Check verification screens both the check and the person writing it — validating account status, checking for a history of bounced checks, and cross-referencing a database of known problem check writers, all in real time.
What it can catch
- Closed accounts and stop payments
- Non-sufficient funds (NSF) balances
- Non-DDA (non-checking) accounts
- Invalid or non-existent account and routing numbers
- Stolen, forged, or otherwise fraudulent checks
Customers with a history of bad checks get declined; anyone not flagged in the negative database is approved.
Verification vs. guarantee
Verification alone is enough for most check and debit acceptance. Guarantee services add cost on top and are usually only worth it at high monthly volume. Check Verification with Conversion goes a step further, electronically transferring funds without a manual deposit step.
Typical cost: $0.15–$0.35 per transaction, plus possible setup fees and a monthly minimum.