Merchant Funds Verification-
What is merchant
How is check verification different
from merchant check
Does BetterCheck offer
merchant check verification?
Does merchant check
BetterCheck is a merchant check verification
system available to qualified businesses. BetterCheck verifies
the actual bank account status as of the beginning of the business
Not all check verification systems, and check
verification companies are the same. The term merchant check
verification can be very general and broad, or very specific. Check
verification should not be confused with
check guarantee, which is a very
Check verification is a system that uses the
Routing Number, the Account Number, and optionally the Amount of the
Check and the Check Number to determine if the checking account is
real, if it is open and if there are positive funds in the account.
This system is available only to merchants, and not to individuals.
Merchant check verification can determine
based on the ABA Routing Number if the check actually originates at
the bank that is stated on front of the draft or the front of the
Merchant check verification systems like BetterCheck will provide
the name, address and phone number for the bank the check is drawn
upon, if the routing number is valid. Check verification systems
can be useful for ACH debit verification as well as check
Check verification will also address the
account number at that bank by checking the bank's information from
that business banking day, as posted by the individual institution.
Checking account number positive verification will determine, if the
actual account is an open and active account? If there a positive
balance listed on the account as of that business banking day? Or,
are there any holds or limitations posted on the account?
Checking account number negative information is limited to the
information supplied by the individual bank. Negative responses for
check verification could be as simple as, "invalid routing number,"
but could also be other messages like:
- Account Closed
- Stop Payment
- Over the Limit
- Uncollected Funds
- No Possible Account Under Account Number
- Non-DDA Account
- No Checks
- No Debits
- NSF - Not Sufficient Funds.
Each merchant check verification message
supplied by current check verification systems will indicate
something about the account status to allow businesses to decide if
they should process or not process the item.
Keep in mind that there is currently no system
offered in the U.S. that allows a merchant or individual to verify
and exact amount of funds.
Banks also set up check verification
capabilities for businesses and corporate clients who can also
maintain the same level of confidentiality that is required in their
own privacy policies. Qualified businesses can get check
verification systems like BetterCheck after agreeing to these
privacy policies and proper use as defined in the Fair Credit
BetterCheck is a system that offers the very best and most
comprehensive check verification in the industry. BetterCheck is
designed to drastically reduce the number of bad checks you deposit
or ACH returns you receive by providing live account information for
about 9 out of 10 U.S. checking accounts.
Unlike check guarantee companies that base their decision on the
customer's check writing history, BetterCheck uses the actual status
and information about the account that day.