Check verification services remain an integral part of the security when processing electronic checks in the ACH network. Merchants must adopt these protocols to safeguard their business against potential fraud. Studies show that checks were the top payment method impacted by fraudulent activities, in 2020. These services help merchants get the same level of security and PCI compliance with check processing as they get with credit card processing. This blog discusses the five critical components of a complete check verification system.
5 Components of a Check Verification System
Basic Check – iCG Basic
Authorizing checks quickly before processing helps merchants reject checks beforehand, thereby saving time and money. The primary check validation allows merchants to rapidly check a few essential things, like the routing number on checks. This comprehensive level of check verification is good enough for repeat trusted customers.
Negative Data Check – iCG Proprietary
iCheckGateway.com developed its own proprietary negative data database. Merchants access this information as an additional level of check verification. So, we highly recommend this level of assurance for all previous and new customers. Moreover, merchants also leverage the iCG Negative data services that collect bad check data intelligence from the top negative data database providers.
Real-Time Data Check – iCG Real-Time
The real-time verification service uses iCG’s direct connection to databases from several financial institutions to view the account status of the check writer. This database is regularly updated with new data based on the previous day’s processing cycles. Developers considered the numerous returned check codes a merchant may face. So, a verification service helps merchants quickly check the following for a new customer when they submit a check online or in person:
- Invalid Routing Number
- Invalid Account Number
- Invalid Check Number
- Account Blocked
- Routing Number Correct – No Account Found
- Bank Account Closed
- ACH Items Only
- PBCL Details Values are Variable
- Recent Stop Payments
- Recent Returns, or High Debits
- Non-Reporting Bank
- Fraud or Stolen Checks Reported
- Negative Data Found
Business owners across the nation will protect their profits and time against fraudulent check writers. With this solution, the virtual transaction process provides a comprehensive check verification protocol, managed with automation for each transaction processed.
Private Bad Data List Check
Merchants in businesses that deal with a high volume of transactions create their custom private list of bad check data. With iCG, merchants easily create, manage, and update such lists and handle bad checks. Verifying the checking account and tracking the common data known on the bank account holder kept by financial institutions nationwide assist in this investigative effort.
Client and Organization Identity Check
As times change, check verification at an individual level is not enough for organizations dealing with B2B transactions. Instead, they need ways to check the client and organization’s identity. With this verification level, merchants efficiently conduct transactions with peace of mind.
Gaining access to both positive and negative account information, merchants quickly verify the check status before accepting it to prevent fraudulent behaviors. Consequently, they implement these advanced verification services at their POS counters, online with eCommerce sites, and with mobile technology. So, they verify the customer check and account validity within seconds. A quick turnaround time with a technologically advanced system helps them save time and offer better customer service.
Become Educated to Accept Checks with Ease
Now, improve your check acceptance rates while protecting your profits with iCG Verify. Start accepting ACH and credit card payments securely alongside one another using a multitude of digital technology solutions integrated efficiently into a single platform today. Get in touch with our team of financial experts here to know more!
Date originally published: March 22, 2022
MORE TAGS:ACH Technology, Nacha Preferred Partnership, ACH Education