Guide to Check Processing Services

Know how to evaluate check processing services

Doing your homework before you sign up with a company for processing checks helps ensure that you pick a reliable company that's competitive with their rates. Some check processing companies work as third party brokers rather than actual processors. Other companies may do check processing through a bank not located in the United States.

I recommend: Ask 26 questions before signing up with a check processing service.

Install point of sale (POS) check processing equipment

Processing checks using a POS system converts checks to an electronic transaction which eliminates the need for physical deposits at the bank. If a check doesn't clear, you immediately return it to the customer, securing their information, and require another form of payment.

I recommend: Electronic Clearing House (Echo) uses a system designed to work with VeriFone terminals, which most retailers use for credit card processing. Celerant Command Retail offers check verification at the register.

Use the Internet for processing checks electronically

With online check payments, the customer provides no identification such as a driver's license and typically lives in another city, state or country. This makes collecting on a bad check more difficult. An Internet check, or I-check, isn't a physical check, which makes it harder to trace.

I recommend: Safeguard your security by signing up with a service that provides full disclosure of its methods, like Pay by Check. AVPS allows you to accept checks online. Optimal Payments includes an e-check solution that includes check verification.