negative databases and even identify potential fraudsters.
Besides confirming that bank account and routing numbers are rightly mentioned, the check verification service rescues eCommerce & MOTO merchants.
It remains quite easy for buyers to enter routing & account numbers incorrectly when shipping takes place online. There also lies the probability that a merchant account holder can wrongly type the number by listening to customer service representatives.
Thus, it helps in reducing data entry errors as it confirms account numbers and routing numbers before submitting an electronic check for processing, significantly reducing return rates.
Do you have any idea about what type of businesses use check verification services?
Even before the order gets processed, the merchants in industries diligently believe in verifying their bank account information.
This is because verifying the details about check services and ACH payments is the most well-thought wisdom that propels merchants to use check verification methods.
If an individual accepts checks online, the check verification service authorizes the bank account information.
MOTO merchants who accept electronic checks generally verify the bank account when entering the information into virtual terminals, even before submitting the transaction for processing.
This rectifying checks service favors merchants who submit large files for bulk processing and can easily integrate check verification services as part of their file upload. Perhaps, this is a subtle reason why bank accounts are verified before sending the electronic check for final processing.
Thus, one can quickly add check verification services to their existing platform to seamlessly verify bank accounts before processing the payments.
Read to Know How eCheck Processing Services Help Businesses to Streamline Their Payment Process